This whole subject really irks me. I searched for my house and budgeted and saved and did everything right. Now my taxes are going to pay for people who bought a 300K house on a 30K salary or for someone who refied 5 times and blew all the cash and the balloon note is due. Has anyone heard how the govt is planning to weed out those in need from those in greed?

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1982 300CD Turbo (Otis, "ups & downs") parts for sale
2003 TJ with Hemi (to go anywhere, quickly) sold
2001 Excursion Powerstroke (to go dependably)
1970 Mustang 428SCJ (to go fast)
1962 Corvette LS1 (to go in style)
2001 Schwinn Grape Krate 10spd (if all else fails)

Your use of the word government in that question, should answer your question.

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.

Yes. I'll try and find a link. There's a percentage requirement that eliminates people like in your example. The plan does not help people who bought way too much house. EDIT: here it is "According to the White House blog, under this part of the plan eligible loans cannot exceed 105% of the current market value of the property."
http://www.marketwatch.com/news/story/how-obama-mortgage-plan-affect/story.aspx?guid=%7BA467011A-605E-4F45-B077-E57F72C30049%7D&dist=msr_1

Your tax dollars will not pay anyone's mortgage. No one's principal is going away either.

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1984 300TD

If that's the case there is no bailout as there is almost no house bought in the last five years for anything nearly as low as it's "current market value"

- Peter.

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2021 Chevrolet Spark
Formerly...
2000 GMC Sonoma
1981 240D 4spd stick. 347000 miles. Deceased Feb 14 2021
2002 Kia Rio. Worst crap on four wheels
1981 240D 4spd stick. 389000 miles.
1984 123 200
1979 116 280S
1972 Cadillac Sedan DeVille
1971 108 280S

True that. The real solution will occur when the carpet bag'ers step in and set the new values.

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-Marty

1986 300E 220,000 miles+ transmission impossible
(Now waiting under a bridge in order to become one)

Reading your M103 duty cycle:
http://www.peachparts.com/shopforum/831799-post13.html
http://www.peachparts.com/shopforum/831807-post14.html

The carpet baggers are not getting a free ride, the plan has the appearance of a homeowner bailout but the real purpose is to balance the banks books in lieu of shoveling more money into the banks which has not worked. To fully understand the intention of the bill you must first know about reserve requirements of banks which I bet .1% of the population has a working knowledge on the subject.

FWIW: I think Obama's plan was better than the more left leaning package that was eventually passed. In other words Obama is farther right than we were led to believe.

of course I assume it will be a govt program, thats why I was worried about the plan of attack. I am not sure how it will work if there is a limit of 105% current value. with that I will also not be able to take advantage of the lower interest rates even though I have awesome credit due to the fact my value has decreased about 20%. I do hope they will be able to get people through that were responsible owners who have had a little bad luck, I just keep hearing stories of people that bought on ballons way too much house and they were getting half the loan forgiven to keep them in the house. I dont want to pay for that.

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1982 300CD Turbo (Otis, "ups & downs") parts for sale
2003 TJ with Hemi (to go anywhere, quickly) sold
2001 Excursion Powerstroke (to go dependably)
1970 Mustang 428SCJ (to go fast)
1962 Corvette LS1 (to go in style)
2001 Schwinn Grape Krate 10spd (if all else fails)

thanks, I did not find that article in my search. the example given fits me pretty close although I was hoping to get some of the 4.75 for the full 30 year term refi or get the 4.5 for a 15 yr refi and keep my payment close to the same. I guess I will start pinging some lenders and see if they will work with me.

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1982 300CD Turbo (Otis, "ups & downs") parts for sale
2003 TJ with Hemi (to go anywhere, quickly) sold
2001 Excursion Powerstroke (to go dependably)
1970 Mustang 428SCJ (to go fast)
1962 Corvette LS1 (to go in style)
2001 Schwinn Grape Krate 10spd (if all else fails)

The loan modifications are for Fannie and Freddie, neither of them offered big balloon or option arm loans, the modifications are for people that have had a large decline in value and you must be current on your present mortgage. There are provisions for hardships but they account for a very small portion of the assistance.

Again, lower interest rates are an osmosis of the intention of the stimulus which is to balance the banks balance sheets to spur investment.

Well lets see
Somebody is buying down the interest rate, when we pay them they are points.
Somebody IS lowering the principal on these loans.
Somebody is paying the servicer and/or first note holder up to 6k just to rewrite the mortgage (Per NBC Nightly News).
I also heard that the gov will toss a grand a year towards the principal on these Mtgs, don't know if that made it into the final thing though.

NOW, I am very much against this plan. I believe that there were some people taken advantage of. BUT, most more or less knew what they were doing and took risk(s).
Housing values would continue to appreciate.
Income would rise, and they would have a job.
Or ???
They took the risk, they need to pay the price.

I still don't see things as bad as they are saying by me, not great, but far from disaster.

OK, here is something I would like to see.

Those people taking any form of goverment bailout towards their mortgage gives up the 250k tax exemption up sale. Or at least reduced by the amount of taxpayer funded assistance.

It doesn't make me think it is fair, but will help.

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.

Im up to date, but not fanny or freddie. Mine is a 30 year conventional at the best rate I could get 3 years ago. With a 4.75 I could knock off $500/month with 4.5 I could knock off 12 years

__________________

1982 300CD Turbo (Otis, "ups & downs") parts for sale
2003 TJ with Hemi (to go anywhere, quickly) sold
2001 Excursion Powerstroke (to go dependably)
1970 Mustang 428SCJ (to go fast)
1962 Corvette LS1 (to go in style)
2001 Schwinn Grape Krate 10spd (if all else fails)

The finite details about how this will be handled will be released on March 4th, I will post the details as they come in, I am refraining at this point due to copyright and subscription infringement's.

If you are dire for GOOD information following www.mortgagenewsdaily.com or www.themortgagereports.com/

Mortgage news daily is highly technical while The Mortgage Report does a nice job putting into laymen terms.

I will add to my post above, had some technical difficulties here.

They bought more house than they could afford assuming prices would rise, and so would their income.



And finally, things are bad today right ?

When we bought the house we are in, interest rates for 30 year fixed mtgs were in the low TEENS yes 12 to 15 %. We got a 10% ARM !!!!!!!!!

AND we could pay the Mtg if either of us lost our jobs.

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.

How do you know if the security is not held by fannie or freddie? Most conventional mortgages are secured by one of them, after or about March 4th your current servicer will have a hotline to let you know which one holds your security.

your right, I do not know for sure. My paper was sold 3 times, 2x the first year. It has been with the 4th since oct 07.

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1982 300CD Turbo (Otis, "ups & downs") parts for sale
2003 TJ with Hemi (to go anywhere, quickly) sold
2001 Excursion Powerstroke (to go dependably)
1970 Mustang 428SCJ (to go fast)
1962 Corvette LS1 (to go in style)
2001 Schwinn Grape Krate 10spd (if all else fails)