Mortgage Modifications?

[hereforinfo]

It is unfair to pass judgment on someone for wanting a home to live in, raise their children in, buying a home is a big part of living the american dream. Do you think they should have been willing to let all these years pass them by because of an overinflated housing market?

Well, yes I think that if someone can't afford to buy a house they have no choice but to wait. Otherwise we'll have a bunch of risky loans and a real estate bubble and eventually all those people won't be able to pay the mortgages that they can't afford, causing millions of foreclosures, and then we'll have a mortgage meltdown and then our economy will go into a deep recession and possibly a depression, unemployment will hit 10%...Oh wait...that did happen!

[hereforinfo]

I don't know how anybody could buy a house they could afford over the past 5 to 7 years.

Oh please. People were buying 3000+ square feet homes and going crazy with upgrades, when they could have bought a 2000 sf home half the amount. Home ownership is not a right, it's earned. Our society is centered around entitlement. Everyone feels they're entitled to more, more, more. Instant gratification, no one wants to wait they want everything NOW. If you can't afford to buy a home, then you rent or you buy smaller in a less expensive neighborhood. It's not the government's or the taxpayers' responsibility to make sure everyone owns a home or has a bonus room and granite countertops.

That is why we are in this mess (obviously along with several other reasons, greedy lenders, lack of regulation and oversight, etc.), it's not the people who were struggling to make ends meat that caused it - it's the people who wanted to keep up with the Joneses and way over leveraged themselves. And now there are a lot of people suffering and struggling because of them.

[B65]

I agree with you

I have lived my life by never judging people. I feel the people that do, really did not ought to throw stones, especially when their houses are made of fragile glass. I used to be married to a very wealthy man and after being left penniless with 2 children 10 years ago and where my life is at now, you just never know when it will all come tumbling down... the people that judge others quite frankly can kiss my a** karma is a bit**! I am in the real estate business and let me tell you 4 years ago unless you wanted to raise your kids in a slum with drug addicts you had to pay a fortune to buy a house. 10 years ago in the states houses were cheap, it was disgusting the way the prices tripled! I saw agents and appraisers do what they could to push up prices to line their own pockets with huge commisions and mortgage brokers fiddle the papers so they could get theirs..... so if someone stretches to buy a house i feel for them..not judge them, they also got lured into digusting mortgages, what should they have done?

In the states unless you live near a huge city( where house cost a FORTUNE) has to rely on cars unlike say a place like the Uk where ppl can walk to stores and work, so when gas soared and food and utilities that house payment became tight really quick... most people in the US cannot choose to walk, also the ppl that have to pay thousands in insurance for health every month, how in he** are they supposed to pay that, houses need to be cheap in the US because of the other expenses they have to pay out of pocket unlike other countries. I am fortunate most of my heath care is free it is military, but the average american is not so lucky...

My heart bleeds for every person suffering in the US right now, and to come on this site with your high and mighty boring opinions does not help anyone.

Hopefully one day, you will be judged.

B

[ansky0007]

I have no problem with modifications that are FAIR and help people who want to help themselves. Extending out mortgages to 40 years, lowering ridiculous interest rates, etc. But writing down the principal doesn't make sense. If you can't afford the house for the price you paid, at a resonable interest rate, then you can't afford the house. Now if someone lost their income, that's one thing. But if that's the case, they don't qualify for a modification anyway. I am all for some other assistance to help the jobless during this horrible economy, just not writing down a chunk of the mortgage owed.

If they start writing down principal then every homeowner in the country will stop paying their mortgage so they can get in on the action. Then all hell will break loose, like nothing we've seen yet.

I have to sort of agree... There should be something in place for every home owner if they are going to start writing down principal. If you are going to start writing everyones principle down for everyone who is behind then what is going to happen? Everyone is going to stop paying their mortgages because if the person next door just saved $100k on his mortgage then sure as hell every neighbor making their payments on their higher mortgage will be like... F that... and they will stop paying also.

[eddiep]

If you can't afford the house for the price you paid, at a resonable interest rate, then you can't afford the house.

I don't know how anybody could buy a house they could afford over the past 5 to 7 years. The cost of homes, especially in some areas in this country have been outrageous! I have often thought over the years thank god we are not trying to buy a house now. It is unfair to pass judgment on someone for wanting a home to live in, raise their children in, buying a home is a big part of living the american dream. Do you think they should have been willing to let all these years pass them by because of an overinflated housing market?

[hereforinfo]

NO.. however, would you prefer to see a family homeless or would you prefer to pay more out of your paycheck because they end up on public assistance because a domino effect occurs?

I have no problem with modifications that are FAIR and help people who want to help themselves. Extending out mortgages to 40 years, lowering ridiculous interest rates, etc. But writing down the principal doesn't make sense. If you can't afford the house for the price you paid, at a resonable interest rate, then you can't afford the house. Now if someone lost their income, that's one thing. But if that's the case, they don't qualify for a modification anyway. I am all for some other assistance to help the jobless during this horrible economy, just not writing down a chunk of the mortgage owed.

