In the wake of the recent lending industry crisis, President Bush announced this morning, from the Rose Garden and reported by AP, that the United States Government would be their to assist homeowners.
This government relief could save thousands of families who may be in financial crisis due to rising interest rates and increasing payments. The aim of the plan is to keep homeowners in their home but this is not a sugar coated solution. The assistance will not be direct, “It’s not the government’s job to bail out speculators or those who made the decision to buy a home they knew they could never afford” but President Bush did go on to say “Yet there are many American homeowners who could get through this difficult time with a little flexibility from their lenders or a little help from their government”.
President Bush and the Federal Housing Administration will launch a program called FHA Secure where borrowers with good credit history will be able to refinance their current mortgage into one secured by the FHA. Here are the highlights from the White House’s Fact Sheet.
1. The President Calls On Congress To Pass Federal Housing Administration (FHA) Modernization Legislation.
– The Administration Will Also Launch A New FHA Initiative Called “FHA-Secure.”2. The President Calls On Congress To Change A Key Housing Provision Of The Federal Tax Code So It Does Not Punish Families Who Are Forced To Sell Their Homes For Less Than Their Mortgage Is Worth.
– The President Is Working With Congress In A Bipartisan Fashion To Make This Important Change.3. The President Announced That The Administration Will Launch A New Foreclosure Avoidance Initiative To Help Struggling Homeowners Find A Way To Refinance.
Though this plan will be able to help many avoid foreclosure it does not help everyone. The reason why there was such a boom in the mortgage industry is lenders loosened restrictions making it easier for people with low credit scores and shaky payment history to get financed. Those are the same people who could greatly use the refinancing assistance offered by the government but like any refinance option a homeowner has to qualify.
President Bush also mentioned taxes, “Let’s say the value of your house declines by $20,000 and your adjustable rate mortgage payments have grown to a level you cannot afford,” Bush said. “If the bank modifies your mortgage and forgives $20,000 of your loan, the tax code treats that $20,000 as taxable income. When your home is losing value and your family is under financial stress, the last thing you need to do is to be hit with higher taxes”.
By offering a plan for refinancing options as well as some tax relief President Bush hopes to stabilize the financial and real estate markets and avoid a reoccurrence of this problem. But if lenders do not re-evaluate lending practices, which they are forced to do now, and make them better in the future this problem could manifest itself all over again.
Learn about FHA secure mortgages from the FHA Secure experts today. |
57 Comments
To me this is great except for one part. It is the middle class and those with not so good credit pay history that need it the most. No matter what their history is and even if they made unsmart decisions in their past. How about helping those who really need help. Those that have a good pay history most likely knew what they were doing when they took the ARM mortgage while most of the others were promised low payments and when you have little that misleads you. Thank you.
I 100% agree Sherleen, families affected the most by ARMs are in greatest need of assistance than can be provided by the public financial market. The last thing the US real estate/financial lending industry need is many, stressing the many, homeowners defaulting on mortgages due to rising interest rates, especially if there is a possibility of refinancing into a fixed.
Massive defaults in the US economy would be catastrophic and Barnett Associates Real Estate, LLC has found, from working with families throughout Snohomish County, is that the biggest reason for selecting the creative financing plans was to enabled them to purchase closer to their financial limit was to gain more home for the family. This goes back into your point “helping those who really need help”. The US was founded on the middle income being able to afford items that where once considered luxuries, cars, homes etc.
Another key area you touched on was people were promised lower payments and didn’t really know what there were ultimately getting into. The thought of increasing mortgage payments never dawned on the mortgagee. To me this points out a flaw that which demonstrates a major lack of integrity as well as oversight on the lending industry. Predatory lending practices fueled an unstable national market but has also given light and hopefully provides solid ground work, which I hope FHA Secure accomplishes, to create a more stable and credible lending industry.
I am a libertarian so it makes me leery every time I hear about the government getting involved in our private lives. Government should secure our boarders, protect our citizens, and manage national emergencies and that is all. Now that we have an emergency, it is time for the national government to help out a little and then get out. The mortgage crisis we are in is a direct result of greed on Wall Street and has nothing to do with our current administration.
