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jjk94
12-06-2007, 04:12 PM
Just a Quote
Why should these deadbeats be helped? They signed a contract and should suffer the consequences of their bad decision to take out a mortgage they couldn't afford. I did the responsible thing, and no one is helping me with my payment.
Life is unfair. Some undeserving people will benefit from the plan. Some people were greedy. Some were unscrupulous. But many subprime borrowers didn't understand the consequences of what they agreed to. Even the mortgage industry accepts that most borrowers don't understand the terms of their loans. It's apparent that even the most sophisticated investors didn't really understand the risks from subprime lending.
The industry has agreed to this plan because it is in their interest to limit foreclosures if at all possible. No one is being forced to modify loans. The government worked for the agreement because it wants to prevent foreclosures from destroying families, neighborhoods and the economy.
It's possible that preventing foreclosures will also prevent housing prices from falling as far as they might. Depending on whether you are buying or selling, that's either a good or a bad thing

P-Money
12-06-2007, 04:15 PM
Its just like insurance, someone is gonna pay for this and I'm guessing it will be the same people that were responsible in the first place. With talk of cutting the interest rates by 1/2% next week, they need to let this sort itself out. Just my 2 cents.

RitcheyRch
12-06-2007, 04:37 PM
Agree 100%. Shouldnt have bought what you couldnt afford in the beginning.
Its just like insurance, someone is gonna pay for this and I'm guessing it will be the same people that were responsible in the first place. With talk of cutting the interest rates by 1/2% next week, they need to let this sort itself out. Just my 2 cents.

LhcBrad
12-06-2007, 04:43 PM
From https://www.stratfor.com/ This is what you have to meet to qualify.
* Mortgage had to be issued between January 2005 and July 2007
* ARM must reset January 2008 to July 2010
* You must not have more than 3% equity in your home (what? are you kidding me? if you put money down you're out of luck)
* Home must be worth more than the mortgage (ha ha ha ha ha!!!!)
* You must have income
* You must prove that you can make the payments
* You must not be more than 60 days past due
* Program is voluntary with the lenders - government has no authority or legal status

mickeyfinn
12-06-2007, 04:59 PM
From https://www.stratfor.com/ This is what you have to meet to qualify.
* Mortgage had to be issued between January 2005 and July 2007
* ARM must reset January 2008 to July 2010
* You must not have more than 3% equity in your home (what? are you kidding me? if you put money down you're out of luck)
* Home must be worth more than the mortgage (ha ha ha ha ha!!!!)
* You must have income
* You must prove that you can make the payments
* You must not be more than 60 days past due
* Program is voluntary with the lenders - government has no authority or legal status
Isn't one of the problems driving this mess the fact that home values are falling, preventing these people with stupid loans from being able to sell and pull out the equity?

Mandelon
12-06-2007, 05:03 PM
From https://www.stratfor.com/ This is what you have to meet to qualify.
* Mortgage had to be issued between January 2005 and July 2007
* ARM must reset January 2008 to July 2010
* You must not have more than 3% equity in your home (what? are you kidding me? if you put money down you're out of luck)
* Home must be worth more than the mortgage (ha ha ha ha ha!!!!)
* You must have income
* You must prove that you can make the payments
* You must not be more than 60 days past due
* Program is voluntary with the lenders - government has no authority or legal status
Well that looks like it will help 182 people.... :rolleyes:

LhcBrad
12-06-2007, 05:05 PM
Yep, but this is our Government at work here. I think the one who is the winner is Hilary because when this does not work she can blame the Republicans. She will say her plan was so much better and i can do the job unlike the Republicans.

socalmofo
12-06-2007, 05:10 PM
So you must have equity in your home, but not more than 3%? What a joke! So there will be 6 people this helps. Typical goverment program doesn't really help anyone.

thatguy
12-06-2007, 05:34 PM
Not getting into this, (mine is still worth about 50% more than I paid 3 years ago, believe it or not!) But I think that 3% may include more owners than you think. Considering the equity loan craze of the last 3 years. Many people borrowed their down payment right back within 18 months of closing. No?
Tommy

