I just finished listening to a report on the Fox News Channel about mortgage rates of as low as 2% for existing mortgages in trouble. I try real hard not to let news of the day get my dander up but this had me jumping out of the chair. So lets see if I can make this as clear and simple as possible.
This program was initiated last spring at the same time as the stimulus program. You remember, the "shovel ready" program that we now realize has really not produced any jobs! In the Stimulus program, the Obama administration set aside $75 Billion dollars to help out those people who were "underwater" with their mortgages and unable to pay. Many were forced with foreclosures. It does not matter why you need this help. You can have a decline in the value of your home, loss or decline of your income, or even if you had a separation or divorce.
The new plan would allow you to extend your credit up to 40 years. Refinance your loan as low as 2% interest rate. Change your adjustable rate loan to a fixed rate loan and waive all late fees and charges. The new twist is that the Treasury Department is releasing a list in December of those Mortgage Companies (known as "servicers") who are lagging behind in processing and helping these mortgages in trouble. As of this date, only 1700 families had
completed the process out of a possible 375,000 applicants.
Here is my problem. Some mortgages truly have run into trouble because of lost jobs and the economy. But there are way too many that fell into that group of mortgages that had no business being financed to begin with. You know the stories about applications that had little or no verification of incomes. The difference between an old payment at 7% on a $150K home at 30 years of $994.00 per month versus the 2% loan at $554.00 per month. Ultimately, this gift comes at the expense of the taxpayer. There is no screening in this loan modification program for weeding out the bad loans. Remember the claims by some that now that Obama is elected as President, " he will help me pay the mortgage?" Well this is about as close to a handout as possible.
Very well written. Wish I could get a break like that. Why does it seem that the hard working person keeps on working and the dead weight of this country continue to get breaks they don't deserve? Perhaps there is no reason to be honorable. You'll get more if your not. I've never seen such a mess up in the Whitehouse. I wouldn't let them run a latrine detail, let alone my country.
ReplyDelete