This being said I, like many, have gotten into a mortgage with an attractive rate and an adjustable feature. The Bush administration did not make me sign the papers. I did this on my own. Now that a refinance is eminent, I am glad that there are options out there. I found a good site to get information on whats up over the weekend. Go to fhasecurehomeloans.com. It has the president’s message and information about who qualifies for the new guidelines. It looks like I qualify and I am considering taking out a 30 YR fixed rate. I will advise on how it goes.
Thatswhatsup, let us know how the program works out for you be it will be interesting to learn how easy/difficult to qualify for the FHA Secure plan.
What also has interested me regarding the government’s move into the mortgage crisis is if this move is just a political ploy to get the Repulican Party into the publics good graces prior to up-coming presidential election.
Another item to directly on topic is what will the FEDs decisions play into helping to correct the situation. Bernanke is going to have really tough decisions to make in the near future.
Hey, all: The FHA Secure program is not available right now. As I understand it, it will be some time before lenders will even have it available unless there are emergency measures taken. Are emergency measures necessary in this market? My opinion is, Yes! There is a large number of good, honest, bill-paying folks out there who because of declining property values simply cannot refinance because their equity is gone and now they owe more than the home is worth. Those folks desperately need help and with the tightening guidelines, and lenders are unable to do it because the investors cannot justify purchasing the notes on the secondary market. It is affecting all of us. Homeowners, lenders, home improvement contractors, new home starts, the economy! To repeat a mantra from years past, “It’s the economy, stupid!”
This is how I see it. There are people out there that are in very bad situations with their mortgage. Some of them are facing foreclosure because the rate has reset and now they can’t make the payment. Banks are going out of business left and right. These are things we all know. However, I believe there are several groups of people to blame.
1. The borrowers are somewhat to blame because as a previouse commentor stated, no one forced them to sign the mortgage papers. They did that of their own volition. If they did that without reading what they were signing then shame on them. However I feel this group bears the least amount of blame. Other people probably did not give them all of the facts at signing.
2. Mortgage Originators/Loan Officers are also to blame. It seems that over the last 5 years there has been a flood of new loan officers entering this field with absolutely no training other than how to “upsell” the borrower to a larger loan. I know this has happened because when I entered the industry 5 years ago that is about the only training I received. This mentality has led to an attitude of greed in seeing just how much money can be made on each loan by the originator. This greed led to borrowers being put in mortgages that, on paper, they could afford but in the long run were unaffordable. Thankfully, the distress of the mortgage industry will in my opinion lead to the “occupational demise” of these “bad” loan officers. Hopefully, every state will take the action that my state has recently taken and begin regulating loan officers and requiring continuing education so we can prevent any more “bad” loan officers from getting into the business.
3. I believe the lion share of the blame falls with the mortgage banks who did not use common sense underwriting in approving these loans. The borrowers should have been qualified using the rate after the reset so that we would not have the problem we have now.
Having said all of this, I believe the FHA Secure program is a much needed program to help our nation and our economy get through this suicidal maze we find ourselves in. True, not all of the borrowers affected will qualify but at least it will help a portion of the people affected. At this point, any relief we can get is very welcome.
I reviewed the criteria for this new program and do not see anything in there that is different from a regular FHA loan. Where is the help for those people that are facing foreclosure now that are 60-120 days late on their current loan and could use a deferment of payments or refinace into lower fixed rates with little to no closing costs? The problem is the govenrment doesn’t want to help the sub-prime consumer they want to help the family that hs a good payment history and can get into a fixed rate program easily. Any mortgage broker that looks at the program guidelines will laugh and say they can get people approved in a conventional loan under the same guidelines and without a heavy PMI payment. So what is the true use of this new program? Why doesn’t the government help those people truly facing foreclosure now?
Thanks for the in depth comments Jhenia, Don Draughn and Steve Felt. It seems there is a general consensus around the problem and who could really benefit from the government assistance.
It seems the government is going to take a look at the current FHA program and see where the can “modernize” it but that says nothing to the fact that everyone will have access to the program. People facing foreclosure, for the many reasons listed above, may not be saved even if the government does do something with the FHA Secure program.
It would be beneficial to the economy right now if the government did go as far as helping all those in need with a plan that allowed them to refinance into a fixed rate over a longer period of time, more than the traditional 30 year. It would help reduce the monthly payment enough so people can keep their home. Then after a period of time, hopefully, they would be able to refinance again into a more traditional rate.