Flyinbowtie
12-06-2007, 05:40 PM
We just refi'ed, not due to any of the issues being discussed here, just had a chance to improve our rate/payoff date. Didn't need any $ or any of that crap. Both of or credit scores exceed 720. Signed the papers yesterday.
I'll tell ya what, this was no picnic. We used the same guy we went through last time back in '00, that one was done in 10 days. This deal, just as clean and no hiccups, took almost a month.
We have well over 50% equity in our home, and only needed to refi less than 220k.
The banks and money people are out of hand. The apprasier came out and did a very complete job, measured, checked permits, etc, etc. Place came in about where we thought it would, about 75k up from the '00 appraisal.He turned it in and then the actual money people wanted to lop about 40% off of the appraisal "for safety".
I was told they are doing this on a regular basis in Sacto and Placer county, we told them to stuff it and they caved.
My wife is in the insurance bizz, apparently lenders are also demanding tht borrowers obtain homeowners policies to meet the total value of the house and property, which is not legal!
Insurance co.'s cover structure replacement, not dirt replacement. Lenders are saying on the Q.T., "yeah, we know we can't make the borrower do it, but if they don't we won't fund the loan, it'll fall out of Escrow"
They're putting the title people and the insurance people between a rock and a hard place because of the poor business decisions they've made, and making EVERYONE pay for their screw-ups.
I am just a dumb retired cop, but I think this is going to get alot worse before it gets any better.

565edge
12-06-2007, 05:45 PM
My wife and I got F$%*ed by a mortgage company out of L.A. It was a sub prime lender and no I didnt buy what I cant afford. I had a fixed rate at 7.75 percent and and wanted to pull some money out. The house was in my wifes name and still is. She works at Applebee's as a waitress and makes 20,000 a year. They got here approved for $260,000. Her income only. Our rate was suppose to be a fixed rate at 6.9%. My total payment was going to be $1750 and some change with a impound account for taxes. I pay the insurance. It was a 80/20 loan. The first was on $208,000 and the second on 52,000.After a year and a half goes by and we started getting notices by the county that our taxes arent getting paid I started making phone calls. Find out they never started the impound. My first mortgage went up from $1250 to $1500 for the impound to start.Then they made me pay a additional $250 a month for the back escrow. That makes it $1750 a month. 6 months later I find out our mortgage is adjustable and its going from 6.9 to 9.9 percent interest. That took it to $2250. It is going to start to slowly go up to 13.9 percent. In January it was going up to 10.9 and my mortgage on the first is going to be near $2250 plus my second of $500. Thats $2750 a month for a $260,000 mortgage..It will be over $3000 in a few months. I can rent the same house for $1200 across the street. We got screwed... We are a first time home buyer and didnt understand anything. I learned from my mystakes. I hounded my Lender(service company) for 3 months about doing a loan modification. It took alot of patience and me calling 3 times a day to listen to them tell me they dont offer that service. I need to refinance.Not that easy when my house is now worth $240,000 and I owe $260,000. Foreclose or shortsale..Alot of people shortsale not knowing off the debt they are going to owe the irs.After 2 months of me calling I got my name on a referal to the Loan Modification department. I never gave up. I was not going to lose my home.I read alot off the internet and did what I read. My december payment has been reset and I now got 6.9 Percent interest fixed for the life of the loan. I didnt want a hand out.We signed the papers. It wasnt like we had a 2% percent loan for 5 years then went adjustable and I bought out of my league. The lender bent us over.... We signed the docs and it went in effect the end of november. It did not cost me a dime. Pm me and will give out the info....Good luck out thier...

