Why is anyone in America paying their mortgage today?
Fed moves to help distressed homeowners
WASHINGTON (AP) — With foreclosures spiking, the Federal Reserve is taking steps to try to keep some distressed borrowers in their homes.
Under the program, the Fed has a number of options to provide relief, including lowering the amount the homeowner owes on the mortgage, reducing the interest rate or lengthening the term of the loan.
It's unclear how many homeowners would benefit. However, the relief plan would apply to the billions of dollars of mortgage assets the Fed is holding on its books because of last year's bailouts of Bear Stearns and insurer American International Group.
In general, a borrower must be at least 60 days delinquent to qualify for help, although the Fed has leeway to make some exceptions.
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25 comments:
Why is anyone in America paying their mortgage today?
I am not. I am paying my rent. Somehow, an eviction does me no good. I am sure Nick is laughing at me.
Why pay a mortgage with all this government help flying around? I mean I'm just a helpless homedebtor who wanted to show off to their friends how big a house they could buy. How was I supposed to know there was a limit to my HELOC's? How else was I supposed to pay for all this crap and vacations I bought?
Keith, if everyone in America didn't pay their mortgage, then we would have some serious problems. But I am happy that there is a very large portion of Americans who are still paying their mortgage, credit card bills, student loan debt, etc...
I had a co-worker told me that "man, I am just trying to pay off my %5500 in credit card debt". I told him "Mike, just don't pay it and pretty soon, they will be begging you to pay it and then you can string them along and get a good reduction in your principal". His response was "well that would be immoral" and that is when I stopped the conversation because he is an idiot! What is immoral is the banks taking their so called toxic loans and handing it off to the taxpayer! I am only playing their games according to their rules Sashers!
ummmm.
why does anyone live in Eurabia?
You're a born and bread dope if you think principal reductions are coming. They'll offer interest rate reductions and longer loan terms but that's it. If they start cutting principals there's going to be a bonanza and EVERYONE is going to stop paying. Deflation is here and there's nothing you can do about it.
Only chumps pay mortgages. That's soooo 20th century.
Pretty soon, they won't. Its been happening, as mentioned here and several other places, in California, Nevada, Arizona, Florida. Jingle mail. We've all probably read a few stories here and there of people stringning foreclosures out for a year or more recently. But again, its pockets and a small number. It will spread as the train keeps rolling down the tracks. It will spread to other states, it will spread to the credit card debt, it will spread to everything.
The bankers and thier money manipulator friends need to wake up and realize...
AMERICANS ARE NOT PAYING BACK THE MONEY, EVER.
Now I don't mean literally every single American will default on all thier loans. Of course the vast majority of people will continue to pay thier debt. But the percentages will be much higher than anything ever even considered possible by these crooks. It will be enough to completely fuck everything up. They won't know what hit them.
Oh, did I mention that the California State Controller said yesterday that as of Feb 1st, they won't be able to send out anymore welfare checks? Of course, they are not sending tax refunds either. That should make the natives happy, don't you think? You said you wanted to see some Americans riot, take it to the streets. Well, that should just about do it.
principal reduction is the carrot they use so the FBs will talk to them, then they try to trick them into staying and paying on their underwater stucco castle. It won't work, FBs are grifters and you can't con a con man. (finger on side of nose)
"His response was "well that would be immoral" and that is when I stopped the conversation because he is an idiot!"
My response would have been.. to keep my credit score so that I can get into an apartment complex w/ paid for security details. I suspect that'll be what separates people from being safe and being targets for random muggings and burglaries.
I have a friend who called the bank to try for a principal reduction, but he was told that he didn't fit the "f*cked" profile, because he's making the payments on time and has a good job. So he asked the bank if he should stop paying his mortgage in order to fit the profile. The bank didn't know how to answer. True story, happened two days ago.
Isn't that crazy sh!t or what? Man, this country is a mess!
Cutting up checkbook now. Held out through O8 in my Ca mc mansion.. Now Im joining the Bailout.. Whoo.. Need to do something about my 96K W9 though.. Mmmm Might need to take on more debt...
The bailout is fiction, B.S., a fairy tale, and I've yet to hear of anyone getting relief from their plight. In my area if you don't pay, the bank or landlord forecloses and they throw your ass out.
Nick, I know what you mean about playing by the other guy's rules. Cops break laws all the time, so I do what I want. I run red lights, I shoplift, I sell dope. A few weeks ago I saw a laptop on a car seat, so I broke the window and made off with it. If I can take it, it's mine by right.
I know that a lot of old people have shady pasts. They are not immune. I'm just playing by their rules. They took advantage of people that were vulnerable, now they are vulnerable. Nick, I hope you're not over 70 and living in my neighborhood LOL.