I have read all the point stated here and I agree with you, if this program is not going to help the people who are in dire need then the home loan industry is going to find itself back in this position again.
The people who need the help are the ones who don’t have good payment history becuase for some reason or another they found themselves in a situation where what seemed to be okay at first turned out to be a total mistake. So now they find themselves struggling to make the payments and know where to turn becuase as usual the only people who get the help are the people who have the best credit, and not the ones that are trying but seem to fall short.
Monsherry, I went and looked at the government’s sites today and still have not noticed anymore news regarding the government’s position. Legislation is probably still being looked; hopefully we here soon so we can all start evaluating the impact the new policy may or may not have.
But after reading a release this struck me; President Bush said he was “[updated] on the strong fundamentals of our nation’s economy”. I would hope to think that our President already understand the “fundamentals” of our nation’s economy.
Has anyone heard of any lenders offering the FHA Secure program yet? I have jeard rumors that they are out there, but I can’t find them anywhere.
In the interest of full disclosure, I am a mortgage broker and am qualified to close FHASecure refinance transactions. That we know of, we are the only lender getting referrals from HUD. There are several facets of the program which are just now coming out. It’s true that FHASecure allows borrowers who are in an ARM to refinance if the adjustment occurs between June 2005 and December 2009. If you owe more money on a home than it is worth, you can still refinance with FHASecure. FHA will allow a lender to hold a second behind an FHA loan with no restrictions on Combined Loan to Value. This will allow lenders holding bad paper to short pay some of the debt, but get repaid most of the debt through the refinance. All homeowners have to do is negotiate with their current lien holder who should be more than happy to entertain this type of transaction. If folks want to learn more, they can go to our web site.
Toby the question is; is this loan just for people with good credit and good payment history? I myself have been having trouble keeping up with the increasing payments of my home loan, and having falling behind. How does the FHASecure loan help those who aren’t in the so perfect caterogy?
Sorry, the comment just posted is for Chiph. Chiph you could explain how this loan helps people that are in dire need that would be wonderful
I have not heard of anyone actually offering the services but as Chiph said he could. But I think we are still wondering if: the plan is only going to going to help a select few. In my opinion, having the ability to offer the services to a wider range of people would only benefit the national economy.
This loan is for folks with a checkered credit history if they qualify under the following conditions: 1. Non FHA adjustable mortgage which adjusts between June 2005 and Dec 2009 2. Debt ratio at 43% (there are exceptions even in this area) 3. Have provable income( ie W2 or tax returns) 4. Clean credit and mortgage history 6 months prior to the mortgage adjusting. 5. 3% equity in the home. Even in this instance, you can negotiate with your current lender to short pay the lien to make the refinance work.
Monsherry can go to our web site for a free evaluation or to chat about specific needs.
So, Chiph: Congratulations on cornering the internet interest in FHA secure with your website. Very shrewd. I see some contradiction in line item 5 – 3% equity position. Herein lies the problem. In California, many folks are simply upside down. Are you saying they can renegotiate their 1st like a “short sale” thereby procuring a 3% equity position and then refinancing that 1st – subordinating it to an existing 2nd with FHA Secure???
There is no contradiction. You have the right idea. If borrowers can negotiate a short pay off with the current mortgage company in the loss mitigation department, they can create the 3% equity. Many mortgage companies would rather have some form of repayment rather than taking the property back. Depending on the negotiation with the current lien holder, the second can be held with either the current lien holder or another 2nd. We do not know of a lender who would execute a stand alone 2nd at this time. FHASecure has no CLTV restrictions.
I think all of your comments are very informative, however as a family that is being directly affected by this situation it is important to remember that there are many circumstances that have caused this. Our situation was very unexpected. We purchased a home in a very rapidly growing area in Florida which took a year and a half to be built. During the time that we were waiting for the home to be built our employment situations changed and we had decided that it would be best to stay in the area that we were currently residing. Therefore when the house was completed and we signed the mortgage we agreed to a 2 year ARM. We did not think that there would be a problem because Real Estate had been booming in the area and then the bottom fell out from underneath us. We had our home on the market for two years and nothing!! Then in January 2007 our mortgage rate went from 5.75% to 8.75% and increases 1/2% every six months until it caps out at 13.75%. As you can imagine this hit our pockets hard, not to mention the unstable and increasing cost of fuel for our commute. We could pay another mortgage with what we pay for fuel and we carpool!! So now this is where we are. We tried to refinance our ARM but were told that due to the rapidly declining property values our LTV would be to high. So what do we do now? Before this we had a good pay history for our mortgage but in the recent months since our second rate increase we have been over 30 days three times. I do not consider myself “stupid” and yes I am the one who signed the papers but I did not expect the bottom to drop out from under us so fast!