thatguy
12-06-2007, 05:51 PM
We just refi'ed, not due to any of the issues being discussed here, just had a chance to improve our rate/payoff date. Didn't need any $ or any of that crap. Both of or credit scores exceed 720. Signed the papers yesterday.
I'll tell ya what, this was no picnic. We used the same guy we went through last time back in '00, that one was done in 10 days. This deal, just as clean and no hiccups, took almost a month.
We have well over 50% equity in our home, and only needed to refi less than 220k.
The banks and money people are out of hand. The apprasier came out and did a very complete job, measured, checked permits, etc, etc. Place came in about where we thought it would, about 75k up from the '00 appraisal.He turned it in and then the actual money people wanted to lop about 40% off of the appraisal "for safety".
I was told they are doing this on a regular basis in Sacto and Placer county, we told them to stuff it and they caved.
My wife is in the insurance bizz, apparently lenders are also demanding tht borrowers obtain homeowners policies to meet the total value of the house and property, which is not legal!
Insurance co.'s cover structure replacement, not dirt replacement. Lenders are saying on the Q.T., "yeah, we know we can't make the borrower do it, but if they don't we won't fund the loan, it'll fall out of Escrow"
They're putting the title people and the insurance people between a rock and a hard place because of the poor business decisions they've made, and making EVERYONE pay for their screw-ups.
I am just a dumb retired cop, but I think this is going to get alot worse before it gets any better.
I think you are right.
Unfortunatley, the same people who overbought are the ones refinancing for the worst reason, to pay off revolving charge accounts (which quickly getted racked up again) and such. Only leading to further overextending and inevitably the panic sale or forclosure.
Tommy

RitcheyRch
12-06-2007, 06:11 PM
Heard on the radio that this is only going to help about 240K people out of 2M ARMS that will reset between now and 2009.

brianthomas
12-06-2007, 06:32 PM
My wife and I got F$%*ed by a mortgage company out of L.A. It was a sub prime lender and no I didnt buy what I cant afford. I had a fixed rate at 7.75 percent and and wanted to pull some money out. The house was in my wifes name and still is. She works at Applebee's as a waitress and makes 20,000 a year. They got here approved for $260,000. Her income only. Our rate was suppose to be a fixed rate at 6.9%. My total payment was going to be $1750 and some change with a impound account for taxes. I pay the insurance. It was a 80/20 loan. The first was on $208,000 and the second on 52,000.After a year and a half goes by and we started getting notices by the county that our taxes arent getting paid I started making phone calls. Find out they never started the impound. My first mortgage went up from $1250 to $1500 for the impound to start.Then they made me pay a additional $250 a month for the back escrow. That makes it $1750 a month. 6 months later I find out our mortgage is adjustable and its going from 6.9 to 9.9 percent interest. That took it to $2250. It is going to start to slowly go up to 13.9 percent. In January it was going up to 10.9 and my mortgage on the first is going to be near $2250 plus my second of $500. Thats $2750 a month for a $260,000 mortgage..It will be over $3000 in a few months. I can rent the same house for $1200 across the street. We got screwed... We are a first time home buyer and didnt understand anything. I learned from my mystakes. I hounded my Lender(service company) for 3 months about doing a loan modification. It took alot of patience and me calling 3 times a day to listen to them tell me they dont offer that service. I need to refinance.Not that easy when my house is now worth $240,000 and I owe $260,000. Foreclose or shortsale..Alot of people shortsale not knowing off the debt they are going to owe the irs.After 2 months of me calling I got my name on a referal to the Loan Modification department. I never gave up. I was not going to lose my home.I read alot off the internet and did what I read. My december payment has been reset and I now got 6.9 Percent interest fixed for the life of the loan. I didnt want a hand out.We signed the papers. It wasnt like we had a 2% percent loan for 5 years then went adjustable and I bought out of my league. The lender bent us over.... We signed the docs and it went in effect the end of november. It did not cost me a dime. Pm me and will give out the info....Good luck out thier...
1) It was not a fixed or you could sue them.
2) You may not have had an attorney at the close, SOMEONE should have told you it is really needed. I bought my first house with my dad looking over my shoulder so I knew what to look for.
3) Hate to say it but you signed what was pushed in front of you, not a good idea, it said adjustable or you can throw it back at them tomorrow.
Comedy of errors on your side with a shell game on the other. Not saying you were duped but ,,,,,,,,,,,,, watch your butt next time. This is what they do!

