Mortgage Renegotiation

xoxoxoBruce · 03-10-2009, 12:11 AM

A friend of mine bought a new motorcycle last week, so Saturday he was visiting most everyone he knows, showing it off.
He rode down to Delaware to visit a friend that was up to his ears with an ARM mortgage that was approaching 20%, and in danger of losing the house.

The guy told him the mortgage company (CITI I think) had contacted him to renegotiate the mortgage. They said it was part of the "bailout" deal and gave him 2% for three years and 4% after that on a fixed rate mortgage.

He also had a home equity loan with the same company, and they gave him the same 2%/4% deal on that.
Now he won't lose his home and his wife is smiling again.

This is the first positive result of the "bailout", I've personally heard of.

Aliantha · 03-10-2009, 12:12 AM

That's a great deal for your mates mate Bruce.

Maybe the bailout will help those it's meant to help after all.

BigV · 03-10-2009, 02:19 AM

Have heard on the news about a local bank, Banner Bank, offering 30 fixed first mortgages at ... are you sitting down? 3.875%. Wow.

The catch is this rate is only available to customers with good credit, and only on select properties. Namely, properties whose construction has been financed by Banner Bank. The contractors/homebuilders are on the hook at the same bank and the bank doesn't want to own the houses first. So they're doing to get the money and the inventory moving.

Beestie · 03-10-2009, 02:42 AM

Call your lender. Do it today.

Trust me.

xoxoxoBruce · 03-10-2009, 03:28 AM

Almost makes me wish I had a mortgage... almost.

TheMercenary · 03-10-2009, 05:38 AM

It still begs to ask, why are we helping so many people who made bad decisions when all those who pay on time are still screwed with the deals they made?

Beest · 03-10-2009, 11:53 AM

Quote:

Originally Posted by TheMercenary

It still begs to ask, why are we helping so many people who made bad decisions when all those who pay on time are still screwed with the deals they made?

I understand the argument to be it would take too long to sort the wheat from the chaff, they need to get things stabilized ASAP.

It's sucky but it's the bitter pill.

03-10-2009, 12:11 PM

Quote:

Originally Posted by TheMercenary

It still begs to ask, why are we helping so many people who made bad decisions when all those who pay on time are still screwed with the deals they made?

The new "Making Home Affordable" mortgage assistance program is not only (or not even primarily) for those who "made bad decisions."

It is for those who "pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home"

And those homeowners "struggling to make their monthly mortgage payments either because their interest rate has increased or they have less income."

More on the FinancialStability.gov website.

Including self-assessment tools to see if you are among the 7 to 9 million homeowners who did not necessarily "make bad decisions" and are paying their mortgage on time or who might be struggling to meet payments because of recent job loss.

The Fact Sheet (pdf) has more details.

Beestie · 03-10-2009, 01:44 PM

Quote:

Originally Posted by TheMercenary

It still begs to ask, why are we helping so many people who made bad decisions when all those who pay on time are still screwed with the deals they made?

The money isn't going to come out of thin air - either way, we all will bear a portion of the economic contraction.

Think of it as shoplifting or insurance fraud. The loss gets capitalized into the rates that everyone pays.

There's two ways to get to your neighbor's house: you can walk out your front door and take a left and you're there or you can walk out your front door, take a right and walk all the way around the block. Either way you end up at your neighbor's house but one way is a little shorter.

If you think you can "teach these irresponsible, deadbeats a lesson they won't soon forget", you are just kidding yourself. The money is going to come from somewhere. When times are good, we all benefit more than we deserve (stocks appreciate, homes appreciate, wages increase, prices drop - whatever). When times are bad, you don't get to carve out an exception for yourself. Times are bad for everyone.

Sundae · 03-10-2009, 06:06 AM

There was a letter in my parents' horrible right wing paper the other day. I rarely agree with anything written in it, but this one made me smile.

It suggested that the Government gives everyone over the age of 18 £500 to be spent in this country in the next three months. It claimed that this would be a far better deal that bailing out hundreds of different companies (and more specifically the banks) would cost less and would give the economy the boost it needed without printing more money.

It couldn't work of course - for a start you could never police the conditions, and the infrastructure needed would cost a fortune. But I liked the idea. Of course I did! £500? Yes please. I would spend it all on me & Diz. After all, everyone I know would have the same amount.

Anyway, glad that someone has had some joy out of the economic downturn though Bruce*. And that companies are acting responsibly now. Funny how news travels isn't it? Almost like in ye good olde days, when people would ride from farm to farm. Except this horse runs on petrol. And the internet thing... Nope, can't think of an analogy. Pigeon post?!

* Actually I have too. No-one seems to think it's weird that I am living with my parents again. Mum's friends do not ask "What's wrong with her?" Everyone assumes because I previously lived in London I had a high powered job in banking or finance and am just weathering the storm here. Which gratifies Mum more than me, but in doing so makes my life easier

monster · 03-16-2009, 09:33 PM

Quote:

Originally Posted by Sundae Girl

There was a letter in my parents' horrible right wing paper the other day. I rarely agree with anything written in it, but this one made me smile.

It suggested that the Government gives everyone over the age of 18 £500 to be spent in this country in the next three months. It claimed that this would be a far better deal that bailing out hundreds of different companies (and more specifically the banks) would cost less and would give the economy the boost it needed without printing more money.

