Question About New Housing Bailout Plan

[barkingowl]

On a side note...GMA had an "example" couple on the show yesterday that supposedly had a $107K mortgage, and their payment was reported to be $2k per month???????

I have some friends that have a mortgage like that. Their problems started in the early 90s when they invested in a business & it went belly up. Instead of declaring bankruptcy they opted to pay the debts owed as they could. As a result their credit rating went into & has stayed in the toilet. I think their interest rate was 14% on a $120k house. They recently got a refi that lowered the rate to 10%. Still not a good rate but better than the original one. Their monthly payment at 14% was $2k/month.

[monet861]

I think that is part of my biggest issue with this whole thing. The other is like what was stated earlier: The people that know how to use the system, will make out big time and the people the deserve the help will reap little or no benefits.

[Lostinoz]

I just hate that my 2 year old (she has no idea what is happening with all this) will have to suffer through the consquences of this. To be absolutly fair every tax payer should get the same amount of $$. If in a year someone is still going to lose their house, then maybe they should get something smaller and less expensive. My wife and I bought our house 6 years ago. We very easily could have afforded something twice as much and gotten some stupid loan. Instead we found something nice that we would be happy with and got a great fixed rate. So because we made sound choices, I get to pay for people that did not and in the process watch my 401K get chopped in half. Worse yet my daughters 529 college plan down 42%. This country (and there are few more patriotic than me) has gotten ridiculous. I do understand that there are some hard times for people out there, but it does really bother me that my smart financial decisions will just screw me over.

And I see the suffering out there. I work in a fairly small town and my staff went from 47 to 12. Throughout the company (9 branches in the Carolinas) there have been many jobs lost and hours and pay cut. It is hard out there, but giving to some and taking from others is not a fair way to do things. I know "Life Ain't Fair". .02

I don't know if this applies here or not, but when my kids were little I did not MAKE them share their toys with others. I realized that I would be resentful if someone told me I had to "share" my stuff with others. I DID explain the consequences of not sharing their toys, specifically that others may not want to play with them and because of this, they usually CHOSE to share their toys. Today, I have some of the most giving children I have ever known.

I guess the point is that being FORCED to help or "share the wealth" with others takes away all charitable feelings and causes resentment to build.

I do have sympathy for those who have fallen on hard times, but it should be my choice of whether or not I want to help them out. The government is like my parent telling me I HAVE to share my money with them. No, it isn't right or fair and no, LIFE is not fair or equal. I believe this is what freedom is all about, the ability to make our own choices. Some choose more wisely than others and some have hard knocks along the way.

I agree with you that this is totally wrong, however I just got up and am probably not making any sense. :D

[monet861]

I just hate that my 2 year old (she has no idea what is happening with all this) will have to suffer through the consquences of this. To be absolutly fair every tax payer should get the same amount of $$. If in a year someone is still going to lose their house, then maybe they should get something smaller and less expensive. My wife and I bought our house 6 years ago. We very easily could have afforded something twice as much and gotten some stupid loan. Instead we found something nice that we would be happy with and got a great fixed rate. So because we made sound choices, I get to pay for people that did not and in the process watch my 401K get chopped in half. Worse yet my daughters 529 college plan down 42%. This country (and there are few more patriotic than me) has gotten ridiculous. I do understand that there are some hard times for people out there, but it does really bother me that my smart financial decisions will just screw me over.

And I see the suffering out there. I work in a fairly small town and my staff went from 47 to 12. Throughout the company (9 branches in the Carolinas) there have been many jobs lost and hours and pay cut. It is hard out there, but giving to some and taking from others is not a fair way to do things. I know "Life Ain't Fair". .02

[David M.]

I wonder if that's what was left on the note, or the total amount financed? That would have to be one of those variable rate things for it to be that high! That's a killer of a payment (in the bad sense).Ouch! What did they do, buy it with a credit card?!?

[snal]

I've watched several "example" interviews with homeowners, most had 2 bread winners, and both had lost their jobs.
I'm not seeing that kind of job loss in my area, but I don't doubt that it's happening.
BUT...how would a lower interest rate help someone that hasn't had any money to pay their mortgage since September of 08? I can see how refinancing would start the whole foreclosure schedule over again, and buy them some time, but if they have no money...they have no money!

On a side note...GMA had an "example" couple on the show yesterday that supposedly had a $107K mortgage, and their payment was reported to be $2k per month???????

