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Good news for the responsible homebuyers?

Hey, I was just watching Campbell on CNN (the no-bull no bias show or something like that - not too familiar with it). Anyway they broke down the mortgage rescue portion of the stimulus bill. The first half, of course, deals with borrowers in default - the second half deals with individuals who HAVE made their payments but are having problems becuase their homes have now devalued. Supposedly it is going to be left to Fannie and Freddie to refi these homes to payments not more than 31% of the gross income AND adjust the loan to reflect the new (lower) value.

Could this mean that there is light at the end of the tunnel for those of us who make the house payment but let everything else slide a little?

Answer Question
 
plylerjones

Asked by plylerjones at 8:32 PM on Feb. 18, 2009 in Politics & Current Events

Level 11 (508 Credits)
Answers (12)
  • No because I bought a house I could afford in 2004. It's below 31% of our gross income, but the people who were irresponsible made my home value go down to where I would pretty much break even by selling. So whie I wouldn't lose and could even gain a little if I sold it. It's not deal for people like me who did everything right yet still the most help is going to people who didn't do it right.
    SylviaNCali

    Answer by SylviaNCali at 8:38 PM on Feb. 18, 2009

  • Still doesn't help me - my home is devalued by the several dozen foreclosures in our neighborhood, but I have nothing to refinance. They can't put the value of my house back to where it was when I bought it years ago, and honestly, if I did have a mortgage, I'd file bankruptcy before I'd ever consider a loan through freddie/fannie
    NotPanicking

    Answer by NotPanicking at 8:55 PM on Feb. 18, 2009

  • Light at the end of the tunnel?! They are handing the loans over to the companies that F'd everything up in the first place! What sense does THAT make?
    momof030404

    Answer by momof030404 at 9:17 PM on Feb. 18, 2009

  • OP here -Our mortgage is below 25% of our debt to income ratio, but if someone wants to drop my 6% down to 4% I would honestly consider it. Also, our home was purchased at 40k below the appraisal value (which is probably what it really is worth now :-)
    plylerjones

    Answer by plylerjones at 9:18 PM on Feb. 18, 2009

  • You can only do that if Fannie or Freddie own your loan. And they mostly owned sub-prime PC loans to begin with.

    It's so ironic--the same dumbwads that messed everything up to begin with are trying to fix it! The foxes are in the henhouses, for sure!!
    MojitoMama

    Answer by MojitoMama at 10:47 PM on Feb. 18, 2009

  • It applies to all banks that want to work with the governement it not just freddie and fannie
    The administration is loosening refinancing restrictions for many borrowers and providing incentives for lenders in hopes that the two sides will work together to modify loans. But no one is required to participate. The biggest players in the mortgage industry temporarily had halted foreclosures in advance of Obama's plan.The goal is to lower many endangered homeowners' payments to no more than 31 percent of their income. But that depends on a high degree of cooperation by lenders who have been increasingly wary of new lending as the crisis has deepened.
    Still, the Obama administration, after talking with mortgage investors, appears confident that it is providing the right mix of incentives and penalties to make sure mortgage companies take part.
    Anonymous

    Answer by Anonymous at 12:01 AM on Feb. 19, 2009

  • Obama said he backs legislation in Congress to allow bankruptcy judges to modify the terms of primary home loans — an idea ardently opposed by the lending industry.
    "Taken together, the provisions of this plan will help us end this crisis and preserve, for millions of families, their stake in the American Dream," Obama said. Yet, he also added: "We must also acknowledge the limits of this plan."
    He called on lenders, borrowers and the government "to step back and take responsibility" and said: "All of us must learn to live within our means again."

    Anonymous

    Answer by Anonymous at 12:02 AM on Feb. 19, 2009

  • The goal is to lower many endangered homeowners' payments to no more than 31 percent of their income. But that depends on a high degree of cooperation by lenders.
    Anonymous

    Answer by Anonymous at 12:03 AM on Feb. 19, 2009

  • So now the government not only owns our Banks but now they will have a thumb on our homes, next it will be our medical coverage, whats next?
    TinasTribe

    Answer by TinasTribe at 7:21 AM on Feb. 19, 2009

  • This still dosen't help me. We bought our home in 2007 with our payment at 25% of our take home pay. Interest rate is 6.5%. Not enough equity now to refinance to a lower rate but our payment is still only 25% of our take home pay. Just devalued, so can't refinance to the lower rates. And having them refi thru fannie and freddie is just laughable. No thanks. But not being able to get these lower rates still pisses me off.
    MissAlisabeth

    Answer by MissAlisabeth at 7:57 AM on Feb. 19, 2009

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