Author Topic: housing problems (Read 1653 times)

videoholic · « **on:** February 16, 2009, 09:38:56 AM »

OK, under this Obama plan to deal with foreclosures, do I get anything?

Say you have a 300k house that is now worth 200k. They are now letting you refi at 200k and I guess the government is going to eat the 100k? Am I reading this stuff right? And this is only for people that are possibly going into foreclosure?

Here\'s my question. Say I have 450k financed and right now my house is worth 375k. If I can pay my loan at 450 ok with my current job situation, am I not allowed to tell the government to eat my 75k? Why not? If this is true, then we are again penalizing the people who are budget conscious and rewarding people who got in over their heads.

There is nothing wrong with the housing market dipping below what you paid for the house originally. It\'s only a problem if you could never have afforded the house in the first place. If you can\'t ride it out, then you should have never bought. So let\'s reward you by giving you a free ride.

http://www.msnbc.msn.com/id/29185060/

« **Reply #1 on:** February 16, 2009, 11:00:13 AM »

Honestly, that\'s a legitimate question and you should let us know what you find out.

Without knowing the ramifications, I\'d think that it should be ok to refinance people\'s homes for the new, lower amount, stopping short of issuing a credit, like if you\'ve already paid $400k and your house is now $375k. Kind of a "prior purchases excluded" exception.

But what\'s the goal here? To get cash flowing back into the system by lowering the payments on those who are not paying? So, you might be out of luck. That\'s annoying because some people who don\'t make a lot of money will keep a house bigger than they might otherwise have afforded.

Letting someone in your situation get a deal wouldn\'t help the economy or help people keep their homes, which is the point I suppose.

« **Reply #2 on:** February 16, 2009, 11:05:13 AM »

We\'ve been rewarding everyone lately for making bad decisions. Seems to be the theme of the past year.

Viper_Fujax · « **Reply #3 on:** February 16, 2009, 11:28:38 AM »

it\'s the quick, easy, short-sighted fix..isnt that the government\'s job?

« **Reply #4 on:** February 16, 2009, 01:39:08 PM »

Quote from: Viper_Fujax

it\'s the quick, easy, short-sighted fix..isnt that the government\'s job?

Not according to the constitution. Quick fixes = bigger problems down the line.

clips · « **Reply #5 on:** February 16, 2009, 02:06:32 PM »

Even tho i agree that the interest rate should be adjusted for those folks to avoid foreclosure, i agree that there should be something there for the folks that took on their loans responsibly...i purchased my home back in 05 and the folks i was dealin\' with even asked me about that interest only loan, in which in gave them a firm "no".

There\'s no easy answer to the housing problem or even the economy for that matter. The only other option is to just let everything collapse, and i\'m sure nobody wants that....well there a few that still say that the economy will fix itself, but those are the same folks that are out of touch with reality and can probably weather a full break down of the economy....the u.s. in this day and age cannot afford a full breakdown of the system.

Viper_Fujax · « **Reply #6 on:** February 16, 2009, 03:01:32 PM »

Quote from: Mr. Kennedy

Not according to the constitution. Quick fixes = bigger problems down the line.

sarcasm doesnt transfer over well on the internet

ma\' bad

« **Reply #7 on:** February 16, 2009, 07:33:22 PM »

I wasn\'t neccasarily pointing that comment at you, just washington in general.

CHIZZY · « **Reply #8 on:** February 17, 2009, 05:57:35 AM »

that bitch Suze Orman was ranting about this exact thing, and the answer is:

if you can afford your payments, and you are not behind, no refi...so it then becomes worth it to default, and let the bank foreclose....why pay on a $400k mortgage when your house is only worth 200K? throwing money down the drain...thus continues the housing spiral. forcing people who did everything right to foreclose.

luckily for me, houses in Buffalo were never worth shit, so property values here are unchanged.

videoholic · « **Reply #9 on:** February 17, 2009, 06:08:43 AM »

wow. Aren\'t there repricusions to letting forclosure? Seems like you\'d have bad credit

clips · « **Reply #10 on:** February 17, 2009, 06:44:49 AM »

Quote from: videoholic

wow. Aren\'t there repricusions to letting forclosure? Seems like you\'d have bad credit

Yeah...i agree....those folks whose homes have gone into foreclosure have a credit score that is going to be incredibly hard to recover from. Next time they want to get a car or anything dealing with credit, their interest rate is going to be thru the roof. It\'s absolutely not worth it and a bit idiotic to let your home purposely go into foreclosure.

It really is more about saving the economy than it is to actually helping these folks out, again the main point is to get money flowing thru the system again...and i hate to sound like a broken record, but with the billions that most banks have received already, i believe that they can afford to take a hit on the bad loans at a lower rate.

CHIZZY · « **Reply #11 on:** February 17, 2009, 09:33:35 AM »

of course there are repercussions, but to some people, they\'re worth it, so that\'s the problem. It only takes 8-10 years to recover (partially) from bankruptcy, so to some people that\'s worth not throwing their money down a hole....it\'s also a mob mentality...everyone else is doing it, so there\'s no stigma anymore....

« **Reply #12 on:** February 18, 2009, 07:26:52 AM »

I\'m same as you chizz... housing values in my area are nearly unchanged over the past several years. I had another appraisal just recently as I was thinking of doing a refi and it was appraised for about the same amount as when I bought it... which is luckily much more than I paid for it.

So many people are "upside down" now with their mortgages its ridiculous.

« **Reply #13 on:** February 18, 2009, 11:00:17 AM »

I\'m trying, but I don\'t really understand this stuff. Vid, does this help you? From Anderson Cooper\'s CNN blog today:

Quote

2. I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

3. How do I know if I am eligible?
Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

http://ac360.blogs.cnn.com/2009/02/18/qa-on-the-foreclosure-plan-and-what-it-means-for-you/

videoholic · « **Reply #14 on:** February 20, 2009, 05:22:49 AM »

http://www.youtube.com/watch?v=bEZB4taSEoA

Finally someone saying exactly how I feel.

Hello

Author Topic: housing problems (Read 1653 times)