Concerned Consumer
The goal of this loan is to alleviate the financial burden of the 240,000 home owners who signed an adjustable rate mortgage a few years ago. It sounds like you may qualify. Borrowers can refinance into a reasonable fixed rate and include closing costs, arrearage, escrows, pre payment penalties and purchase money second mortgages. Any problems stemming from the mortgage adjustment on the credit report will be overlooked as long as there is a clean history six months prior to the onset of the adjustment.
I feel for you and your family. It is a rough time in many different real estate markets and Florida is probably the worst. You can negotiate with your current lender to “short pay” the pay off in order for you to refinance with FHASecure. If they do not go for this alternative, ask them to short pay a lesser $ figure and hold a second in order to make them whole. FHA does not have any restrictions on Combined Loan to Value, so you can have the current lender hold a second mortgage for more than the home is worth. Rememeber that every disadvantage can also be used to YOUR advantage. The lender knows you are in a declining market and does not want to take the home back through foreclosue. Negotiate with them and see what they say. If you need help with this just go to our web site and chat with one of our mortgage professionals.
Hello Again,
I was wondering if anyone out there knows where a broker can go to learn how these FHA products work. I would be interested in being able to offer these to my clients as well, just like Chiph. Chiph all the info you provided has been great!
Sorry of this is off the topic a bit.
Yes. You can go to our blog. It is coming at us quickly, so try to keep up.
Chiph, do you have an update for us on the FHA Secure program?
The FHASecure program is up and running. We seem to be ahead of many other lenders in the industry and are on track to close the first wave in the next few weeks. Right now we are working off of the guidelines received in the FHA letter from HUD dated September 5th, which is linked on our web site. Right now we are underwriting based on the current loan limits, however, we are anticipating the implementation of the FHA Modernization Act which will change several aspects of loans FHA will insure. We understand this will significantly increase the loan limits FHA will insure in certain areas of the country such as California, New York and Florida. In addition, Freddie and Fannie conventional loan limits will also be enhanced. Stay tuned, the action is fast and furious.
A short note: We are in the process of closing the first five loans with FHA Secure this week. It has been much easier than we anticipated. There are many aspects to the guidelines which will surprise lenders and consumers alike. I will post the new, HIGHER, loan limits this week at this blog for those of you in CA who are interested.
I am very interested in receiving more information regarding the FHA Secure:payment Assistance
There is plenty of good information at the web site, http://www.fhasecurehomeloans.com. Also, if you would like to speak to an FHA Secure loan professional, find the toll free number on the site and call. I don’t want to waste too much space here advertising our services, but we have helped a lot of people who otherwise would not get a loan.
My fiance bought her new house with an A R M in early 2005, after we became engaged we secured a fixed rate mortgage 18 months ago. We forsaw what was going to happen to the market, basically the same thing happened in the early 80’s. Housing has its boom and its busts. When housing values are soaring and everyone has their head in the clouds they do not forsee job changes and that huge raise your “expecting ” was never in anyones mind but your own. It irks me to drive by a house and see 2 cars in the driveway that have monthly payments attached and the kids getting all the “in” electronics to entertain them. Now mom and pop are not making the house payment but still have the 2 cars and the kids are complaining about their outdated cell phones. I took a $20,000 a year pay cut 14 months ago but even at $24 an hour combined income we can still make our mortgage payments and live as comfortably as before.
I’m a “seasoned” real estate buyer with extremely good credit and job tenure however as I read & comprehend the FHASecure material the one item which makes this program mute is the 3% equity requirement. Most homes across the country have lost a minimum of 20% of their purchase price so there’s “no equity” or “cash equivalent” available to meet this minimum threshold requirement.