[beebopcop]

I am curious if I am the only one listening to this hogwash about how this housing mortgage rescue is for everyday people like me, who played by the rules and yet unfortunate circumstances dictate they are now losing their home? Am I the only one who thinks it is hogwash?

Honest opinions are requested because I fear I am becoming so bitter about all of this that perhaps I am missing the actual truth. :(

No, you have not missed anything. It is trully wet pork:mad:

[Visinedrops]

If you purchased a home within your means, you don't need a bailout;)

The 'blood money' is actually devaluing our dollar. Deflation is happening NOW, inflation will come :eek:

When the dollar is no longer backed by precious metals... it don't mean a thing :mad:

Better invest in preps while you still can... Con the seller into taking your worthless dollars while he thinks it means something...

We ain't hit the bottom yet folks :rolleyes:

I agree with all of this, but especially the parts in red. With deflation, you will be able to buy more, which isn't always a good thing. The people who use credit cards as their primary means of payment will look at the deflated prices and feel they can afford to charge more. This will result in the same problems that are happening now when the prices and interest rates climb back up again.

Going toward preps, right now it is a great time to buy whatever you can, because soon your money won't be worth near as much. Over deflation in the market will cause more manufacturers to lose money, and some will go defunct. When that happens, the value of the dollar will be diminished, and prices will skyrocket. Your money will be worth almost nothing because nobody will be willing to take it in exchange for a product.

[Zombie Axe]

If you purchased a home within your means, you don't need a bailout;)

The 'blood money' is actually devaluing our dollar. Deflation is happening NOW, inflation will come :eek:

When the dollar is no longer backed by precious metals... it don't mean a thing :mad:

Better invest in preps while you still can... Con the seller into taking your worthless dollars while he thinks it means something...

We ain't hit the bottom yet folks :rolleyes:

[David M.]

I think it's all blood money. It will ultimately come off the backs of our children and grandchildren. Money borrowed or printed is not money saved. I'm afraid it will be the demise of our country.

[Brosia]

yes, sorry, I re-read your post. In which case, I'm glad you aren't having problems with your mortgage.

It sounds good on paper, but in reality, will it help? One hopes so, for the sakes of the everyday people who did the right thing.
But it's also going to help those shlumps who bought a bigger house than they knew they could afford, and now they are getting bailed out, just like the greedy bankers. Nobody will learn the lesson, and history will repeat itself.

[Lostinoz]

I am sorry to hear that.

maybe this bill will help you. supposedly, you can get your interest rate lowered, your monthly payment lowered, or refinance if you owe more than your house is worth.


Lots of news stories out there that people are telling the mortgage company to produce the actual, signed note before they can foreclose, and because so many of these notes are sold and bought between banks, the original, signed note is lost and cannot be produced.

I wouldn't play games, go talk to a responsible, honest banker (is there such a thing?) about your options.

Brosia, bless your heart! I think I phrased my question wrong and I tend to do that when I am aggravated with politicians. :D

No, we aren't having trouble with OUR mortgage.

From the start I thought this whole thing was because of people buying more house than they could actually afford, ARMs, greedy bankers, etc. Today, I have been listening to them "sell" this plan to the public saying that this new package is FOR the everyday people who have recently lost their jobs, etc. Laying it on really thick about how it is ALL for the people who are/have been responsible and due to circumstances beyond their control, they are now losing their homes. How these poor unfortunate people were taken advantage of by greedy loan officers, etc.

Maybe I am just becoming too cynical with my thinking. It just seems to me that whenever the government is handing out money, it goes to those who know how to take advantage of programs. :(

[Brosia]

I am sorry to hear that.

maybe this bill will help you. supposedly, you can get your interest rate lowered, your monthly payment lowered, or refinance if you owe more than your house is worth.


Lots of news stories out there that people are telling the mortgage company to produce the actual, signed note before they can foreclose, and because so many of these notes are sold and bought between banks, the original, signed note is lost and cannot be produced.

I wouldn't play games, go talk to a responsible, honest banker (is there such a thing?) about your options.

[Lostinoz]

I am curious if I am the only one listening to this hogwash about how this housing mortgage rescue is for everyday people like me, who played by the rules and yet unfortunate circumstances dictate they are now losing their home? Am I the only one who thinks it is hogwash?

Honest opinions are requested because I fear I am becoming so bitter about all of this that perhaps I am missing the actual truth. :(