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Thread: Obama administration to order lenders to cut mortgage payments for jobless

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by phattonez View Post
    So you're really going to tell me that people didn't know what they were getting themselves into? They didn't know the risk with adjustable rate mortgages? Come on. People are not stupid.
    That is totally wrong....... a vast majority of people that buy homes are stupid, they don't bother to research the investment before they make, what could arguably be, the biggest expenditure of their life. How is that not stupid?
    There is no such thing as a “Natural Born Dual-Citizen“.

    Originally Posted by PogueMoran
    I didnt have to read the article to tell you that you cant read.

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by Catz Part Deux View Post
    One thing I've seen happen in my area is that people are trapped. There have been cuts in local companies (job losses), and people can't find a new job and can't sell their house for what they presently owe. So they are stuck.

    In other cases, they were transferred for work, and can't unload their house. I'm glad I have no reason to need to move and I'm not upside down because I'm pretty conservative financially. I owe a lot less than my house is worth, even though it's worth less than it was at the top of the bubble.

    The thing is...a lot of lenders haven't really tried very hard to work with people so they could stay in their homes. Particularly people with ARMs and balloons are in a world of hurt. The more lenders can be encouraged to help keep people in their homes, rather than foreclosing, the less the market deflates.

    Oh there are definitely people down on their luck.

    I'll disagree with the banks not working w/people. Short sales are often the first step, and the whole premise of the short sale is the bank forgiving the part of the debt that cannot be recovered through sales since the FMV is much lower now than time of purchase (Glinda's property would be a prime example of a house that would likely be a short sale since she bought at top of the market and made improvements). Banks will eat a heck a lot of the loan with a short sale and the homeowner avoids foreclosure.

    Quote Originally Posted by Harry Guerrilla View Post
    I would but I'm short about $7k on the down payment.

    What are the benefits of a realtor?
    Haven't explored that aspect yet.
    Quote Originally Posted by soccerboy22 View Post
    You guys are weird.

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by Catz Part Deux View Post
    One thing I've seen happen in my area is that people are trapped. There have been cuts in local companies (job losses), and people can't find a new job and can't sell their house for what they presently owe. So they are stuck.

    In other cases, they were transferred for work, and can't unload their house. I'm glad I have no reason to need to move and I'm not upside down because I'm pretty conservative financially. I owe a lot less than my house is worth, even though it's worth less than it was at the top of the bubble.

    The thing is...a lot of lenders haven't really tried very hard to work with people so they could stay in their homes. Particularly people with ARMs and balloons are in a world of hurt. The more lenders can be encouraged to help keep people in their homes, rather than foreclosing, the less the market deflates.
    The problem with that is if lenders let people stay in the homes when they can't afford the payments, they can't afford the rent either.

    Lenders are much better off short selling the house or foreclosing. In both instances they can resell the home and charge the loss back to the borrower.

    An other big problem with letting people stay without paying is, they tend to tear the home to pieces.. they don't do maintenance and in most cases, strip the home of everything including the kitchen sink.
    There is no such thing as a “Natural Born Dual-Citizen“.

    Originally Posted by PogueMoran
    I didnt have to read the article to tell you that you cant read.

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by Catz Part Deux View Post
    The thing is...a lot of lenders haven't really tried very hard to work with people so they could stay in their homes. Particularly people with ARMs and balloons are in a world of hurt. The more lenders can be encouraged to help keep people in their homes, rather than foreclosing, the less the market deflates.
    How can they? Banks are more upside down than the homeowners.

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by Harry Guerrilla View Post
    I would but I'm short about $7k on the down payment.

    What are the benefits of a realtor?
    Haven't explored that aspect yet.
    You know that little piece of advice I just gave you about asking the seller to make your downpayment? That's one of the advantages to having a realtor. They write stuff like that into your offer and negotiate terms like that for you. The other is that they will be able to put together a market analysis for you to make sure you are not paying too much for a property. They will take steps to ensure you've got safety nets in case the property you're interested in buying turns out to be a major money pit. In most states, the buyer pays nothing for real estate respresentation (the commission is paid by the seller). The only time (usually) that the buyer pays for representation is when the house is listed For Sale By Owner in which case, someone has to pay the buyer's rep, and it won't be the FSBO seller.

    You never want to contact the listing agent directly to inquire about a property. They have the seller's best interest at heart, and they are not resprenting you. You could get hosed big time.
    Quote Originally Posted by soccerboy22 View Post
    You guys are weird.

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by Harry Guerrilla View Post
    I would but I'm short about $7k on the down payment.

    What are the benefits of a realtor?
    Haven't explored that aspect yet.
    They are bound by rules that protect you and all of your interests. You, being a buyer, they don't cost you a penny.

    Just make sure you go with a Realtor (member of the National Association of Realtors), not just a real estate agent.
    There is no such thing as a “Natural Born Dual-Citizen“.