If they start writing down principal then every homeowner in the country will stop paying their mortgage so they can get in on the action. Then all hell will break loose, like nothing we've seen yet.

[Mi Bankruptcy]

Wow, I am so glad someone can sit on a stool and judge. I put down 3k for my home. I used FHA. I decided not to take the ADJ rate mortgage for fear I wouldn't be able to pay for my home later on. If it was not for my father and his real estate investments and my interest in real estate I may have fallen for the low adjustable rate and suffered increased rates and higher house payments. My education taught me.. Take the higher fixed interest rate, pay the higher house payment. I bought a home that should have not passed the FHA inspection. However, I knew how to play the game and asked the sleazy broker if he could recommend any home appraisers. A broker that I am sure took advantage of people. I was well aware of what my home was worth. I have my taxes & insurance escrowed. I have never been late for a house payment( automatically deducted on the 15th).

Now, while you sit and judge not everyone has had the privilege of receiving an education on buying a home. People don't know how to look at the local market to tell if their home is over priced or fortunately for me under priced.
I once judged what kind of idiot would allow themselves to be 20-30k in credit card debt..My being the idiot or not receiving the education about effects of credit slowly through time;I fell into the credit trap. Credit and health costs, some my fault, some not.

Why don't you try looking at the whole picture and showing some compassion. No one wants to lose their home, no one want's bankruptcy. No one buys a home so they can lose it. Surely you can understand this. Is life fair to people paying on time that someone would receive a write down on their principle. NO.. however, would you prefer to see a family homeless or would you prefer to pay more out of your paycheck because they end up on public assistance because a domino effect occurs?

I'm not in bankruptcy, not at all. You have to understand how people like us are angry about paying for everyone else's mistakes. Of course you are human and in hindsight made the wrong choices, but it is still very frustrating to keep getting kicked in the ass when we didn't make those choices. We didn't take the same risks, we were careful and still ended up losing half the value of our home because of what others did. Because we didn't take risks and didn't screw up, we have to continue to pay a higher interest rate on an upside down home, while people who did the wrong thing get a lower rate.

IMO, if they are going to write down anyone's principal they need to do it for every mortgage borrower in the country. We put 20% down and are upside down on our home, yet someone who put down nothing could possibly get a principal writedown and end up with equity? That is so wrong.

[Trixie007]

He was in charge of paying the bills and I was in charge of making the bills.

I know that's not really funny, but that made me laugh so hard I think I pulled my stitches! Thanks for the giggle.

[eddiep]

Dr. Drew is so wise isn't he! It is true I was bankrupt years ago too but I didn't know it. We didn't realize it but we paid our bills (indirectly) and lived our lives by borrowing money we could never pay back. We paid our minimum payments and thought we were doing great. Or should I say I thought that! I have been slowly killing my husband for years. He was in charge of paying the bills and I was in charge of making the bills. Not the best plan, I have to admit! He once asked me if I thought that we had a magic checkbook, that I could keep writing checks and the money just magically appear. The magic is gone but the marriage is still strong, Thank God!

[eddiep]

everyone but hereforinfo

[Tromploi]

You are not alone in that bed! Most of the country is in there with you. If only I didn't throw out my crystal ball!!!!

This giant bed we are all in is what makes this forum SO useful. We all here have similar stories to tell. I watched a Dr. Phil not long ago on finances, and he said to this couple, "you were bankrupt 3 yrs ago, you just hadn't declared it yet". Ding ding ding!!! NOOO kidding, we were (maybe not THREE years but),,,,,we really were.

[eddiep]

You are not alone in that bed! Most of the country is in there with you. If only I didn't throw out my crystal ball!!!!

[Tromploi]

Hereforinfo, I actually agree with you and I am IN BK and want a loan mod. I paid $595K for a house now worth about $440K (and we put down 30%). I don't expect a principal reduction and I really don't think anyone should. We willingly paid this for our house,,,,everyone else did too. IF they can work out something with me to enable me to stay here after my divorce, great, if not, I made my bed, I will walk away from this home I love. I DO think that with so many folks out of work, that asking the banks to essentially make less profit by lowering rates and extending loan yrs is not out of line.

I made this WHOLE mess of a bed I am lying in. If I am being honest with myself we ultimately lived beyond our means, if we hadn't, we wouldn't be in BK. We'd be in a smaller house, not on 5 acres, with MANY less animals and would still have our old paid off cars. I am ashamed and embarrassed at where I am and what I have done, but I damn sure have learned from it and will never be here again. Yes, I said never.

[hereforinfo]

Good point, eddiep!

[eddiep]

hereforinfo
I wouldn't worry too much, the banks aren't interested in helping anyone but themselves!