mortgages

[RonC]

seems that the new deal is that homeowners are not paying their mortgages and credit card bills in hopes of settling for less with the banks and credit card companies. we are not only talking about those who cant afford it, but also those who can.

thoughts and opinions?

 

[jwintosh]

i'll try it and get back to you...

 

[Angry Bill]

Its BS Ron.. I understand, but don't agree with the folks that can't pay. I pay my bills and found a way to do so when I was going through a tough divorce. But those that have the money and are playing the system. To me, it's stealing.

 

[RonC]

Its BS Ron.. I understand, but don't agree with the folks that can't pay. I pay my bills and found a way to do so when I was going through a tough divorce. But those that have the money and are playing the system. To me, it's stealing.

while i agree with you bill, after seeing the govt handouts to the banks, its hard for me to really get pissed about it

 

[RonC]

and i think you will see a govt sponsored mortgage bailout of individuals

 

[Angry Bill]

I bet you are right, although I hope you are. We can't take all this debt and expect our country to survive.

 

[Boston Matt]

and i think you will see a govt sponsored mortgage bailout of individuals

Yes, but all of the proposed plans (thus far) have carved out people who can afford their mortgages but who have chosen to walk away because their investment is under water (in other words, they bought the place for $800k with $100 in cash and $700 in debt, and now the place is only worth $500, but they still owe $650 in debt).

If you look at the some of the proposed plans for homeowners, they're actually pretty strict.

 

[RonC]

what i heard today is you get a NEW appraisal on your home.your current bank gives you new mortgage based on 85% of its current value. the bank writes off the loss. govt guarantees the mortgage.

example. you bought a home for $350,000. you have a 300,000 mortage at say 6.5%.
your home is now appraised for $250,00 current value. You get a 212,500 mortgage at a special govt rate of 4.5-5%. the bank writes off the $137,500. you keep your house, and govt gaurantees the loan to the bank.

 

[Boston Matt]

what i heard today is you get a NEW appraisal on your home.your current bank gives you new mortgage based on 85% of its current value. the bank writes off the loss. govt guarantees the mortgage.

Which (and hopefully this doesn't ruin this thread and move it to the Debate Forum) is significantly different than what McCain was offering and what was the single strangest piece of McCain's plan (in my opinion).

Under McCain's plan, the government would pay the face value of the mortgage and then the government would essentially reset the value of the new mortgage at the newly appraised value. In other words, no penalty to the banks (who get made whole) for making bad loans.

At least in this plan, the banks are taking their fair share of the hit compared to the taxpayers...

I swear that as much as I liked McCain, I am absolutely convinced he knew nothing about how the economy actually works...

Oh well, all water under the bridge now! :grin:

 

[CWS]

The sad thing is Ron that the last thing people are defaulting on is their credit cards. We have never seen anything like it in the history of the business. People are walking away from houses, cars, boats and other hard collateral, but keep paying on the cards. Why? In order to eat.

 

[Wigwam_Motel]

What some people do not know. If they settle for "less", say they owe 10,000 on they're taxes, and they ended up paying 4,000. They must report 6,000 on they're taxes as income or debt relief. Love taxes.

 

[Cigary43]

Its BS Ron.. I understand, but don't agree with the folks that can't pay. I pay my bills and found a way to do so when I was going through a tough divorce. But those that have the money and are playing the system. To me, it's stealing.

It's finally catching up with all of us. You live by the credit card, you die by the credit card.

and i think you will see a govt sponsored mortgage bailout of individuals

The only bailout I see is for those people who are missing payments on their houses so they can get a better rate or plan with the banks. The banks will not talk with you about the better rates unless you miss payments or are starting foreclosure. Here in Atlanta, if you have a house where it's hard to make payments they won't talk with you but if you miss a few payments all of a sudden the bank wants to talk with you about getting another loan. If you are honest and pay your bills they tell you to stick it in your ass for a better loan, but if you miss payments all of a sudden your gold? WTF is that about?

What some people do not know. If they settle for "less", say they owe 10,000 on they're taxes, and they ended up paying 4,000. They must report 6,000 on they're taxes as income or debt relief. Love taxes.

Death and taxes,,,you can't beat it!

 

[Wasch_24]

The sad thing is Ron that the last thing people are defaulting on is their credit cards. We have never seen anything like it in the history of the business. People are walking away from houses, cars, boats and other hard collateral, but keep paying on the cards. Why? In order to eat.

Exactly, if they keep making the minimum payment the credit card is their security blanket.

What good is collateral if no one will buy it from you when you need the money, right?

All of this is so amazingly complicated and scary at the same time. I was telling the wife the other day that this is just the beginning. Wait until all these attempts at bail outs fail and major corporations start dropping out of the economy.

Hello shit, I would like to intriduce you to the fan. :bigeyes:

 

[srduggins]

What a load of crap. The governement taking my money to bail out the irresponsible, money mongering, freeloaders ..... uhh, sorry, end rant.

