Where some of the bailout $$ is going...

[Carlota69]

As you may or may not know, I work in radio. The other morning there was a guy in our break room discussing and advertising schedule with one of our sales guys. he was chatting about foreclosures and a certian program designed to help out people going thru a foreclosure. Well that perked my ears, because I am one of those people.

Apparently, the deal is this: if you meet the basic requirements for this program, the bank has to renegotiate your loan at 10% below the current value of the home. The requirements? (All of these requirements are tagged with--and the value of home was dropping and or/house pymts went up because of Sub-prime loan/predatory lending)
1) You've lost your job and are were unable to keep up on your home
2) You were sick and out fo work for a period of time, and unable to stay current.
3) You left work to care for a sick relative/family member and were unable to stay current.
4) income has dropped (paycuts) due to financial cuts/economy
5) house pymt went up becasue of Sub/prime loan

There's more to the situation, and I'm gonna get more direct info from the guy and will share when it comes available. I believe I'm talking to him later today. Anyways, the funding for this program comes from the bailout (150 mill i think he said). And again, it is centered around people who were involved in predatory lending practices, and or, having housing lose enormous value due to said practices. ie, your neighbor's foreclosure dropping the value of your home and you are unable to stay current due to sickness, loss of job etc)


I will make sure I get all the info, in case you are interested and also to make sure I am compleltely accurate on all accounts. It was a semi-quick conversation becasue I had to get to the Air-Chair. So I may be off on somethings. but that was the basic jist of the conversation.

[petegz28]

So because I am not getting foreclosed on cause I am paying my mortgage, I must pay top $ because people (not you specifically) signed onto mortgage agreements they never should of in the first place?

I know people played on the ignorant. But that is no excuse for said ignorance.

So now my house loses value with everyone elses yet I still have to pay my 100% of my mortgage? WOW!

I hope you are real proud.

[Carlota69]

So because I am not getting foreclosed on cause I am paying my mortgage, I must pay top $ because people (not you specifically) signed onto mortgage agreements they never should of in the first place?

I know people played on the ignorant. But that is no excuse for said ignorance.

So now my house loses value with everyone elses yet I still have to pay my 100% of my mortgage? WOW!

I hope you are real proud.

Wow. Not really. You dont even know my situation, so funny for you to judge. And I'm not going to particpate in the program, just getting info for advertising purposes.

But you a real wonderful human being, Petty.:thumb:

[petegz28]

Wow. Not really. You dont even know my situation, so funny for you to judge. And I'm not going to particpate in the program, just getting info for advertising purposes.

But you a real wonderful human being, Petty.:thumb:

I didn't judge you. Which is why I said "not you specifically". :spock:

[Carlota69]

I didn't judge you. Which is why I said "not you specifically". :spock:

Ah, fair enough.

I agree, it sucks that your house value is dropping due to foreclosure issues. Thats why mine dropped in the first place. My "brand-new" neighborhood became "The hood" in a matter of months after I moved there becasue of foreclosure issues. My home dropped in vlaue over $150k in less than a year. The gangs moved in, shot car windows out, shot up the neighborhood and broke into houses and flat cold ripped them off. Being a single woman, living there no longer became an option. My life, over my credit rating, became much more valuable.

The problem all along has been they only "reward" the one who default. Originally I called the banks and asked them to re-do my loan, so I could move out and maybe rent the place. they said they wouldnt work with me at all until I defaulted.

Now the program is designed to help those who have, for one reason or another, defaulted. Folks like you dont benefit, except maybe good peope will stay in the neighborhood because the banks are finally working to help them stay in their homes.

But I agree, it sucks for you. it sucked for me when they wouldnt work with me.

[petegz28]

Ah, fair enough.

I agree, it sucks that your house value is dropping due to foreclosure issues. Thats why mine dropped in the first place. My "brand-new" neighborhood became "The hood" in a matter of months after I moved there becasue of foreclosure issues. My home dropped in vlaue over $150k in less than a year. The gangs moved in, shot car windows out, shot up the neighborhood and broke into houses and flat cold ripped them off. Being a single woman, living there no longer became an option. My life, over my credit rating, became much more valuable.

The problem all along has been they only "reward" the one who default. Originally I called the banks and asked them to re-do my loan, so I could move out and maybe rent the place. they said they wouldnt work with me at all until I defaulted.

