Any homeowners with an Adjustable Rate Mortgage?

[tony]

Bush subprime plan offers help to 1.2M

NEW YORK (CNNMoney.com) -- The Bush administration unveiled a foreclosure relief plan Thursday that the White House said could help 1.2 million distressed homeowners.

In separate announcements, President Bush and Treasury Secretary Henry Paulson said the plan will streamline the mortgage modification process for many distressed borrowers. It will offer "more relief to more homeowners, more quickly," the president said. And it will include a five-year freeze on interest rates for borrowers current with their monthly payments.

But the freeze is limited. It excludes anyone more than 30 days late at the time the mortgage would be modified or anyone who has been more than 60 days late at any time within the previous 12 months.

It also only covers borrowers with adjustable rate mortgages (ARMs) resetting beginning in 2008 and leaves out any who are judged capable of continuing to make mortgage payments at the higher reset rates.

Basically if someone got a mortgage they cannot afford the government just bailed them out.. I guess personal responsibility is becoming a thing of the past.

[JennB]

I think it's ridiculous. People should know better. It's certainly a hard way to learn a lesson but people have become so irresponsible with their money and so set on instant gratification that they don't even bother to think a few years into the future when signing something that binds them for 30 years.

I bought my first house at 23, I was a kid, but I knew better. I bought a house I could easily pay for and on a fixed interest rate. I don't know what excuse these people have for not doing research, not asking questions and no realizing that sometimes, you just can't afford things. I researched for months online and asked for advice from people when I bought my house, it was a huge thing to do but I did it.

Though I guess it's good that they want to not include people who are already late or have bad payment history. At least it will only help the people who are really trying. I would just like it if they would include some sort of financial counselling, teach people about the mistake they made, show them how to cut other expenses and make sure they know that in five more years, it will reset again and that they need to either sell the house or make changes in the way they spend money to be able to keep the house. I'll be very, very disappointed if there is another bail-out in five years. People need to learn and not just sit around waiting for someone to fix it for them.

[Jimmy B]

Basically if someone got a mortgage they cannot afford the government just bailed them out.. I guess personal responsibility is becoming a thing of the past.

welcome to america in the year 2000+

its ALWAYS someone elses fault!

[tony]

I bought my house at 23 myself, admiittedly with a 7 year fixed (Rate will not adjust until 2011 but I plan on selling next year) at 5.5%, I KNEW that it was my responsibility to pay that mortgage should I keep it until the rate adjusts

This plan only caters to the irresponsible, people with good credit would simply refinance their mortgage but obviously you cannot do that with bad credit. I'm suprised Bush has jumped on board with this but with the political pressure of the election coming up he doesn't want to make it any harder for the republican party.

I would go all into it but in a nutshell this goes against everything that makes this economy grow. The market explodes and when it grows too fast it corrects itself. This stands true in ANY market here in the U.S, the correction is a vital step to keep things on track and when the government steps in and manipulates that process it hinders more than it helps.

[SL65AMG]

the government and stupid ass people are the reason this country is going to ****. things will only get worse.


and JennB, thats exactly right. reps to u

[ShooterMcGavin]

yeah this whole thing just pisses me off. i mean if this is what happens when large numbers of dumbasses make dumbass decisions then maybe i ought to go out and buy a ridiculous ****ing house i can't really afford.

i bought my first place when i was 22, with an ARM no less and i have no problems with the payments and making sure my finances are in order.

stupid ppl ftmfl :2up:

[Kevykev]

Not to be the one upper but I bought my first house @ 22 on a 5/1 ARM @ 5.125 interest - It will be subject to adjustment in 2010.

This "plan" is obviously "a necessary" due to the recent events in the market. Although it's necessary, it's not the resolution. It all starts in the mortgage field some programs simply should NOT be offered to potential home buyers. Home buyers need to be more responsible indeed ho0wever it all starts with proper educated. They need to be supplied with REALISTIC information not simple logical scenarios.


Edit: Shagwagen was the original one-upper

[JennB]

I have a 30 year fixed at about 5.7% :goodjob:

[ShooterMcGavin]

?? have or had? :thinking:

[JennB]

Still have it, I just don't live there.


And it's actually a 30 year fixed at 5.50%. :bump: I had to look on my paperwork to remeber. It's been so long.

[Kevykev]

^ that's a great rate!

[JennB]

It was higher originally... since I bought the house in 2000 and rates were just higher back then. In 2003, rates dropped to ridiculously low levels and I refinanced at just about the lowest point. Sooooo glad I did.

[ShooterMcGavin]

oh ok, i was about to say, where are u gettin those rates now cuz i'd love to refi to a rate like that :D

[Turbo04]

Not to be the one upper but I bought my first house @ 22 on a 5/1 ARM @ 5.125 interest - It will be subject to adjustment in 2010.

This "plan" is obviously "a necessary" due to the recent events in the market. Although it's necessary, it's not the resolution. It all starts in the mortgage field some programs simply should NOT be offered to potential home buyers. Home buyers need to be more responsible indeed ho0wever it all starts with proper educated. They need to be supplied with REALISTIC information not simple logical scenarios.


Edit: Shagwagen was the original one-upper

There is nothing necessary about this. This situation is not a "oh god tree fell on the house" Everyone of the supposed "victims" has had years to prepare for the eventual rate adjusment. In the first place if you were just eeking by on the lower payments, you had no business buying the house. I'm outraged that this plan is going into action. WTF. My house is a fixed 30 year, cause I knew if I did end up staying long term past the point when an ARM would adjust, I did not want to be paying even more. I'd rather it stay a fixed price I can budget too. This is a classic example on what is very very wrong with our government. Instead of people stepping up and being responsible for their own lives, someone else just swoops in and makes things better for them. Don't even get me started about the "universal healthcare" alot of the new candidates are rattling on about......

Carp, Maybe I should've bought something I can't afford so I can live off the backs of other people and their actions....