Mortgage Bailout?????

[Col Forbin]

Watched on the news this moring that they are now going to start bailing out indivuduals who are defaulting on their mortgage. To qualify you must be 3 months behind on payments. They plan to cut those individuals interest rates in half, as well as to make the majority of their monthly payment donated to the principle balance. I thought the corporate bailouts were getting ridiculous, now individual bailouts. Jim Kramer explained how the individual bailouts help all of us by stopping the continuing decline in the housing market, and help restore home values, but I don't know.

My wife and I were considering re-financing - but the process is a pain in the behind, and we have to come up with a pretty large amount of money for closing and fees. I guess it would be alot easier, and cheaper on us if we just quit paying and let mortgage company refinance for us for free - probably get a better rate.

I am about as liberal as you can get on most issues, but also think there should still degree of personal accountability for your actions.

[mhall]

What a freaking joke, those are your Democrats pushing for this garbage to Col.

[Col Forbin]

What a freaking joke, those are your Democrats pushing for this garbage to Col.

Most of the backers of this bailout are the true financial conservatives. However, I am not going to point the finger back the other direction, I think both parties are equally involved in all of these bailout plans.

I understand the logic behind the plans, especially this one, but I also think at the same time it is rewarding irresponsibility. It really is a no win situation.

[Bobby Headrick]

Actually the mortage co's came up with this udea themselves.

[Tyme2fish]

My son got hosed on his divorce last year and I just loaned him 5k to get caught up on his bills. He was 3 months behind on his mortgage. Oops. Bad on us for trying to do the right thing.

[Cobra190]

Actually the mortage co's came up with this udea themselves.

Yes, from what I heard on the news last night, the mortgage companies want to turn alot of these mortgages into intrest only loans for a period of time then start adding the principle back into the payment. Which to me and my opinion, means that they will turn a 30 year loan into a 35 year loan, take the pressure off the barrower for 5 years and then in the end they get five years more on the interest payment.
I myself wonder what is going to happen to these folks that are in interest only mortgages and can't pay that now. If the mortgage companies drop their interest rate, they will get a lower house/interest payment to live in the same house.
And it doesn't appear that this is going to help any of us that pay our payments and are not in fault or behind.

[DJD]

Most of the backers of this bailout are the true financial conservatives. However, I am not going to point the finger back the other direction, I think both parties are equally involved in all of these bailout plans.

I understand the logic behind the plans, especially this one, but I also think at the same time it is rewarding irresponsibility. It really is a no win situation.

OK time to be SELFISH!! What about me??? I live within my means, I don't have any problems paying my bills, haven't purchased a new vehicle since 1995! I am never late on my bills, I pay my freakin' taxes, I contribute to the needy (at times). What about me?? Maybe a few points off my home loan? That would be HUGE for my financial future! I could have bought that 40k boat but I didn't, could have bought that 250K house but I didn't, could have bought that decked out tow vehicle but I didn't. Never went to College but still somehow I learned not to be an IDIOT with my money. What about me???

This is what pisses me off so bad about bailouts, I could say a dirty word right now!!

Col your right on with these programs rewarding irresponsibility. I'll tell you what (I know you don't agree) but that's my general opinion of the Dem party. Think about Welfare two years from now and we will say...Healthcare, Detroit, Mortgage and so on and so on.

[MrSplitshot]

The way I understood the proposal, it's a voluntary thing for mortgage companies at this point...and starts with loans owned by Fannie and Freddie. If you're 90 days late on your mortgage payment, and you owe at least 90% of what your home is worth, the mortgage company could extend your terms longer, reduce some interest, etc. The goal being to get a person's mortage payment to no more than 38% of their monthly income.

In my mind, first off, in many cases if the mortgage companies had done their job in giving out loans to qualified applicants instead of anybody with a pulse and a job, the payment might not be more than 38% of their monthly income in the first place. It's a combination of people living beyond their means and the banks allowing them to do it.

This reminds me of a few years back and auto financing. It used to be unheard of that you financed a car any longer than 48 months. As the price of cars grew, here came leasing, 60 month, 72 month, 84 month financing...because it's the only way people who HAD TO HAVE the big expensive vehicles could afford the payment. Same thing here if the mortgage company takes a 30 year fixed mortgage and waves their wand to make it a 40 year loan...the payment becomes lower and more affordable for the homeowner, hopefully preventing a foreclosure. While I understand that theory, I call BS that it has to be a "bailout" on this deal...the mortgage companies say that they can't afford to do it without help from the government/taxpayer. They're looking for a way to "purge" all of this bad debt from the system without crippling the economy, but I'm not sure if there's a good way to do it. At some point, somebody's got to pay the piper.

The way I took Kramer's explanation on the Today Show, is that the responsible homeowner who is making their mortgage payment is SCREWED either way. Federal assistance to the mortgage companies means more tax dollars out of his pocket. No federal assistance means no help for the dude who's not paying his mortgage, which means foreclosures, which means lower home market values...which affects the homeowner who is doing it right. It's a pay now or pay later thing. Pay a little more tax now, or take a big lick when you sell your home because your neighbor mucked up the neighborhood.

I think I'm ready to just sit at home and draw a check, because it's looking like that's the only way to win anymore.

[mhall]

I wanna be a Gubment baby, that's right sit on my ass all day drinkin 40's watching Jerry Springer. Now here's what I really think, take all the people that did stupid stuff with their money and bought things they couldn't afford and tell them SORRY ABOUT YOUR LUCK. I didn't put them there and I shouldn't have to pay for it, just like if I go belly up I don't want anybody to help me out, it's my **** PROBLEM. I also think all these greedy Ceo's jackasses aught to be FIRED.......TODAY...... and told to get out before they are thrown out. Let me be President for 6 months and anything I say goes and watch the fur fly. Don, if I haven't said it before I'll say it now I think somehow we are related. When I read most of your posts it's like listening to myself.

[DJD]

I wanna be a Gubment baby, that's right sit on my ass all day drinkin 40's watching Jerry Springer. Now here's what I really think, take all the people that did stupid stuff with their money and bought things they couldn't afford and tell them SORRY ABOUT YOUR LUCK. I didn't put them there and I shouldn't have to pay for it, just like if I go belly up I don't want anybody to help me out, it's my **** PROBLEM. I also think all these greedy Ceo's jackasses aught to be FIRED.......TODAY...... and told to get out before they are thrown out. Let me be President for 6 months and anything I say goes and watch the fur fly. Don, if I haven't said it before I'll say it now I think somehow we are related. When I read most of your posts it's like listening to myself.

Great minds think alike!

[Bobby Headrick]

You feel better now Mark??????????????????????????????

[zx150]

I think Dave Ramsey should be the next president.