Mortgage Renegotiation - Page 2

Pico and ME · 03-10-2009, 01:01 PM

Keeping people in their homes by re-structuring their mortgages isnt welfare or helping only those people who made bad decisions...it seems like good business sense considering the alternative.

03-10-2009, 01:02 PM

Part of me wishes I could renegotiate, but I've been far too responsible and taken far too few risks so even though each month I barely scrape by (just sent my mortgage payment this morning with only five days to spare!) I doubt I could qualify for a restructure, and frankly with only 14 years left at 5.5% I'm not sure it wouldn't put me in a worse position if I did.

So I just have to hope I can keep scraping up that mortgage payment every month for 14 more years.

sugarpop · 03-11-2009, 09:05 AM

Quote:

Originally Posted by Tiki

Part of me wishes I could renegotiate, but I've been far too responsible and taken far too few risks so even though each month I barely scrape by (just sent my mortgage payment this morning with only five days to spare!) I doubt I could qualify for a restructure, and frankly with only 14 years left at 5.5% I'm not sure it wouldn't put me in a worse position if I did.

So I just have to hope I can keep scraping up that mortgage payment every month for 14 more years.

I think you would be surprised. If you're paying more than 1/3 of your income, you might qualify for one of the programs. You may not be able to get that 2% deal, but most lenders are willing to work with people right now who are struggling, even if they HAVE been making payments on time. Check out these links: http://www.financialstability.gov/ma...nance_yes.html
http://www.treas.gov/news/index1.html
http://www.treas.gov/press/releases/...es_summary.pdf
http://www.treas.gov/press/releases/...guidelines.pdf

I know someone who is in the process of getting refinanced. She didn't have an ARM and when she got the loan she could afford it. Since then, her husand passed away so she no longer has his income, and she had a heart attack, so she can no longer work. She tried to get refinancing last summer and they said no, and she had her house on the market for over a year trying to get into something smaller. She doesn't really owe that much anymore, but the payments are high and since her situation has changed so drastically, she really does need the help, or she could end up losing her home.

I would say call anyway and see what they say. It can't hurt. Lenders are more open to helping people right now, because they almost have to be.

Pico and ME · 03-10-2009, 01:05 PM

Yeah, without enough income, all the restructuring in the world wouldnt help us either. If hubby loses his job, we lose the home.

03-10-2009, 01:48 PM

That was useful to know... I might even go for it, thank you!

TheMercenary · 03-10-2009, 08:00 PM

So why can't we just let them go bankrupt in the cases of bad decisions and live in a box for punishment?

sugarpop · 03-11-2009, 09:14 AM

Quote:

Originally Posted by TheMercenary

So why can't we just let them go bankrupt in the cases of bad decisions and live in a box for punishment?

Because some of the people getting hurt now really didn't do anything wrong. Refinancing people's loans shouldn't bother you if it keeps them in their homes. It will help calm the housing market and eventually stop prices from falling, something people are very concerned about. Less forclosures DOES help YOU, whether you realize it or not.

Your anger is aimed at the wrong people. You should be angry at all the bankers and investors and lenders who caused the problem by creating unethical structures that would increase their wealth even though they knew wouldn't work. It never ceases to amaze me how you pick on the little people and never point the blame where most of it should go, corporate greed and excess and corruption.

TheMercenary · 03-11-2009, 09:53 PM

yea, those evil Corps. People have no personal responsibility in this. Just blame some esoteric entity.

sugarpop · 03-13-2009, 12:39 PM

PEOPLE ran those corporations. PEOPLE made decisions that put the world economy at risk. MOST OF THE PEOPLE WHO DID THAT were the people who worked at banks, mortgage companies and other lending institutions. They did things that straddled the line of illegality, and were certainly unethical. And they KNEW IT. I have a feeling a lot of people will be going to prison when this is over. And rightly so.

Bernie Madoff is finally in prison. Next I hope they start looking at the people running the institutions that caused the financial meltdown, like Richard Fuld, the people running AIG and Citigroup, the people at Countrywide, etc etc etc.

classicman · 03-13-2009, 01:23 PM

And the elected officials in charge of oversight like Barney Frank & the
Committee Members

TheMercenary · 03-16-2009, 10:54 AM

Quote:

Originally Posted by classicman

And the elected officials in charge of oversight like Barney Frank & the
Committee Members

sugarpop · 03-13-2009, 01:36 PM

Them too.

classicman · 03-16-2009, 12:59 PM

The R's too Merc - Every fuckin one of them. Their oversight was apparently as useless as a rainstorm over the ocean. We have justifiably been very critical of mgmt at these companies, well lets look at this group too. Seems to me they have been getting a free pass.

Beestie · 03-16-2009, 10:09 PM

Gotta go with sugarpop on this one. The mortgage structures that paved the way for the mess we are in should never have been allowed to exist.

Once they hit the market, Fannie and Freddie had no choice but to buy the damn things since they were targeted at folks who could not otherwise have purchased a home otherwise they would have been criticised for not fulfilling their charter of expanding home ownership.

Trouble is, those instruments were abused. They were used to buy more house by people who didn't need the extra help. That's why housing prices skyrocketed and the collapse of these time-bomb mortgages is a big part of why the housing market and nearly the entire international financial market almost collapsed.