FHASecure just “window dressing” another successful Republican media PR campaign designed to try and help them out in the upcoming election…
I’m somewhat surprised about some of the comments about it’s not the governments responsibility to bail out the average American homeowner when not too long ago we (tax payers) bailed out the Savings and Loan industry to the tune of billions for bad real estate loans remember the “Resolution Trust Corporation” or RTC which liquidated all the properties for pennies on the dollar? We (tax payers) “paid market value” for all those properties and the government accepted pennies on the dollar to liquidate the portfolio so what’s the deal now? How come we (tax payers) cannot get the same consideration, no one is purposely walking away from their dream but rather being forced to leave but if given a “fair chance” many would “stand and fight” for their home…
P.S.
Neal Bush-yes, (GWB’s brother) owned one of those Savings and Loan located in Colorado which received $3 billion in taxpayer bailout.
Just curious Emmett, where did you get your statistics? You said, “Most homes ACROSS THE COUNTRY have lost 20% of their purchase price.” So, if I am reading this right, the entire real estate market has lost 20%? I would be interested in seeing the sources of your “research”. I believe you are wrong on several points and are more interested in making a political statement rather than giving a critical analysis.
In addition, if you truly have read AND comprehended the FHA Secure material, you would realize that any property which has experienced devaluation can STILL be refinanced. FHA Secure has no CLTV restrictions. I am sure as a “seasoned” real estate buyer you understand this aspect, right? You should stick to topics on which you actually have some knowledge.
Hi Chiph,
The operative word in my previous comment is “most”; of course there are some areas that have not experienced a 20% reduction, my current market information is gleaned from the many comments by the “National Board of Realtors” which track “National” home sales statistics…Are you a member of a Real Estate Board somewhere because if so “you” would have access to the “devaluation” data.
I’m not a “politico” interested in making a political statement just an “average American” who can think for myself and take umbrage with your comment about my feedback being a “political statements”, my comments speak the truth, do you know anything about the “Resolution Trust Corporation” or its’ role in the Savings and Loans “scandal”? If not, look it up…
In reference to my comprehension of the FHASecure program; I’m college educated and able to comprehend the English language fairly well so “you” might want to view the “current” FHASecure website http://www.fhasecure-loan.com the website indicates in the first paragraph the qualifications for FHASecure is:
1.) A history of on-time mortgage payments, etc.
2.) Interest rates must have or will reset between June 2005 and December 2009 3.)Three percent cash or equity in the home.
4.)A sustained history of employment; and 5.)Sufficient income to make the mortgage payments.
I don’t know your background but obviously comprehension of this subject matter is not your strong point, my information is supported by a respected “National Association” and “Government” sponsored website where do you get your information?
Show me some research where the statement above is not accurate- I’m only interested in debating someone who actually has some knowledge on the topic….
Come on guys lets no resort to insults. Like everyone here, I am very interested in this topic and am wondering how it is all going to pan out for the borrower.
I haven’t been up on the latest information, can anyone tell me if they have made it any eaiser for those who don’t have good pay history. My mortgage company has done some adjusting to my loan, but my interest rate is still at 11.25%.
Toby, I am glad you injected a ray of reason in this conversation. It is my goal to get accurate information out on this subject as well, which is why when people like Emmett insert distorted or wrong factual data it makes my blood boil. When people do this it prevents borrowers who are in need from seeking and finding assistance. Obviously Emmett has not read the details of the FHA Modernization Act and is writing from a partisan or anit-Bush point of view.
Corrections in your testimony are as follows:
1. You must have a history of on time mortgage payments 6 months prior to the reset of your adjustable loan. You can have late payments following the reset, so Emmitts report that you must have complete on time payment history is wrong.
2. Your loan must have reset between June 2005 and December 2009. True.
3. Three percent equity in your home. If Emmitt had bothered to read the entire set of materials on this subject, he would know that under FHA Secure guidelines FHA will insure up to 97.48% of a refinance transaction with no restrictions on the CLTV. This means that even the folks who have experienced some devaluation on their property can take advantage of this program. This means that Emmitts statement …”window dressing” another successful Republican media PR campaign…” ( nice use of grammar, no verb) is dead wrong. Sorry Emmitt, you are a political hack and are putting out ignorant propaganda which in the end will hurt people in need.
4. A sustained history of employment. True. However, FHA gives the most latitude in this area. I am closing a loan under FHA Secure guidelines this week where the borrower has been on the job for 9 months.