    Originally Posted by PogueMoran
    I didnt have to read the article to tell you that you cant read.

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by StandUpChuck View Post
    Oh there are definitely people down on their luck.

    I'll disagree with the banks not working w/people. Short sales are often the first step, and the whole premise of the short sale is the bank forgiving the part of the debt that cannot be recovered through sales since the FMV is much lower now than time of purchase (Glinda's property would be a prime example of a house that would likely be a short sale since she bought at top of the market and made improvements). Banks will eat a heck a lot of the loan with a short sale and the homeowner avoids foreclosure.
    That is a possibility, but you have to get the note holder to agree.. and you best have it in writing or it never happened.
    There is no such thing as a “Natural Born Dual-Citizen“.

    Originally Posted by PogueMoran
    I didnt have to read the article to tell you that you cant read.

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    This sums up Obama's idea of fairness and personal responsibility

    Dear Responsible Home Buyer: You Wasted Your Money
    by Brian Sullivan


    Here's the scenario -

    Five years ago you bought a home for $300,000. You put down $50,000 and took out a fixed rate loan for the $250,000 mortgage. Over the past five years you've been paying principal. You didn't refinance, instead living with an older kitchen or bathrooms and a used car. You now owe $225,000, having paid $75,000 in real payments to a bank over the years.

    At the same time, another couple bought a similar home on your street for the same price. But unlike you, they put down just $5,000 and took out an interest only loan for $295,000. Three years ago they refinanced their house in a hot market and borrowed $50,000 in 'equity' to install a fancy new kitchen, complete with all the latest and greatest amenities. That 6 burner Viking stove looks great, but now they owe $345,000 and are paying no principal.

    Then housing took its fall.

    A third neighbor defaults and the home sells for $225,000. Appraisals tumble. You now realize your home is worth less than you paid, but at least you aren't completely underwater.

    Not so for the neighbor with the new kitchen. He realizes he's more than $100,000 upside-down on his mortgage and paying no principal. Though employed and can afford his monthly payments, the house suddenly looks like a burden, not a benefit. He considers walking away and mailing in the key.

    Now comes the President's new housing plan.

    Under it, banks are under pressure to cut not just his payments but also his principal balance. All on the back of the already cash-strapped FHA.

    So let's assume that unlike the other housing plan (HAMP), this one works and Mr. 6 Burner Stove gets his lender to slice $100,000 off his balance and dump the difference onto the FHA (and thus the taxpayer).

    He now owes $245,000 to your $225,000. But you spent $75,000 real dollars not including interest on your loan. He spent $5,000 and has a fancy new kitchen.

    Basically you just blew $75,000 bucks.

    And oh yeah, your taxes will probably go up once the FHA needs a bailout.

    That, in essence, is the 'new' housing plan from the White House. Does it sound like the "new era of personal responsiblity" the President spoke of in his inauguration?

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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by StandUpChuck View Post
    You know that little piece of advice I just gave you about asking the seller to make your downpayment? That's one of the advantages to having a realtor. They write stuff like that into your offer and negotiate terms like that for you. The other is that they will be able to put together a market analysis for you to make sure you are not paying too much for a property. They will take steps to ensure you've got safety nets in case the property you're interested in buying turns out to be a major money pit. In most states, the buyer pays nothing for real estate respresentation (the commission is paid by the seller). The only time (usually) that the buyer pays for representation is when the house is listed For Sale By Owner in which case, someone has to pay the buyer's rep, and it won't be the FSBO seller.

    You never want to contact the listing agent directly to inquire about a property. They have the seller's best interest at heart, and they are not resprenting you. You could get hosed big time.
    One way around that is for the agent a buyer is working with, to contact the FSBO and get a pocket listing (limited to that buyer only and very limited in time). The seller then pays the commission (usually lower than normal) and is usually happy to as most FSBO's don't sell.......... ever.
    There is no such thing as a “Natural Born Dual-Citizen“.

    Originally Posted by PogueMoran
    I didnt have to read the article to tell you that you cant read.

  10. #70
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    Re: Obama administration to order lenders to cut mortgage payments for jobless

    Quote Originally Posted by Crunch View Post
    That is a possibility, but you have to get the note holder to agree.. and you best have it in writing or it never happened.
    Dang straight. Heck, it needs to be written in blood! And then the bank will just change the terms anyway.



    Quote Originally Posted by Crunch View Post
    One way around that is for the agent a buyer is working with, to contact the FSBO and get a pocket listing (limited to that buyer only and very limited in time). The seller then pays the commission (usually lower than normal) and is usually happy to as most FSBO's don't sell.......... ever.
    You're right, that's the first step to try. Most FSBOs don't even want to talk to agents much less pay any commission as low as it may be. The buyer's rep owes it to their client to try with the seller, though.
    Quote Originally Posted by soccerboy22 View Post
    You guys are weird.

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