Homeowners re-defaulting after getting aid

[sahd2one]

Surprised? I think not. Some people are not MEANT to be homeowners and lack the maturity to be homeowners.

http://www.reuters.com/article/GCA-Housing/idUSTRE4B75A220081208

Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.

The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.

Still waiting for the ability to cram down my mortgage even though I pay on time and even pay more towards the principal.

 

[Family Fun Mom]

Surprised? I think not. Some people are not MEANT to be homeowners and lack the maturity to be homeowners.

http://www.reuters.com/article/GCA-Housing/idUSTRE4B75A220081208



Still waiting for the ability to cram down my mortgage even though I pay on time and even pay more towards the principal.

What? You mean a bailout didn't magically fix things?

 

[c4a]

What? You mean a bailout didn't magically fix things?

And the guy in the article was surprised.

 

[Fast Pass]

That is not surprising.
A man who always had stuffed repo'ed, and defaulted on a car loan, a business loan and who owed alot of people money was just given a house loan at a bank back in my old hometown!(I found out from a mutual friend)
This bail-out is a joke to the taxpayers. The only one profiting is the banks.

 

[C.Ann]

The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.
----------------------------

And I don't suppose he bothered to see if any of these people still have jobs anymore..

I think I'll wait to hear the whole story before I come on here and start yet another thread of, "See? I told you so!!"

A little less time searching endlessly for these type of topics to prove your "points" - when you don't have all the info - would be a nice change, don't you think?

 

[Castlebound]

The article that I read on it pointed out that many of these loans that were adjusted kept the interest rates the same and just tacked on the missed payments to the end of the loan. Now if you couldn't make the payment before the adjustment how are you going to make the "new" payment that is the same?
http://money.cnn.com/2008/12/08/news/economy/mortgage_summit/index.htm?postversion=2008120818

 

[c4a]

The article that I read on it pointed out that many of these loans that were adjusted kept the interest rates the same and just tacked on the missed payments to the end of the loan. Now if you couldn't make the payment before the adjustment how are you going to make the "new" payment that is the same?
http://money.cnn.com/2008/12/08/news/economy/mortgage_summit/index.htm?postversion=2008120818

It, also, pts. out that many of the people may have other debt. Now my question would be...how many of those have made living credit card to credit card a way of life?

 

[mikehn]

And you wonder why so many people are opposed to bailouts. Its not that we dont have compassion.

 

[ntsammy5]

 

[minniecarousel]

Yeah, my first thought was: "how many of these people still have jobs?"

I know a few people who walked away from their homes (one from 23 years and the other 12 years). I keep wondering where the bailout is for them? Both families could have kept their homes if the payments hadn't gotten out of control (one borrowed too many times to buy a business and the other to send their kids through college). The fact that they were upside down on their mortgages would have been OK if the interest rates had settled down sooner.

 

[c4a]

And you wonder why so many people are opposed to bailouts. Its not that we dont have compassion.

Exactly. Have no problem what so ever helping anyone who is putting forth some kind of effort to help themselves. I have a MAJOR problem with helping people who then turn around...and do not learn from previous mistakes...instead keep making the same ones.

 

[sahd2one]

What? You mean a bailout didn't magically fix things?

Nope. People who got into bad loans to begin with or bought more than they could afford or could not handle money are just defaulting all over again.

We have over 93% employment in this country. Things are not as DIRE as some insist on making it. This is nowhere near as bad as it has ever been. Not by a long shot.

 

[wall*e2008]

Yeah, my first thought was: "how many of these people still have jobs?"

I know a few people who walked away from their homes (one from 23 years and the other 12 years). I keep wondering where the bailout is for them? Both families could have kept their homes if the payments hadn't gotten out of control (one borrowed too many times to buy a business and the other to send their kids through college). The fact that they were upside down on their mortgages would have been OK if the interest rates had settled down sooner.

Why should they get a bailout? They had a mortgage they could afford and then used the home as an ATM machine. This is never a good idea. All the experts say to let the kids take out loans and not mortgage the home for their college education. Never use your home to buy a business. If you lose the business you lose everything.

 

[ntsammy5]

FWIW - none of these people have gotten any bailout money - the bill was just passed a few weeks ago. No one's had time to get new terms and re- default! Easy big fella!

 

[c4a]

Yeah, my first thought was: "how many of these people still have jobs?"