I used to be a young liberal who believed in the rule of law, but once I saw how the world really works I figured, "What can one guy do?" And besides, why should I go first?
Because I'm an Idiot!
I bought (at the wrong time)
I pay what I owe
Like my grandfather said,
"Honor your debts"
You bought it, you pay for it
(but don't buy what you can't afford)
"If I can take it, it's mine by right."
Anon, you are talking like a scumbag. What happened to you along the way? You have some problems man. You are a dangerously angry person. Think about it.
The corrupt Senators started this bail-out horse shit to avoid "discovery " of the true liable parties . The governments actions have always been a game of change the bag-holder of loss to the taxpayers .
We live in a new world of Obstruction of Justice in the name of saving Bad Business ,Bad Banks and the rich and elite . The gamblers have won in the biggest financial rip off in history .
Cheat on your taxes.
Tim Geitner, our new treasury secretary, did. If the IRS doesn't catch you within 4 years, they can't charge you the tax. He paid those $40,000 in taxes only because he was going to be Treasury Secretary. Otherwise he would've gave the IRS the bird.
Only the poor pay taxes
"Cheat on your taxes.
Tim Geitner, our new treasury secretary,...is a crook. As bad or worse than Paulson. Obama couldn't have picked a worse treasury secretary than him if he tried.
As for paying your mortgage, I owe $60K so I pay 'cos my house is worth a lot more than I owe. If I'd be underwater I'd see no reason to throw good money after bad. The deal I made with the bank was "I pay or the bank gets the house", my choice. In the meantime you get to stay rent free for about a year.
If you're under water and are still making your payments you're a fool, plain and simple.
Anonymous said...
"If I can take it, it's mine by right."
You keep what you kill is the Necromonger way
Don't pay taxes. Unless you have 3rd party reporting like W2 income or 1099 income. Then you are pretty much fooked. Other people like Keefer, who live overseas on a cash and barter economy should stop being sucker patriots and give uncle sam the bird. Stop paying to fund this insanity.
Vote with your feet. Stop paying taxes where ever possible.
Don't feed this machine any longer!
-Mike
You keep what you kill is the Necromonger way
LOL
Hey Keith, please check this blogger because he's doing a great job:
www.miamicondoforum.com
GDep II is here folks! Banks are now foreclosing on businesses even if they are paying their debt on time! It's a pre-emptive foreclosure strike as banks are getting ready for the looming wave of widespread bankruptcies and the subsequent layoffs.
With the unemployment rate likely to accelerate in the coming months, I don't see how the Fed can stop the housing deterioration.
My advice to anyone underwater: Don't wait for the Fed's help. Do your homework, and if you can convince your bank, a short sale is your best bet right now. You need to get out of that mortgage, because things are going to get worse and the value of the house you're in is going to keep tumbling in the foreseeable future-- I predict that the US housing market won't bottom out until they go back to yr. 2000 prices in most states, and to 1998 values in the most distressed cities.
IMO, only a short sale will help you get out of that upside-down house without running the risk of having your credit history tarnished for ten years. But, again, you need to do your homework and look at all the pros and cons, including any tax liabilities if you elect a short sale.
Who cares about "credit ratings?"
Every single one of the defaulted "prime" and "Alt-A" mortgages was given to people with FABULOUS credit scores!
If you don't borrow a lot, your credit score is lower than if you borrow and don't pay on time.
Fuck "credit scores." They're going to be the next big joke in this economic situation, along with "home equity" and "income property" and "steady job."
Anonymous said...
I have a friend who called the bank to try for a principal reduction, but he was told that he didn't fit the "f*cked" profile, because he's making the payments on time and has a good job. So he asked the bank if he should stop paying his mortgage in order to fit the profile. The bank didn't know how to answer. True story, happened two days ago.
Isn't that crazy sh!t or what? Man, this country is a mess!
============================
I talked to a customer yesterday in the same boat. He got laid off from GM, $85000/yr, and four weeks later his division was terminated, in other words he would not be called back off of layoff, his whole section in the plant was eliminated. Due to the screwy unemployment laws, when this happened, he was notified by the state that he was no longer eligible for unemployment benefits, don't ask me why.
Anyway, he calls his bank first thing to make them aware of his upcoming "aint no money to send you" status, and try to work something out in advance.
In this case, he said the banks loan officer told him to stop making payments IMMEDIATELY, and in 60 days, she would be CALLING HIM to offer better terms, lower rate, whatever. But as long as he was responsible, and continued to make payments on time, there was nothing she could do.
Oh yea, $85000/yr, $275000 house, 10% down, thirty year note. Responsible guy, did everything right. Now to survive, he has to turn deadbeat. Go figure!
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