Quote:
|
Originally Posted by SuffolkGirl
http://www.financialstability.gov/
Am I frustrated? Yes, I lost my job this summer and am doing contract work with no benefits, no insurance and since I am in MA I MUST have insurance, so I get to buy monthly COBRA insurance at usury rates. However, that being said, this isn't a complete hand out. The interest rate is temporarily dropped to make the monthly payments affordable, principal reduction is optional, the interest rate will gradually be raised to market rate at the time of modification. Maybe this will help keep some people in their homes so that the neighborhoods don't fall apart. I'd rather have someone living next to me who has had a modification and paying 2% on their mortgage rather than have a house boarded up after the copper has been stripped out. This may also stop an entire new flood of 2/28 rate resets (the last of them should be coming in the next few months) from foreclosure and continuing the downward spiral. I sure hope the works out. And good luck to all of the servicers out there to wade through this.
|
Aren't we just delaying the problem? Past performance has shown that at least half of the people probably who will qualify for this program won't pay anyway, regardless of what their payment is. The only people who qualify have high debt ratios. Their debt ratio will be lowered with the modification, but their spending habits will not change so eventually their debt ratio will be as high if not higher than prior to the modification. So we are just delaying the foreclosure proceedings and subsidizing that with taxpayer $. In my past business experience it is usually best to cut your losses as early as possible rather than delay it and hope things work out.