I know a few people who walked away from their homes (one from 23 years and the other 12 years). I keep wondering where the bailout is for them? Both families could have kept their homes if the payments hadn't gotten out of control (one borrowed too many times to buy a business and the other to send their kids through college). The fact that they were upside down on their mortgages would have been OK if the interest rates had settled down sooner.

Why could the kid not work and go to school? Lots of us have done it.
Why is the one taking out a 2nd mortgage on his house to pay for a business? Not sound business sense.

Have people not heard of saving? Or instead of slamming down a plastic IOU that has an interest rate tacked onto the payment (and lets face it...the ones who pay their cc's off every month on time and have low interest rates are not the ones in this mess)...put it on layaway (free) and pay it off. But that doesn't come with instant gratification. Nor does working up to buying your house...having a down payment, & decent credit.

By putting money down when the bought their home, getting a lower fixed 30 year loan that came with a payment that was affordable, and buying a home within their present means (not predicted earnings bracket)...the majority of these people would not be in this mess. By making one extra payment a year on their affordable mortgage towards principle...they would have shaved years off of the mortgage.

Instead, they bought more than they could afford gambling on their future job security, at a bargain basement adjustment rate that ballooned on them, and with little or no down payment. Not only were they not able to afford to make their house payment, they couldn't put anything towards the principle to bring the interest rate down. With the added in balloon payment they now owe more than their house's market worth.

Pt. blank they had the gimme me..gimme me...gimme me's. Gotta' have it now.

Yes, the mortgage companies and banks are partially to blame...they did the paper work and approved it. However, the homeowner's are also to blame...they signed the contract. They agreed to the terms in the contract. If they couldn't understand the terms...they shouldn't have signed.

 

[C.Ann]

We have over 93% employment in this country. Things are not as DIRE as some insist on making it. This is nowhere near as bad as it has ever been. Not by a long shot.

-------------------

You can say that from now until the cows come home and will still will not change the fact that there are over 10 million people out of work right now and several more million who have had their hours cut back to part-time..

You just don't get it - do you?

 

[Missy1961]

Nope. People who got into bad loans to begin with or bought more than they could afford or could not handle money are just defaulting all over again.

We have over 93% employment in this country. Things are not as DIRE as some insist on making it. This is nowhere near as bad as it has ever been. Not by a long shot.

Let's tell that to the thousands who are out of work.
http://money.cnn.com/2008/12/09/news/economy/job_cuts/index.htm?postversion=2008120914

 

[mikehn]

We have over 93% employment in this country. Things are not as DIRE as some insist on making it. This is nowhere near as bad as it has ever been. Not by a long shot.

You will NEVER convince the other 7%, never.

 

[sahd2one]

Why could the kid not work and go to school? Lots of us have done it.
Why is the one taking out a 2nd mortgage on his house to pay for a business? Not sound business sense.

By putting money down when the bought their home, getting a lower fixed 30 year loan that came with a payment that was affordable, and buying a home within their present means (not predicted earnings bracket)...the majority of these people would not be in this mess. By making one extra payment a year on their affordable mortgage towards principle...they would have shaved years off of the mortgage.

Yes, the mortgage companies and banks are partially to blame...they did the paper work and approved it. However, the homeowner's are also to blame...they signed the contract. They agreed to the terms in the contract. If they couldn't understand the terms...they shouldn't have signed.

Again Bravo!

The change in employment status is such a small number of this bigger problem of people buying more homes than they could afford and using their houses as an ATM. I am positive these people who took advantage of the HopeNow program would still re-default even IF they lost a job. Of course there is nothing to indicate that this is the case.

The sad hard truth is that we always go through periods of expansion and contraction. If one person can do a job more efficiently than two, guess what. That is just business.

Mr. Obama though is going to solve everything. Some people just do not get it, you have to take responsibility. There is work, there is opportunity out there, some just are going to have to sacrifice to find it or create their own opportunity and not rely on some magic plan.

Seriously those who think things are DIRE right now really should study some history.

 

[sahd2one]

You will NEVER convince the other 7%, never.

Well considering that all economists consider 5% employment to be full employment, things really are not that bad at all.

Some people can live their lives thinking the glass is half empty or they can look at the 93% who are employed.

Some people can look at 2 million facing foreclosure or focus on the 150 million who are doing just fine.

I know where I want to be.