I’d be curious to see local opinion’s on this one!
Poll: Should US Let Homeowners Modify Their Mortgages? The Obama administration's $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.
11 comments:
Well the way I see it is, When Obama Gave the banks money for a bail out the first time, this should have wipe out most of the peoples debt, since that's why the banks needed help... Now there getting more money to help let banks give loans to small business for job creation but yet we still have to pay back the debt... Now the thing that's funny is, china owns our debt and owns Fannie may and Freddie mac by buying the debt, from Fannie may and Freddie mac and now they will be getting the money instead of us, plus they get the interest...
But tho I can't afford my own house
becasue houses are still over priced for this area, If I were to have a house, I think yes we should be able to change our mortgage...
If you lost your job or only get reduced hours per week, what damn differance does modifing your mortgege make.
Two wrongs don't make a right.
You signed the mortgage, you should live up to your obligation.
Cry babies and government give-away programs are how we got into this mess to begin with.
Further bleeding heart liberal policies will only make things worse.
12:49- to some degree, you're right. But, as someone recently affected by a surprise lay-off, it's not that I don't want to live up to my obligation or that I don't think that I should have to. We bought a house at the low end of what our mortgage company approved us for- we're not one of those families that bought a $400,000 home that we now cannot afford. Ours was much less than $200,000. But with a surprise lay-off, we're going to be hurting this month- and for a few months to come, most likely. And, we don't have a lot of debt, other than house and cars. I paid for my undergraduate and graduate degrees- no student loans, grants, etc.
I think that the bail-out could have been handled better- I don't see any direct benefit to consumers in any way, shape, or form. Someone posted that perhaps a bail-out should have gone directly to the tax paying citizen. I know in our case, we would have used anything to pay off debt, put it in savings, or reinvested it in our house.
People complain about renters and talk about the need to increase home-ownership. Perhaps that's just lip service. The fact is, there are honest, hardworking families out there who have been caught in a situation beyond their control. It's not about people being free loaders or thinking they shouldn't have to own up to an obligation.
For what it's worth, I'd be willing to take a modification of having another year tacked on to my mortgage just to have several months of paying a significantly reduced mortgage in order to get things under control for us financially.
Oh- and since you have a negative impression of "give-away programs", I'm hoping that neither you nor anyone in your family has benefited from a PELL grant, financial assistance, employer assisted education, etc. Or any other tax cut such as live where you work, earned income credit, etc.
I hope no one in your family hits an unexpected bump in the road.
Personally I believe if you signed on the dotted line, you should be held to your contractual responsibilities. Yes, their has been a lot of turmoil in the market. But that gives way to opportunity. Housing rose much to fast(due to moronic federal legislation and immoral but legal loan practices). Fools rushed in. The reaction the market is having now is a good one.
If you can't afford to pay for what you bargained for then you should sell it and take the hit or let it go to foreclosure. When the market was going up no one had a problem buying and agreeing to pay for an over priced house. Now that the market is down you cry foul??? Prepare for the future people, don't bargain for something that you can not pay for if times get tight. And where is your savings account?? Savings, yes SAVINGS, that would be money that you didn't spend and you set aside for rainy days and the future, to get you through hard times like this.
I know the mentality of today's society, earn it and spend it...I deserve it. Well I have savings and I am self employed and I am worried about the future of my work but I do not have some astronimical mortgage payment because I did not continuously refinance and cash out to have money to buy more stuff. STUFF, people...stop with the stuff. I purchased a house in the year 2000 for what I could afford and never borrowed more against the original purchase price. So get this...I actually have equity in my home.
Please stop the whining and looking for hand outs from the Nanny government. My daughter is in college and do you know who pays for it? Me. From my savings. To answer the question, No. No modifying your mortgage. If you need to renegotiate then refinance the balance that you owe. No program should be put in place to help people who make poor choices....we already have enough of that.
It depends on what caused the foreclosure.
If it's someone who lost his/her job due to the recession and would othewise be financially sound then they should get the assistance.
If it's someone who bought a 500K house with ARM and who makes 25K a year, then they should go into foreclosure. They need to pay for their own stupidity.
1:21 - Hear Here. All good things in life are never easy. You are seeing the ramifications of over-inflation. Its all relative.
MANY of the families now finding themselves in mortgage trouble put THEMSELVES where they are.
I get so tired of hearing about people who didn't bother to think ahead when they bought their homes in an inflated market for ridiculous terms and now they cry the blues!
When my husband bought our "affordable" home last year, we didn't just look at what we could afford then, we asked ourselves if our payment was sustainable! We did it so that even if one of us lost our job or was out sick for some reason, the other salary would still be able to pay the bills. We planned AHEAD! We paid off ALL of our credit card debt BEFORE we started looking for a house. We decided that a house was more important than whatever we were buying on credit cards. Once that was done, THEN we started looking at buying a home.
Now I know there are those who have been in their homes for a long time and maybe due to unemployment (something not preventable) are in a bind. For THOSE people, maybe we should look at doing something.
For those who just outright overspent themselves, NO NO NO!
You put yourself there and as the saying goes "you made your bed, now lie in it!".
I have mixed feelings on this. I agree with those who said the ones that bought a house they couldn't afford should not get bailed out. There are alot of people that didn't over spend but due to the recession are having a hard time. It is no fault of their own they are in the shape they are in. There is just no work to be found. Those are the ones that need the help not the ones that have these huge house payments.
Speaking for my own situation. I purchased a home well under market value at the time I bought it in 2005. Soon after my son was Dx'd with autism (caused by vaccines, and YES I have the proof) and insurance would not cover any of the treatments that actually worked to recover him, net result a 38K loan to cover the expenses. In June 2008, both my wife and I lost our jobs within a week's time. I found work after 12 weeks. My wife has yet to find another job as a teacher. My pay was cut 15% within 8 months of my new job.
Anyhow, I applied for help on both my first and second mortgages. The second mortgage help was approved fairly quickly, about $70 per month reduction for 5 years. I'm in the middle of a workout situation on my First mortgage right now. If all goes through, this will result in about $130 per month reduction.
It is my understanding that this gets tagged back on at the end of the loan. So why is everyone making such a fuss over anyone getting assistance that is only a victim of the times we live in, especially since I'm payint it all back. I've even started a small busines of my own amidst all of this bad economy and losing over 40K a year annual household income.
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