Homeowner Affordability and Stability Act

[wiphan]

I honestly can not believe what is going on in our country right now. Within 2months everything our country was built on is gone. OBAMA for Change alright!

The homeowner Affordability and Stability act rewards people who did the wrong thing. Those who saved for a rainy day, prepared for possible job loss or rougher financial times, didn't spend $ that they didn't have are being left out and those who spent ridiculously, bought a home they shouldn't have are being rewarded with mortgage modifications. Haven't we learned that mortgage modifications don't work? The performance of modifications from last year have shown that 50% go deliquent in the first 6 months following the modification. It is like telling your child they shouldn't do something and then when they still do it against what you told them you give them a piece of cake after. Completely ridiculous.

Now I understand that some good people who did the right thing that had a job loss, etc. will benefit; however the percentage of those I believe will be less than 10%. Many people will take advantageof this program and find ways to beat the system just like all government run programs. Whatever happened to capitalism?

Anybody else frustrated?

[gales0678]

the country wanted change for change's sake

sometimes you are better off with the devil you know then the one you don't!

[wiphan]

Originally Posted by gales0678

the country wanted change for change's sake

sometimes you are better off with the devil you know then the one you don't!

Couldn't agree more

[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.

[dellinger63]

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.

Being from Mass how the heck does Ted Kennedy keep getting re-elected?

[ddthetide]

Originally Posted by wiphan

I honestly can not believe what is going on in our country right now. Within 2months everything our country was built on is gone. OBAMA for Change alright!

Anybody else frustrated?

i scream about stuff like this every week but i'm the bad guy because i speak up. i REALLY wish you guys could see how electric bills in this town get paid. it's INSULTING to those of us that bust our ass everyday!

[SuffolkGirl]

I assume that is a rhetorical question. And as an aside, the insurance requirement was former Governor Mitt Romney's little present to the commonwealth.

[wiphan]

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.

[SuffolkGirl]

Originally Posted by wiphan

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.

Maybe, but who knows. I would like to know what the metrics for success will be. I anticipate a re-default rate of 60% - 70%. In my experience with the HomeSaver loans (the FNMA program from last year) the re-default rate is close to 90%, it really did just stave off the inevitable. However the interest rates were market rates (which aren't all that high) but the housing ratio was not capped at 31% of income.

I look at peoples debt ratios all day, and even before this mess, the amount of debt an individual was carrying was staggering. I have no idea what people are thinking. And sure, the may go out and run up the credit cards all over again (that is the next big crisis, credit card default).

The reform I would really like to see is requiring every high school student to take and pass a personal finance class in order to graduate. I talk to adults every day who have absolutely no idea how to make a budget, how to pay bill regularly, how to plan, how to save. I think NJ is instituting something like this.

Anyway, it is a bloody mess, I hope this offers some sort of relief and the lending world can make loans for people who have some reasonable liklihood of paying them back.

I will get no assistance and continue to pay my mortgage on time for the forseeable future because I have taken a position that I am woefully overqualifed for but does allow me to honor my obligations.

[AeWingnut]

Originally Posted by SuffolkGirl

Maybe, but who knows. I would like to know what the metrics for success will be. I anticipate a re-default rate of 60% - 70%. In my experience with the HomeSaver loans (the FNMA program from last year) the re-default rate is close to 90%, it really did just stave off the inevitable. However the interest rates were market rates (which aren't all that high) but the housing ratio was not capped at 31% of income.

I look at peoples debt ratios all day, and even before this mess, the amount of debt an individual was carrying was staggering. I have no idea what people are thinking. And sure, the may go out and run up the credit cards all over again (that is the next big crisis, credit card default).

The reform I would really like to see is requiring every high school student to take and pass a personal finance class in order to graduate. I talk to adults every day who have absolutely no idea how to make a budget, how to pay bill regularly, how to plan, how to save. I think NJ is instituting something like this.

Anyway, it is a bloody mess, I hope this offers some sort of relief and the lending world can make loans for people who have some reasonable liklihood of paying them back.

I will get no assistance and continue to pay my mortgage on time for the forseeable future because I have taken a position that I am woefully overqualifed for but does allow me to honor my obligations.

sucker.






you should stop paying your way and let the gubment bail you out. Maybe you can talk to some of the Merril Lynch guys and figure out to get a solid gold bath tub out of the deal too.

[SuffolkGirl]

Originally Posted by AeWingnut

sucker.






you should stop paying your way and let the gubment bail you out. Maybe you can talk to some of the Merril Lynch guys and figure out to get a solid gold bath tub out of the deal too.

Do you think I can get it in a soaker tub model? I don't want a short shallow tub.

[AeWingnut]

Originally Posted by SuffolkGirl

Do you think I can get it in a soaker tub model? I don't want a short shallow tub.

built for two

[SuffolkGirl]

Originally Posted by AeWingnut

built for two

hey, I'm not that big yet!

[ArlJim78]

Originally Posted by AeWingnut

sucker.






you should stop paying your way and let the gubment bail you out. Maybe you can talk to some of the Merril Lynch guys and figure out to get a solid gold bath tub out of the deal too.

if very many people start to do this, it will be devasting given the amount of leverage in the system. but it will be tempting to people who are under water and struggling to make ends meet and watching how uncle sam is taking care of everyone else.

[Rileyoriley]

Originally Posted by dellinger63

Being from Mass how the heck does Ted Kennedy keep getting re-elected?

I'm from Mass and I ask myself that too.

[Cannon Shell]

http://online.wsj.com/article/SB123621392108135233.html

At least some Democrats have a little sense

[ddthetide]

Originally Posted by Cannon Shell

http://online.wsj.com/article/SB123621392108135233.html

At least some Democrats have a little sense

Very little

[Cannon Shell]

Originally Posted by ddthetide

Very little

I suppose I could go negative like GBBob says and take a shot at Obama and co by saying that Congressional Dems make more sense on this issue than the WH which is really hard to do...

[geeker2]

Originally Posted by Rileyoriley

I'm from Mass and I ask myself that too.

btw that's Sir Tedddy