It couldn't work of course - for a start you could never police the conditions, and the infrastructure needed would cost a fortune. But I liked the idea. Of course I did! £500? Yes please. I would spend it all on me & Diz. After all, everyone I know would have the same amount.

the govt has done that twice in the time we've been here. Each time we've said thanks very much and squirrelled it away

Beestie · 03-16-2009, 09:46 PM

Quote:

Originally Posted by monster

the govt has done that twice in the time we've been here. Each time we've said thanks very much and squirrelled it away

Saving it is actually the same thing as spending it. In the long-run, its better. When savings go up, the cost of credit goes down which leads to more investment which leads to... you get the pic.

And paying down debt is economically similar to saving.

sugarpop · 03-17-2009, 05:40 PM

Quote:

Originally Posted by Beestie

Saving it is actually the same thing as spending it. In the long-run, its better. When savings go up, the cost of credit goes down which leads to more investment which leads to... you get the pic.

And paying down debt is economically similar to saving.

And smarter.

BrianR · 03-10-2009, 11:11 AM

We could give every American two million dollars and not approach the level of money being thrown at big business.

Happy Monkey · 03-10-2009, 11:34 AM

That would be $600 trillion. It'll be a few more years before even our debt reaches that.

03-10-2009, 12:11 AM	#1
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	Mortgage Renegotiation A friend of mine bought a new motorcycle last week, so Saturday he was visiting most everyone he knows, showing it off. He rode down to Delaware to visit a friend that was up to his ears with an ARM mortgage that was approaching 20%, and in danger of losing the house. The guy told him the mortgage company (CITI I think) had contacted him to renegotiate the mortgage. They said it was part of the "bailout" deal and gave him 2% for three years and 4% after that on a fixed rate mortgage. He also had a home equity loan with the same company, and they gave him the same 2%/4% deal on that. Now he won't lose his home and his wife is smiling again. This is the first positive result of the "bailout", I've personally heard of. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

03-10-2009, 12:12 AM	#2
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	That's a great deal for your mates mate Bruce. Maybe the bailout will help those it's meant to help after all. __________________ Kind words are the music of the world. F. W. Faber

03-10-2009, 02:19 AM	#3
BigV Goon Squad Leader Join Date: Nov 2004 Location: Seattle Posts: 27,063	Have heard on the news about a local bank, Banner Bank, offering 30 fixed first mortgages at ... are you sitting down? 3.875%. Wow. The catch is this rate is only available to customers with good credit, and only on select properties. Namely, properties whose construction has been financed by Banner Bank. The contractors/homebuilders are on the hook at the same bank and the bank doesn't want to own the houses first. So they're doing to get the money and the inventory moving. __________________ Be Just and Fear Not.

03-10-2009, 02:42 AM	#4
Beestie -◊\|≡·∙■·∙≡\|◊- Join Date: Feb 2003 Location: Parts unknown. Posts: 4,081	Call your lender. Do it today. Trust me. __________________ ♠ ♥ ♣ ♦

03-10-2009, 03:28 AM	#5
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	Almost makes me wish I had a mortgage... almost. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

03-10-2009, 05:38 AM	#6
TheMercenary “Hypocrisy: prejudice with a halo” Join Date: Mar 2007 Location: Savannah, Georgia Posts: 21,393	It still begs to ask, why are we helping so many people who made bad decisions when all those who pay on time are still screwed with the deals they made? __________________ Anyone but the this most fuked up President in History in 2012!

03-10-2009, 06:06 AM	#10
Sundae polaroid of perfection Join Date: Sep 2005 Location: West Yorkshire Posts: 24,185	There was a letter in my parents' horrible right wing paper the other day. I rarely agree with anything written in it, but this one made me smile. It suggested that the Government gives everyone over the age of 18 £500 to be spent in this country in the next three months. It claimed that this would be a far better deal that bailing out hundreds of different companies (and more specifically the banks) would cost less and would give the economy the boost it needed without printing more money. It couldn't work of course - for a start you could never police the conditions, and the infrastructure needed would cost a fortune. But I liked the idea. Of course I did! £500? Yes please. I would spend it all on me & Diz. After all, everyone I know would have the same amount. Anyway, glad that someone has had some joy out of the economic downturn though Bruce. And that companies are acting responsibly now. Funny how news travels isn't it? Almost like in ye good olde days, when people would ride from farm to farm. Except this horse runs on petrol. And the internet thing... Nope, can't think of an analogy. Pigeon post?! Actually I have too. No-one seems to think it's weird that I am living with my parents again. Mum's friends do not ask "What's wrong with her?" Everyone assumes because I previously lived in London I had a high powered job in banking or finance and am just weathering the storm here. Which gratifies Mum more than me, but in doing so makes my life easier __________________ Life's hard you know, so strike a pose on a Cadillac

03-10-2009, 11:11 AM	#14
BrianR Cleverly disguised as a responsible adult Join Date: Jan 2001 Location: Dallas, TX Posts: 3,338	We could give every American two million dollars and not approach the level of money being thrown at big business. __________________ Never be afraid to tell the world who you are. -- Anonymous

03-10-2009, 11:34 AM	#15
Happy Monkey I think this line's mostly filler. Join Date: Jan 2003 Location: DC Posts: 13,575	That would be $600 trillion. It'll be a few more years before even our debt reaches that. __________________ _________________ \|...............\| We live in the nick of times. \| Len 17, Wid 3 \| \|_______________\| [pics]

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