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February 18th, 2009
10:16 AM ET

Q&A on the foreclosure plan, and what it means for you

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Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan from the U.S. Department of Housing and Urban Development.

Borrowers Who Are Current on Their Mortgage Are Asking:

1. What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

2. I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

3. How do I know if I am eligible?

Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

4. I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.

5. Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

6. What are the interest rate and other terms of this refinance offer?

The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

7. Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

8. How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?

To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

9. When can I apply?

Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

10. What should I do in the meantime?

You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:

· information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources

· your most recent income tax return

· information about any second mortgage on the house

· payments on each of your credit cards if you are carrying balances from month to month, and

· payments on other loans such as student loans and car loans.

Borrowers Who Are at Risk of Foreclosure Are Asking:

1. What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

2. Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

3. How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

4. I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

5. I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

6. I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification.

7. I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender's discretion modifications may include upfront reductions of loan principal.

8. I heard the government was providing a financial incentive to borrowers. Is that true?

Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

9. How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

10. Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

11. I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?

Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

12. How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

13. What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes

· information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources

· your most recent income tax return

· information about any second mortgage on the house

· payments on each of your credit cards if you are carrying balances from month to month, and

· payments on other loans such as student loans and car loans.

14. My loan is scheduled for foreclosure soon. What should I do?

Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort.


Filed under: Bailout Turmoil • Housing Market • Raw Politics
soundoff (483 Responses)
  1. Chris

    Chase's actions do not surprise me. They are rob-dogs and deserve to go down the toilet.

    February 18, 2009 at 12:03 pm |
  2. KikiJones

    Good Borrower,

    You'll never know when you may be in their shoes, and need the same kind of help.

    February 18, 2009 at 12:02 pm |
  3. Army No Va

    Well, this won't help as much as they'd think.

    1. People will still walk if they owe too much even if they can make the payment. We saw this in Texas in droves in the late 80s, early 90s. And that was with falling interest rates and 3% unemployment!
    2. Jumbo loans aren't covered. Means homes priced $500K or more will fall in value and squash down values of $400K and less homes anyway.
    If a $550K home falls to $450K to get to a conforming loan with 10% down, then the $450K home falls to $375 and the $375 falls to $320K and so forth.

    February 18, 2009 at 12:02 pm |
  4. Troubled Homeowner

    My wife and I moved away from our owned home for a job in a different state last year. We lost her income this year in a downsizing. We are struggling to stay current on our home mortgage while also paying rent in a new state. Our home has decreased in value by nearly 1/3 of the orignal loan. We've never been late on a payment and both have high credit ratings. It appears that this new bill doesn't help us: we no longer live in our purchased home and it appears we cannot modify the amount of the loan down. It appears our choices are to move back into our home and lose our other (only) source of income to take advantage of the bill, or stay put and foreclose/short sell.

    We can't be alone. What help is out there for us?

    February 18, 2009 at 12:02 pm |
  5. Ugh! Chase

    We called Chase yesterday because we are falling behind on our payments due to a reduction in income due to a commission only job. They told us there was nothing they could do right now, to call them back when we start to make more money and then they can work something out!?!?@ WTH!! When we start to make more money, we won't need help!

    February 18, 2009 at 12:02 pm |
  6. STAUNCH CONSERVATIVE

    So once again, those living far beyond their means are going to be rewarded with my tax dollars. Mr. Obama, when your daughters do something stupid or harmful to themselves, do you reward them or correct them? Please don't pass by this "teaching moment". Let the fools who tried to live in McMansions that they couldn't afford sink or swim on their own. Otherwise, the only thing they learn is that they can live beyond their means and have the taxpayer foot the bill. But then again, that HAS always been the mantra of the democrats...

    February 18, 2009 at 12:01 pm |
  7. K

    Does the incentives to homeowners apply to those who do not obtain a modification but have been making their payments ontime?

    February 18, 2009 at 12:01 pm |
  8. M.

    What do people get who have paid their mortgages without going into default? Aren't we supposed to reward those who follow the rules? It seems like we're rewarding the ones that don't, or were taken in my scams.

    Yes, the system needs changing, but those who followed the rules should not suffer from those who didn't. Where is these people's bailout?

    And another note, will the college students of today be able to even think about affording a home in less than 5 years? They don't get any support for college, just their parents who may not even be footing the bill for college! But these students are supposed to pay off thousands of dollars in student loans and buy a house with no aid? Yet another catch-22.

    February 18, 2009 at 12:01 pm |
  9. Joe C

    Just so I understand – let's say the interest rate we have is reasonable, it's at 6.1 fixed. Lowering a point will not help tremendously but the problem is the mortgage balance. Because of the declining market, we have very little (if any) equity in our home.
    I believe the bank should "write down" the mortgage balance down to 80% market value for those who qualify. That's how the government can help people such as myself.

    February 18, 2009 at 12:01 pm |
  10. jay

    Which bad choices the ones that approved loans or the ones which took them

    February 18, 2009 at 12:01 pm |
  11. Greg

    I am in good standing right now on my loan. I was wondering if I qualify for the refiance program will it affect my credit rating? Will it show up on the report that I signed up for the government program or will it just show up that I had my mortgage refianced?

    February 18, 2009 at 11:59 am |
  12. LG3

    Read the pdf from whitehouse.gov. How do they calculate the new refinance rate?