It's like throwing bloody fish into a shark feeding frenzy trying to save the poor little fishies from being eaten. The only thing you get are fatter sharks.

 

[Angry Bill]

Well, I personally have very little debt. A mortgage on the house, my truck payment and NO CREDIT CARD DEbt! I live by cash. If I can't afford it, I don't buy it! I have plenty of money in the bank, in case I got hurt

 

[BradMc]

Here is Y we are having this problem....
Yesterday I was talking to a banker about my mortgage here in MN, and seeing what I could do about an offer on the one in SC....I about fell out of my chair when he said
" I'll get u into the house in SC and if you don't like what the Relocation company offers u for the House in MN, try renting or just let the house in MN foreclose" I looked at him and said I have worked my ass off and have outstanding credit, pay ALL my bills, and 2 ex's and there fricking lawyers, and he says Just let it foreclose.....Needless to say I'm not using his bank......OMFG I was pissed

 

[Daviso27]

Im seeing it first hand...between my wife and I, we make a good living, we save a couple grand a month between the both of us and we pay allof our bills...Our house payment is a little high and we would like to get a better payment...So I was told we would need to go into default or forclosure before any bank would touch us....All I want to do is refi...but I would have to destroy my credit to do so. I guess we will keep paying and think to ourselves, "It could be worse!"

I believe that after all this ecomomy shit is done, they are going to have to rethink the whole "credit rating" thing, due to a huge amount of Americans having f'd up credit.

Another thing...A dude at work just went through a divorce and a forclosure..he purchased a new 08 Maxima $2k down, at a 3.5% and 72 term payment plan...When my neighbor, at the same dealer, was offered a with his trade and I think $3k+/- down at a4% 60 term for the same car...and this dude says he has excellent credit. Maybe I do not know all the details, but it seems that those who were not responsible are the ones rewarded....

 

[Cigary43]

Welcome to the Bizzaro World!! In order to move forward you must get behind in your payments with your house, credit cards, etc. After you almost get into foreclosure then you can be helped. The next administration is all about this and I fail to see how it's going to work where everything is going to become an entitlement program. If we are all entitled, who is going to pay for it, the upper class?

Im seeing it first hand...between my wife and I, we make a good living, we save a couple grand a month between the both of us and we pay allof our bills...Our house payment is a little high and we would like to get a better payment...So I was told we would need to go into default or forclosure before any bank would touch us....All I want to do is refi...but I would have to destroy my credit to do so. I guess we will keep paying and think to ourselves, "It could be worse!"

I believe that after all this ecomomy shit is done, they are going to have to rethink the whole "credit rating" thing, due to a huge amount of Americans having f'd up credit.

Another thing...A dude at work just went through a divorce and a forclosure..he purchased a new 08 Maxima $2k down, at a 3.5% and 72 term payment plan...When my neighbor, at the same dealer, was offered a with his trade and I think $3k+/- down at a4% 60 term for the same car...and this dude says he has excellent credit. Maybe I do not know all the details, but it seems that those who were not responsible are the ones rewarded....

 

[dpricenator]

Let me start by saying i work at a large debt settlement company. We enroll people who are behind on thier CC payments and need help getting out of debt. It is deffinetly not a program for everyone. It F's up your credit and can get sued, garnished, harrassed, and so on. The bankruptcy laws have changed making it very difficult for some to file for BK protection. We do however make sure people are in a legitimate hardship. It is what it is.....

The sad thing is Ron that the last thing people are defaulting on is their credit cards. We have never seen anything like it in the history of the business. People are walking away from houses, cars, boats and other hard collateral, but keep paying on the cards. Why? In order to eat.

We see this all the time and it blows me away. One lady the other day said well if I'm late on 8 credit cards they will all charge me a $39 late fee so $320 in late charges. If I'm late on my MTG they only charge me $75. I explained (trying not to laugh) that they can take her house from her if she misses another payment. Anyway I told her to go figure out her mtg and get back to me.

What some people do not know. If they settle for "less", say they owe 10,000 on they're taxes, and they ended up paying 4,000. They must report 6,000 on they're taxes as income or debt relief. Love taxes.

If the person is insolvent, they can circumvent that tax. Insolvent means you owe more than you are worth. so If you are upside down on your house, and owe 50k in credit cards, you won't pay any taxes on the forgiven debt. form 983 i believe.

 

[Saully]

Here is Y we are having this problem....
Yesterday I was talking to a banker about my mortgage here in MN, and seeing what I could do about an offer on the one in SC....I about fell out of my chair when he said
" I'll get u into the house in SC and if you don't like what the Relocation company offers u for the House in MN, try renting or just let the house in MN foreclose" I looked at him and said I have worked my ass off and have outstanding credit, pay ALL my bills, and 2 ex's and there fricking lawyers, and he says Just let it foreclose.....Needless to say I'm not using his bank......OMFG I was pissed

A banker recommending foreclosure. Something I never expected I'd see.