5. Sufficient income to make the mortgage payments. True. Those of us out in the mortgage world doing good business want to know that the borrower can repay the debt. This is the main reason we are facing a real crisis in housing today.
To answer your question, Emmitt, I am a mortgage lender. We bank FHA and construction loans. You are out of your element and are doing a disservice to honest people who are seeking help with one of the most important facets of people’s lives. Security is vital to those of us who work hard every day to improve the financial standing of the average American. All I ask is that you write accurately and concisely about subjects which carry such weight. It appears to me that you flippantly comment without concern for the impact your words may have.
For your benefit, Emmitt, you can go to our web site, http://www.fhasecurehomeloans.com, to find real answers.
Chiph I have a question for you my mortage adjusted for the first time in last year, but due to loss of income I was put a on what my mortgage company calls a repayement plan. They reported me behind every month for the entired time I was on that plan even though I caught my mortgage payment up in shortly after that. Does the FHA secure plan have any possible resolution or program for people in my circumstance, becuase according to my mortgage company I was behind six months before my adjustment.
Unfortunately this is one of the elements of the FHA Secure program that is inflexible. The problems that you encounter must be a direct result of the reset of your adjustable note. I feel for you and your circumstance. The best thing you can do for yourself is to work through the repayment plan, make 12 consecutive on time payments and apply for a refinance at the end of this time.
Haven’t checked in for a while but I am with you Emmett. I would much rather listen to a “seasoned” real estate buyer, especially one that is so ironic and such an independent thinker. I mean seriously, what about building 7? How could it possibly come down? I am trying to learn from some very intelligent people like Chiph. So from now on please let the grown-ups talk and navigate your way back to the Huffington Post or the Daily Kos. Thanks again for all the helpful information on the site.
I know that the FHA Secure Loan program will allow people to refinance there home even if the value has declined & they will allow the current note holder to reduce the payoff amount. But do you know of lenders that will lend on it? Even though FHA will allow you to refinance with a short payoff, the lenders I talked to will not lend on a loan like that….does anyone know a lender that will?
Yes, I do.
What company are you with?
I work with Americas Mortgage Broker and own the web site http://www.fhasecurehomeloans.com.
But something still confuses me about the FHA Secure plan is that aren’t there two plans still sitting in the Congress and nothing has been approved.
What I have heard is that the FHA Reform act is still being debated. However, the mortgagee letter announcing FHA Secure has happened. Most wholesale lenders, however, are not currently on board. They are trying to structure loan programs to fit within the FHA’s mortgagee letter introducing FHA Secure. BayBancCorp says they offer FHA Secure, but that is the only lender I have found on the West Coast that claims to write FHA Secure Products. Wells Fargo is considering it, but at this writing do not currently have the product rolled out. I’m anticipating more information as November rolls on.
The bill that is stuck in Congress, the Senate to be more specific, is the FHA Modernization Act. It passed with lightening speed through The House, but because of election year politics, it is mired in the Senate. My guess, and it is a guess, is that one party does not want the other laying claim, during an election year, on a bill with such far reaching benefit to voters. You can find more information at my blog at http://fhasecureblog.com. Currently there are several lenders accepting and funding FHA Secure loans. These lenders have the benefit of having the guidelines, so they can close and fund these loans with the knowledge that they will be able to bundle them to investors when the legislation is passed. My hope and prayer is that more election year politics do not interfere with what is good for average Americans. For more information feel free to go to our web site at http://www.fhasecurehomeloans.com and talk with us on live chat, email us or give us a ring.
Chiph, if you want to use links that is fine but please use them sparingly. It is customary for personal links to be associated with the authors name when filling out the comment info. Thanks for the information.
I just read that there is an estimate that the final bill could be infront of the President in 60 days. But it appeared to be speculation.
Indy Mac Bank is offering the FHA Secure loan program & they are on the West Coast too.
We just published a post on the release of FHA Secure, view post.
Unfortunately the FHA secure does not address those that have one loan with negative equity. While I think this is a step in the right direction move changes need to be made, espcially to loan limits. Here in Denver Colorado the FHA loan limits do not allow you to get much of a house.
