Mortgage Renegotiation

[Happy Monkey]

Originally Posted by lumberjim

..... but writing off principal is a certain loss, not a potential loss, and therefore....not bloody likely.

If they're upside-down, then foreclosure is also a certain loss. Possibly even a bigger one, as the lendee can probably pay more than the property could sell for at auction.

[lumberjim]

Mark Zandi, the chief economist at Moody's Economy.com, believes the government may take steps to tackle the issue of negative equity head-on this year by incorporating principal write downs--which reduce a borrower's negative equity position--into the housing rescue program.

this means you and I (and our kids) will be paying their mortgages.

[xoxoxoBruce]

I got the impression the government was not paying the mortgage companies the difference, just threatening them with tougher regulations if they didn't "volunteer" with writing the reduction off as bad debt.

[classicman]

yeh sure - wink wink, nudge nudge.

[xoxoxoBruce]

That's the way it's been working in Philadelphia, with court appointed arbitrators.

The other program is the mortgages the fed already owns. There a reduction in the terms, the fed (taxpayers) will have to eat. But there again, it's better to get less, than own an unsellable house sitting empty.

Worse yet, they might give them to those wretched homeless people. cue Dana

[classicman]

I think that with the current administration we could get a program or a Czar who could identify some of "these mortgages" and perhaps put the lender and the homeowner together in front of an arbitrator or something and work out some type of deal.
Making an attempt to stem the tide of strategic foreclosures could put a real dent in the number of foreclosures. Just a thought.

[xoxoxoBruce]

The fed has the power to do this on there own, with the mortgages they already hold. I read they are trying to get others to go along with that plan.

[classicman]

If thats the case why aren't people trying to get this done in droves? It would seem to me that anyone even remotely close to this situation would be asking for their mortgage to be reduced/restructured. I haven't seen anything on it anywhere till this article.

[Undertoad]

Because they told me it would be easier with a job or a marriage and I haven't gotten either.

[xoxoxoBruce]

There have been numerous articles in the Philly paper about them trying to figure out why people haven't applied, or applied and never returned the paperwork to get it rolling.

[lumberjim]

I think you have to be 4 months behind to try for the obama plan...... that's too scary to consider.

I've seen one guy with otherwise perfect credit intentionally not paying his mortgage because he wanted to get into this plan. jerk.

[lumberjim]

YEAH...

Pro Tip: If you're attempting to get into this plan, and are 3.5 months back on your bricks, don't go out and waste a car salesman's day pretending that you can buy a car.

[kerosene]

Originally Posted by lumberjim

YEAH...

Pro Tip: If you're attempting to get into this plan, and are 3.5 months back on your bricks, don't go out and waste a car salesman's day pretending that you can buy a car.

Hahahaha

[classicman]

Still Confused by Whether the President’s “Making Home Affordable Plan” Will Help You?

If you’re like everyone else in America, you’ve probably heard about the President’s recently unveiled plan to help millions of homeowners to refinance or modify their mortgages.

However, despite plenty of news coverage, many Americans (and even a fair share of mortgage lenders and financial reporters) are still scratching their heads over exactly who the plan is for and how it works.

What Exactly is The Obama Housing Plan and Does It Benefit Me?

Link
More of an FYI than anything else.

[xoxoxoBruce]

Originally Posted by classicman

Link
More of an FYI than anything else.

Not mine, I don't have a mortgage, but thanks.