Now the program is designed to help those who have, for one reason or another, defaulted. Folks like you dont benefit, except maybe good peope will stay in the neighborhood because the banks are finally working to help them stay in their homes.

But I agree, it sucks for you. it sucked for me when they wouldnt work with me.

My brother in law in is your boat. My house has jsut dropped only cause of real estate in general going down. I agree it is in the bank's best interest to work with you rather than taking your home and trying to sell it.

The general reason given to peolple like me is foreclosures hurt my home value so I should suck it up. The problem is, as you have stated, these homes in decen neighborhoods decline and then investors come in and Section 8 them. Thus your less than savory neighbors.

I do sypmpathize with your situation and apologize if I came off as cold on it. People see an opportunity to buy a house and for many it is a dream come true. But we all have to own up somewhere.

I would be more open to the banks extending the loans or refinancing to a lower or fixed rate as opposed to lowering the principal amount people owe.

[Carlota69]

My brother in law in is your boat. My house has jsut dropped only cause of real estate in general going down. I agree it is in the bank's best interest to work with you rather than taking your home and trying to sell it.

The general reason given to peolple like me is foreclosures hurt my home value so I should suck it up. The problem is, as you have stated, these homes in decen neighborhoods decline and then investors come in and Section 8 them. Thus your less than savory neighbors.

I do sypmpathize with your situation and apologize if I came off as cold on it. People see an opportunity to buy a house and for many it is a dream come true. But we all have to own up somewhere.

I would be more open to the banks extending the loans or refinancing to a lower or fixed rate as opposed to lowering the principal amount people owe.

All good Pete. I defintely choose to own up to my mistake (buying the house in the first place and not being smart about the loan). And it blows that good homeowners, like you, who made good decisions are paying for the mistakes as well.

[petegz28]

All good Pete. I defintely choose to own up to my mistake (buying the house in the first place and not being smart about the loan). And it blows that good homeowners, like you, who made good decisions are paying for the mistakes as well.

Well, again, I don't mean to belittle your situation. You were only trying to do better for yourself. You are not the first person to say ?man I should not of done that". It just happened to occur at a rotten time. And really, to be brutally honest, and I am assuming you had an A.R.M., what happend to the interest rates and such never should of. It was all a gross manipulation by a few Credit Rating Agencies blessing paper with a AAA stamp then to turn around and start downgrading it all.

The move in interest rates that forced these ARMS to really hose people to me was not a natural movement of interest rates. But rather, like a said a manipulated and if you want to be cynical, calcualted move by certain individuals and companies. Henry Paulson being the pioneer of it all.

The CRA that everyone likes to blame for this problem is not the problem. The problem is the banks were allowed to pool and securitize loans. Once that happened it all went to hell. If the loans were never made into "securities" you probably would be just fine.

[Carlota69]

Well, again, I don't mean to belittle your situation. You were only trying to do better for yourself. You are not the first person to say ?man I should not of done that". It just happened to occur at a rotten time. And really, to be brutally honest, and I am assuming you had an A.R.M., what happend to the interest rates and such never should of. It was all a gross manipulation by a few Credit Rating Agencies blessing paper with a AAA stamp then to turn around and start downgrading it all.

The move in interest rates that forced these ARMS to really hose people to me was not a natural movement of interest rates. But rather, like a said a manipulated and if you want to be cynical, calcualted move by certain individuals and companies. Henry Paulson being the pioneer of it all.

The CRA that everyone likes to blame for this problem is not the problem. The problem is the banks were allowed to pool and securitize loans. Once that happened it all went to hell. If the loans were never made into "securities" you probably would be just fine.

Yeah, I had an ARM. Not totally understanding the loan and trusting my real estate agent, was by far the biggest mistake I have ever made. One I will have to pay for. Thats ok, though. I will pay for it and I will never make that mistake again. I will never be that stupid again, thats for sure.

[petegz28]

Yeah, I had an ARM. Not totally understanding the loan and trusting my real estate agent, was by far the biggest mistake I have ever made. One I will have to pay for. Thats ok, though. I will pay for it and I will never make that mistake again. I will never be that stupid again, thats for sure.

Just keep your chin up and plow along. :thumb: