My wife asked me last week if the President Obama's foreclosure plan was going to help all home homeowners. At the time I didn't have a clear answer, but the next day CNN Money reported that it would not.
Do you fit into these scenarios?
-Don't have a job?
-Struggling to keep up with payments on a home worth less than half the mortgage?
-Owe way more than your home's value, but can still afford the payments?
Sorry, but you likely aren't among the 9 million people who may get help under President Obama'a $75 billion foreclosure prevention program.
The program, unveiled last week, is being hailed as the most comprehensive fix for the foreclosure crisis plaguing the nation. The president says it helps both responsible homeowners suffering from falling home prices and borrowers either at risk of or already in default.
But not everyone will benefit. The program does virtually nothing for the unemployed, who often don't have enough income to make any reasonable monthly payment affordable. And, since it relies more heavily on lowering interest rates than on reducing principal, it does little for borrowers concerned their homes will never recoup their value.
The administrations program isn't designed to help every homeowner, experts said. Nor should it.
The plan call for loan servicers to modify mortgages fro those at risk of or already in default so that the monthly payment is no more than 31% of the borrowers income. This will be done primarily through interest rate reductions, which are more palatable to most servicers than principal write-downs. The federal government will subsidize the interest rate reductions, as well as provide a multitude of incentives for servicers, mortgage investors and borrowers.
Also, borrowers with little or no equity in their homes who are on time with their payments could be eligible to refinance to take advantage of the current low interest rates, which hover around 5%. The plan lifts the guideline that borrowers must have at least 20% equity refinance, allowing those with loans as large as 105% of their home's value to qualify. This is designed to help people who have seen their equity eaten away by falling home prices.
There is going to be no happy medium with this, which leaves me to say let the chips fall where they may.
Those who bought homes that they couldn't afford need to rent a room out or go get a second job. You made the investment choice you need to live with it.
I don't want to see the economy continue to worsen, but it will if this doesn't come to an end soon. But the issue I have is not with those who are responsible and are doing whatever it takes to make their house payment.
I am tired of everyone wanting to get bailed out all the time. You need to be accountable for your actions. I have lost a lot of money in the stock market, just as a lot of other people have, but should I be getting reimbursed by the companies I own stock in for what I lost? Of course not, I made the decision and now I have to wait it out.
People have what I call removing animals from the wild syndrome. When you take an animal out of the wild and care for it as pet, say as with a turtle, it forgets how to take care of itself. If you let back into the wild it doesn't know how to find food anymore and eventually it will die. Get up on your feet and don't be a bunch of animals. Get out there and fight for what you want. Don't rely and someone else to bail you out.
Do you fit into these scenarios?
-Don't have a job?
-Struggling to keep up with payments on a home worth less than half the mortgage?
-Owe way more than your home's value, but can still afford the payments?
Sorry, but you likely aren't among the 9 million people who may get help under President Obama'a $75 billion foreclosure prevention program.
The program, unveiled last week, is being hailed as the most comprehensive fix for the foreclosure crisis plaguing the nation. The president says it helps both responsible homeowners suffering from falling home prices and borrowers either at risk of or already in default.
But not everyone will benefit. The program does virtually nothing for the unemployed, who often don't have enough income to make any reasonable monthly payment affordable. And, since it relies more heavily on lowering interest rates than on reducing principal, it does little for borrowers concerned their homes will never recoup their value.
The administrations program isn't designed to help every homeowner, experts said. Nor should it.
The plan call for loan servicers to modify mortgages fro those at risk of or already in default so that the monthly payment is no more than 31% of the borrowers income. This will be done primarily through interest rate reductions, which are more palatable to most servicers than principal write-downs. The federal government will subsidize the interest rate reductions, as well as provide a multitude of incentives for servicers, mortgage investors and borrowers.
Also, borrowers with little or no equity in their homes who are on time with their payments could be eligible to refinance to take advantage of the current low interest rates, which hover around 5%. The plan lifts the guideline that borrowers must have at least 20% equity refinance, allowing those with loans as large as 105% of their home's value to qualify. This is designed to help people who have seen their equity eaten away by falling home prices.
There is going to be no happy medium with this, which leaves me to say let the chips fall where they may.
Those who bought homes that they couldn't afford need to rent a room out or go get a second job. You made the investment choice you need to live with it.
I don't want to see the economy continue to worsen, but it will if this doesn't come to an end soon. But the issue I have is not with those who are responsible and are doing whatever it takes to make their house payment.
I am tired of everyone wanting to get bailed out all the time. You need to be accountable for your actions. I have lost a lot of money in the stock market, just as a lot of other people have, but should I be getting reimbursed by the companies I own stock in for what I lost? Of course not, I made the decision and now I have to wait it out.
People have what I call removing animals from the wild syndrome. When you take an animal out of the wild and care for it as pet, say as with a turtle, it forgets how to take care of itself. If you let back into the wild it doesn't know how to find food anymore and eventually it will die. Get up on your feet and don't be a bunch of animals. Get out there and fight for what you want. Don't rely and someone else to bail you out.
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