These risky instruments were not only created in the mortgage market but in every kind of credit market. Across the globe. A lot of people saw how bad an idea this was but nobody could stop it. One could even make the case that this economic collapse was inevitable. Kind of like a fault line that never eeks out periodic mini-quakes of tolerable magnitude but continues to build pressure until the inevitable 9.5 continent-crusher.

classicman · 03-17-2009, 12:07 AM

Quote:

Originally Posted by Beestie

Gotta go with sugarpop on this one. The mortgage structures that paved the way for the mess we are in should never have been allowed to exist.

And the legislation that enabled them is at fault, no?

03-10-2009, 08:00 PM	#6
TheMercenary “Hypocrisy: prejudice with a halo” Join Date: Mar 2007 Location: Savannah, Georgia Posts: 21,393	So why can't we just let them go bankrupt in the cases of bad decisions and live in a box for punishment? __________________ Anyone but the this most fuked up President in History in 2012!

03-11-2009, 09:53 PM	#8
TheMercenary “Hypocrisy: prejudice with a halo” Join Date: Mar 2007 Location: Savannah, Georgia Posts: 21,393	yea, those evil Corps. People have no personal responsibility in this. Just blame some esoteric entity. __________________ Anyone but the this most fuked up President in History in 2012!

03-13-2009, 01:23 PM	#10
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	And the elected officials in charge of oversight like Barney Frank & the Committee Members __________________ "like strapping a pillow on a bull in a china shop" Bullitt Last edited by classicman; 03-13-2009 at 03:18 PM.

03-16-2009, 12:59 PM	#13
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	The R's too Merc - Every fuckin one of them. Their oversight was apparently as useless as a rainstorm over the ocean. We have justifiably been very critical of mgmt at these companies, well lets look at this group too. Seems to me they have been getting a free pass. __________________ "like strapping a pillow on a bull in a china shop" Bullitt Last edited by classicman; 03-16-2009 at 01:06 PM.

03-16-2009, 10:09 PM	#14
Beestie -◊\|≡·∙■·∙≡\|◊- Join Date: Feb 2003 Location: Parts unknown. Posts: 4,081	Gotta go with sugarpop on this one. The mortgage structures that paved the way for the mess we are in should never have been allowed to exist. Once they hit the market, Fannie and Freddie had no choice but to buy the damn things since they were targeted at folks who could not otherwise have purchased a home otherwise they would have been criticised for not fulfilling their charter of expanding home ownership. Trouble is, those instruments were abused. They were used to buy more house by people who didn't need the extra help. That's why housing prices skyrocketed and the collapse of these time-bomb mortgages is a big part of why the housing market and nearly the entire international financial market almost collapsed. These risky instruments were not only created in the mortgage market but in every kind of credit market. Across the globe. A lot of people saw how bad an idea this was but nobody could stop it. One could even make the case that this economic collapse was inevitable. Kind of like a fault line that never eeks out periodic mini-quakes of tolerable magnitude but continues to build pressure until the inevitable 9.5 continent-crusher. __________________ ♠ ♥ ♣ ♦

03-10-2009, 01:01 PM	#1
Pico and ME Are you knock-kneed? Join Date: Jul 2008 Location: Middle Hoosierland Posts: 3,549	Keeping people in their homes by re-structuring their mortgages isnt welfare or helping only those people who made bad decisions...it seems like good business sense considering the alternative.

03-10-2009, 01:02 PM	#2
Tiki Guest Posts: n/a	Part of me wishes I could renegotiate, but I've been far too responsible and taken far too few risks so even though each month I barely scrape by (just sent my mortgage payment this morning with only five days to spare!) I doubt I could qualify for a restructure, and frankly with only 14 years left at 5.5% I'm not sure it wouldn't put me in a worse position if I did. So I just have to hope I can keep scraping up that mortgage payment every month for 14 more years.

03-10-2009, 01:05 PM	#4
Pico and ME Are you knock-kneed? Join Date: Jul 2008 Location: Middle Hoosierland Posts: 3,549	Yeah, without enough income, all the restructuring in the world wouldnt help us either. If hubby loses his job, we lose the home.

03-10-2009, 01:48 PM	#5
Tiki Guest Posts: n/a	That was useful to know... I might even go for it, thank you!

03-13-2009, 12:39 PM	#9
sugarpop Professor Join Date: Nov 2008 Location: the edge of the abyss Posts: 1,947	PEOPLE ran those corporations. PEOPLE made decisions that put the world economy at risk. MOST OF THE PEOPLE WHO DID THAT were the people who worked at banks, mortgage companies and other lending institutions. They did things that straddled the line of illegality, and were certainly unethical. And they KNEW IT. I have a feeling a lot of people will be going to prison when this is over. And rightly so. Bernie Madoff is finally in prison. Next I hope they start looking at the people running the institutions that caused the financial meltdown, like Richard Fuld, the people running AIG and Citigroup, the people at Countrywide, etc etc etc.

03-13-2009, 01:36 PM	#12
sugarpop Professor Join Date: Nov 2008 Location: the edge of the abyss Posts: 1,947	Them too.

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