ParkerSteve
12-07-2007, 03:48 PM
You mean I have to keep my 4.9 intrest for another 4 years. Darn I was looking to pay more so I could deduct more from my tax's..Be glad you don't see another vacant house in your neighborhood, which will probably quicken the reduction in value of your house.

LhcBrad
12-07-2007, 03:57 PM
Here is a beauty for you and its only $340,000 In Modesto. Yeah ok drop about $200,000 from the price and you MIGHT sell it.http://***boat.com/forums/attachment.php?attachmentid=44729&d=1197071832

catman-do
12-07-2007, 05:09 PM
My wife and I got F$%*ed by a mortgage company out of L.A. It was a sub prime lender and no I didnt buy what I cant afford. I had a fixed rate at 7.75 percent and and wanted to pull some money out. The house was in my wifes name and still is. She works at Applebee's as a waitress and makes 20,000 a year. They got here approved for $260,000. Her income only. Our rate was suppose to be a fixed rate at 6.9%. My total payment was going to be $1750 and some change with a impound account for taxes. I pay the insurance. It was a 80/20 loan. The first was on $208,000 and the second on 52,000.After a year and a half goes by and we started getting notices by the county that our taxes arent getting paid I started making phone calls. Find out they never started the impound. My first mortgage went up from $1250 to $1500 for the impound to start.Then they made me pay a additional $250 a month for the back escrow. That makes it $1750 a month. 6 months later I find out our mortgage is adjustable and its going from 6.9 to 9.9 percent interest. That took it to $2250. It is going to start to slowly go up to 13.9 percent. In January it was going up to 10.9 and my mortgage on the first is going to be near $2250 plus my second of $500. Thats $2750 a month for a $260,000 mortgage..It will be over $3000 in a few months. I can rent the same house for $1200 across the street. We got screwed... We are a first time home buyer and didnt understand anything. I learned from my mystakes. I hounded my Lender(service company) for 3 months about doing a loan modification. It took alot of patience and me calling 3 times a day to listen to them tell me they dont offer that service. I need to refinance.Not that easy when my house is now worth $240,000 and I owe $260,000. Foreclose or shortsale..Alot of people shortsale not knowing off the debt they are going to owe the irs.After 2 months of me calling I got my name on a referal to the Loan Modification department. I never gave up. I was not going to lose my home.I read alot off the internet and did what I read. My december payment has been reset and I now got 6.9 Percent interest fixed for the life of the loan. I didnt want a hand out.We signed the papers. It wasnt like we had a 2% percent loan for 5 years then went adjustable and I bought out of my league. The lender bent us over.... We signed the docs and it went in effect the end of november. It did not cost me a dime. Pm me and will give out the info....Good luck out thier...
Im guessing it was the broker that screwed you, not the lender. Remember MOST companies that have "lender" in the name are actually brokers, some opperating in a matter in which they can fund on their own dime, however they are corresopndant brokers that fund on warehouse lines. Essentially pre-arranged sets of guidelines to fund based upon the contingency that a REAL lender/ investor will buy that paper and free up the warehouse line.
1) ARM Disclosure- if this was done during 2004 or after, there must be an arm disclosure in your docs. This is signed by you acknowledging you know your loan will reset itself at a given date, and thereafter at other intervals.
2 Impounds- The approval from the lender, or the HUD1 should show the loan either witholding impounds, or opting out of an impound account. Many lenders will put it on the approval because there are rate-hits for not having impounds in many cases, and on the HUD1 it will show the amount of money held back in order to establish future/ back impounds. If you didnt see either, then your LO screwed you. After 2003 this became a big problem with LO's taking out impounds after docs being signed and not letting the borrowers know. Most lenders started requiring a written acknowledgement from the borrower stating a request to take out impounds. Around 2005, many lenders would require a partial redraw because they found many LO's would just send over a BS letter.
3) it sounds like you already have it taken care of. But, there is a proposition that the Gov. just passed in which will assist 4 of the subprime lenders (countrywide included) in setting these loans to fixed rates for the amortized term.