Home Modification/Refinance under Obama Plan...

[ahabion]

Under Obama's new plan, you may be eligible to get a significant reduction in your payment if your principal balance is greater that the Fair market value of your home.

Check this out: http://www.financialstability.gov/makinghomeaffordable/

They say that they'll be getting a list together of servicers (mortgage lenders) who will sign the contract and participate. Currently, servicers and mortgage companies are not required to participate with the plan (it's voluntary right now) but there is significant incentives for lenders to participate.

Check out the above to find out if you qualify to have your payment modified or refinanced. In the article I'm reading from the site above, they say that lenders will be functional come April... they just got their paperwork details of the plan March 4th, so they claim that servicers may be delayed in being able to start the program.

Hope this helps you guys out!

[Vteckidd]

ok so whats the TRUE MARKET VALUE of your home? This plan most likely wont ever make it out for a few reasons.

If the economy continues to slide, whatever the government appraises your home at TODAY can still fall another 20-30% in value over the next few years, even as many as 10.

Example

House was bought for $500,000

House is now worth $350,000 (appraised be the federal govt).

The bank just lost $150,000 in value (granted its in their best interested to keep as many people in the home rather than forclose)

What happens if the house is worth $200,000 in 2-5 years. What then? we are right back where we started, except only worse off now cause the govt is involved.

This is also rewarding people that ARENT paying their mortgage because THEY made BAD financial decisions. I mean if i buy a ferrari making $400 a week, do you expect me to keep it?

SOcialism train is here, everyone on board!

[Frög]

ok so whats the TRUE MARKET VALUE of your home? This plan most likely wont ever make it out for a few reasons.

If the economy continues to slide, whatever the government appraises your home at TODAY can still fall another 20-30% in value over the next few years, even as many as 10.

Example

House was bought for $500,000

House is now worth $350,000 (appraised be the federal govt).

The bank just lost $150,000 in value (granted its in their best interested to keep as many people in the home rather than forclose)

What happens if the house is worth $200,000 in 2-5 years. What then? we are right back where we started, except only worse off now cause the govt is involved.

This is also rewarding people that ARENT paying their mortgage because THEY made BAD financial decisions. I mean if i buy a ferrari making $400 a week, do you expect me to keep it?

SOcialism train is here, everyone on board!

Its just like the bail out, companies that made bad decisions and had poor internal management are being rewarded..

Fuck my life.. Why wasn't I born 50 years ago..

[ahabion]

It's already out and been sent out to banking institutions to implement. Here is the CNN article: http://www.cnn.com/2009/POLITICS/02/...lan/index.html

Here is the Q&A pdf from the site above: http://www.financialstability.gov/docs/counselor_qa.pdf

Believe me, I'm not at all for Socialism but this is what is happening, so take advantage while you can (Capitalist thinking HERE!)

Its relevant to me because I've been laid off work since before Xmas last year and I've been actively looking for a full time job but to no avail. This would probably help us out in getting our monthly payment down for a full five years (under the plan). We're still current on our mortgage and will probably remain current up until about fall... after that (if I still haven't found a job yet) this would hopefully help us out in the long run while also reducing our interest rate and monthly payment significantly.

Like I said, take advantage while you can if you can.

Not to mention, it may give you some incentive to refinance down to simply a lower interest rate AND get the incentive annually.

[Vteckidd]

People like you , who truly have hardship, i understand what you are doing. Its hard to find a job now, and i dont WANT you to lose your house.

BUt i have a feeling, this will be abused by the "house flippers". And i have a problem with the govt stepping in to control private financial matters.

Where do we draw the line? what happens if you cant make your car payment? Electricity bill? etc

[preferredduck]

People like you , who truly have hardship, i understand what you are doing. Its hard to find a job now, and i dont WANT you to lose your house.

BUt i have a feeling, this will be abused by the "house flippers". And i have a problem with the govt stepping in to control private financial matters.

Where do we draw the line? what happens if you cant make your car payment? Electricity bill? etc

supposivly house flippers and investors cannot use the money, but on one story there was a bus driver in the DC area had an 800000 house and was going to lose it, and her husband is in construction, we are talking abt a million dollar home, i dont think they should be helped, kick em out and put them in the 250k range.

[SL65AMG]

supposivly house flippers and investors cannot use the money, but on one story there was a bus driver in the DC area had an 800000 house and was going to lose it, and her husband is in construction, we are talking abt a million dollar home, i dont think they should be helped, kick em out and put them in the 250k range.

bus driver- blah....

construction- that guy could actually be making serious money.... do you know what he did??

[preferredduck]

bus driver- blah....

construction- that guy could actually be making serious money.... do you know what he did??

not sure what type of construction he was in, but a million dollar home, seems like you need to sell it and get a smaller house.