Good morning: After digesting the latest proposed changes to help homeowners who are upside down but current on their mortgages, I came away feeling this will help very few people at all. And it makes me wonder why the lenders aren't willing to reset mortgages to accomodate their borrowers. All of these ideas to help people really haven't helped many at all. You would think that the lenders would want to help homeowners; especially if they're in danger of losing their home. After all, I guarantee you the lender doesn't want to own your property. At last estimate, Countrywide had over 21,000 properties they own!
Here's the thing. Although a good idea in theory, the newest act only allows people to refinance who have approved mortgages through Fannie Mae (for the most part; my company can only refinance people where the mortgages are held by Fannie Mae and we're a banker). Also, it's only first mortgages. If a second mortgage is on the property that has to be subordinated. And alot of lenders are unwilling to do that. So what we're left with are a bunch of knock-out factors that probably mean this program won't help most homeowners either. My question is this. When will something be proposed that helps the people who need help right now? Or do we just need to wait and let the cycle run its course? Your thoughts are always welcome. Have a great day!
Paul McFadden
Lenn says it best, most of what is being advertised as "help for homeowners" is just propaganda... and not really help at all..it's a shame...because it's all about public perception...if the public only knew the truth.
I think this is another case of lipstick on a pig! Doesn't appear to be real substance but it shows well on the news!
I don't see anything in the program that will help enough people to make a difference; and millions of homeowners will have already lost their homes before the the government figures out how to let them know help was available. At some point maybe more people will get it--it is just a "feel good program" with little substance.
John: Thank you. I appreciate your insight. I wasn't crazy after all!
Gary: Yes it does indeed. it would be nice for a change to get some news that actually helps rather than disappoints.
Konnie: Thanks for your comments. Time will tell if this is anything at all. Have a nice weekend!
What really kills me about this whole government thing is that it doesn't help people who under normal circumstances would be able to afford their mortgages, but with unforeseen circumstances (illness, loss of jobs, accidents, etc) are now behind and the lenders don't want to be sympathetic or understanding of those situations - their investors just want their money.
William: I agree with you. It's a sad commentary when people in need get the proverbial shaft; even when they've worked hard their whole life.
I know it may be a harsh attitude Paul, but I don't think that homeowners or lenders who are in trouble should be helped out by the government at all. It is discrimination against those of us who were smart enough not to buy in a highly over valued market - the government is not paying our rent.
It is interesting to note that most of the bitching is being done by the mortgage and real estate "professionals" who 'helped' homeowners get into bad situations ...
Joe: Thanks for your insight. You are correct. Alot of the complaining has been done by my ilk. However, that ignores the fact that all these so-called aids haven't helped hardly anyone. I say if you're going to propose something follow through. Otherwise, it's just lip service!
I think Countrywide might be the one exception to the rule that the banks don't want to own property. I think this bank is actually out to take as many properties back at the same time collect as much money from the government as possible while doing it.
They can take 3 months to respond and then expect everyone else to jump when they do decide.
Todd: Countrywide is an interesting company. They say they want to help but evidence is to the contrary. Frnakly, I'm amazed they're still around. I wonder if BofA is second-guessing themselves about this acquisition. Take care. Thanks for your thoughts!