This whole situation is unfortunate, but an example of the multitude of our citizens not usuing common sense. I have watched for years as I dressed in, lived & ate what I could afford, others credit credit credit and dress, live & eat to the sky. I am truly offended that these people who have had the luxury of being stupid are expecting to be catered to now that their delirious living has thrown them to the dogs. Why should the government or anyone else bail these idiots out, when people who lived wisely continue to live in their more reasonable ways? For the government thus the people to bail these people is a tremendous slap in the face to all the people in the country who have not tried to live above their means!!! These people who have lived above their means will continue to live above their means via government subsidy, and learn absolutely nothing. Where is the slap on their hand for doing wrong??? We have become a nation of wimps who refuse to speak the truth, and make others accountable for their actions!!! Hearing the truth about their financial behavior is the only hope of setting these people free. Any financial advisor will tell you that unless a person changes their spending habits, they will continue to have problems over spending. My question is how is this going to help these people learn, so they won’t require assistance again? And who pays in the long run for all of these irresponsible people being bailed out by the government anyway. Government is you & me, so ALL citizens will pay for the incompetence of these irresponsible people. How is that fair to the responsible people?
Well it looks like the increase in FHA loan limits will help you purchase a home in Denver today. I will agree with Carol M that there should not be a nationwide bail out. The market needs to correct itself, its only natural. Would the government bail out a bunch of gamblers in Vegas that put there money on the wrong horse? Don’t think so.
well the housing market we have a real unique situation we rented a home for 13yrs. then it went on the market so we decided to see if we could buy it this is when the fun ? beganno body could finanance us we did not have enough money down great credit.so the sellers who were also the landlords.found a lender who inlight of boring everybody said he could help us buy the home things progressed it took 6 months to get to escrow becuase we kept saying something is wrong with the loan yet he and the sellers assured us we just had cold feet and proceeded to sign the papers and buy the home. the first month the payment was principal only ooh they get you there . the second month tit became a negative arm.we didnt even know what that ment when I asked him what this wacked out loan was and his answer was this was the only way you can buy the house my next ? was we thought it should be our decision to accept this loan not yours his answer was o well.no we are in big trouble all from a greedy lying dihonest lender. what to do now any body???
Hopefully your credit situation is still good and if it is then refiancing would be an option. But this time conduct research and get recommendations from friends on a trust worthly lender. If you are in Washington State we could help point you to a reputable lender.
Kathy,
How long have you been in this loan? There are a couple of different approaches. First, is contacting your states’ Division of Real Estate and filing a complaint against the broker/lender for not disclosing all the information regarding your loan terms. Secondly, I would contact the lender and see what they can do for you…possibly converting your loan to a 30 year fixed. Lastly, you can look at refinancing depending on a couple factors i.e. home value, LTV, payment history.
What state are you located?
the first loan was in 2005 then the interest rates wwent crazy and we had to refinance so this loan now is up in about 4yrs. with a 3yr. penelty. we are in ca. we have no money to do a conventional loan . the payment would be more than we make. I did try and report him to the realator board yet the paper work you must list every word said between us and the lender and since it took 6 months yaeh right. did contact a lawyer and he said to get back the $20000.00we put down it would cost us about $20000.00 .the lender tells me to call back when we are in foreclosure and then maybe they might be able to help me. where to go now ??
HI,
I AM TRYING TO FIND ASSISTANCES IN REFINANCING OR A STREAM LINE APPROACH TO HELP IN SAVING MY HOUSE. MY INTEREST RATE IS 9.95 AND I NEED IT AT 5.00-6.00 SO THAT I CAN AFFORD THE PAYMENTS. I UNDERSTAND THAT THE GOV. WILL ASSIST BUT, BECAUSE I AM THREE MONTH BEHIND IN PAYMENTS THEREFORE MY CREDIT IS SUB-STANDARD! IS THEIR ANY PROGRAM THAT CAN HELP! I AM NOW BACK TO WORK! I AM ONE OF THE UNFORTUNATE PEOPLE IN THE CONSTRUCTION INDUSTRY THAT WAS IMPACTED DIRECTLY BY THIS COUNTRY ECONOMICAL SITUATION IN CALIFORNIA!
It is very refreshing to find other Mortgage professionals who care enough about their customers. Who will give good straight forward advice without any what’s in it for me. I applaud you for your helpful factual information. These nuggets of truth will save many people thousands.
It is pleasure to find the other mortgage professionals who care about their customers and don’t give the heck to what will they benefit. Thanks for the approach to help others.
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