    February 18, 2009 at 11:59 am |
  13. Dr. Gilbert Martinez

    Hello:

    As a Conservative voter I am appalled at how the former administration managed to prove every claim made by Liberals. The Bush administration and their band of inept and unqualified band of fools proved time and time again that they only cared about a certain segment of the population, the very wealthy. In eight horrible years they have managed to undue just about everything that President Ronald Reagan accomplished. They have no one else to blame but themselves.

    Dr. Gilbert Martinez
    Miami, Florida

    February 18, 2009 at 11:59 am |
  14. clr33

    ok – great. but I don't see this fixing my problem, or one of the number one problems facing many of my friends that are facing foreclosures – which is – WE HAD TO MOVE ALREADY (due to safety reasons to my child) BUT WE CAN'T SELL THE OTHER HOUSE AND ARE NOW STUCK WITH TWO HOMES. I have been paying on both mortgages, sucking up my entire savings and retirement account to keep from foreclosing as the combination of the two is more than I make in a month. Soon – the cushion from my savings is going to be gone, and I am going to have to foreclose on one of these homes anyway if they don't figure this out or get home sales going again.

    So I am still penalized for paying my debts – I should have just tossed this other home on the back of the tax payers 2 years ago – as that is how long it has now been on the market. I did not have an option to move – it was forced – and because my local Govt rubber stamped every building permit request given so that there are 3 – 5 times more homes that the number of people that move into this State in a year – the glut on the market was already killing me.

    I am not the only one. There are many in this boat – that don't fit this new bill's restrictions. At least 5 in my small neighborhood where this home is. We have been trying to hold on to see what this bill would bring, and now see it brings nothing. So is the recommendation now that we just toss these homes onto the back of the tax payers through the foreclosure route rather than lose the last bit of savings in our banks that we are eating through? I don't really see how our credit rating is going to be hurt that much more – our debt to equity right now is horrendous, with no end in sight.

    February 18, 2009 at 11:58 am |
  15. Eugene

    Well, that pretty much leaves me out of the picture, all because I've been responsible, did not take 500K loan on 40K/year salary and paid on time. Now, I just called my bank to refinance (from 7% to 5%) they said it would not make sense because my PMI would shoot up and cancel out any savings from the loan. Great. Once more I'm getting screwed by all of the irresponsible jerks who will be living fine and dandy with the help of my taxes.

    February 18, 2009 at 11:58 am |
  16. Leroy

    Home owners who bought homes beyond their financial capabilities should not benefit from tax payers help. These people were speculating and tax payers should not be responsible for that speculation.

    February 18, 2009 at 11:58 am |
  17. Hardworking taxpayer

    If you cannot afford the house you are in, then it is time to downsize.
    Why should those of us who have been responsible and worked hard to keep up with our house payments, and who have not bought a home beyond our means, have to pay for the irresponsible choices of others?

    February 18, 2009 at 11:58 am |
  18. Christopher Turner

    I expect there are many young professionals, like myself, for whom foreclosure is not an issue because we made the responsible choice not to "get into" the housing market. We knew we couldn't afford it and were not willing to take the risk that so many are now suffering from.
    Will the economic stimulus plan include any help for first time home buyers like myself?

    February 18, 2009 at 11:57 am |
  19. Becky McClure

    What about those of us who do not own a home but are seeing our rents go up 10-20% and credit card interest rates rise... We are also having trouble making the payments??? Where is our bail out ??.. And call it what is ... A bail out... Buying a home with no down.. What were these people thinking... !! We do not live in Disney Land...

    February 18, 2009 at 11:56 am |
  20. David F.

    This stinks. For those of us who did our homework, bought a house, paying our mortgage on-time, there is no relief here. For those who did not do their homework and cannot pay the payments they contracted to pay, they are being rewarded.

    The new order seems to be, work hard, pay your taxes and your bills, and you get nothing - for others, these people will pay for you for a lifestyle that the taxpayers can't afford because after taxes they have nothing to spend.

    February 18, 2009 at 11:55 am |
  21. Wiliam

    I went from a job making $100,000 year to unemployment of $450 per week. I have done everything to make my payments and keep my home – but without a job even getting to 31% is impossible.

    See more below.

    My “Recovery” Situation

    I am trying to figure out where I fit into all the “help” from the Recovery Bill signed today (2-17-09). As far as I can tell I fall through EVERY crack in the bill for help now – when I need it!

    I was laid off before September 1, 2008 – so I lose out on that part of the Recovery Act.

    I am out of Unemployment Benefits in February 2009 – so the raise doesn’t help me. Will I get an extension?

    My COBRA ended in January 2009 – I paid the full amount for the whole 18 months – so that part of the bill doesn’t help me.

    I was just today informed I was turned down for private health insurance (no word yet on details) – a surprise to a lot of folks who thought I was healthy including me. I am almost 57 & not in perfect health but sure better than a lot of my peers at my age. Do I get help if I get sick? Do I get Health Insurance?

    I am not working so the tax rate reduction doesn’t help me.

    I still “own” my home so I don’t qualify for food stamps (do I?) or other public aide? How do I find out?

    My mortgage is right at the break even point to the value of my home (over $200,000 loss of value), so the lenders will not even talk to me – they will take it instead I was told. They don’t care about my loss of all my retirement and savings.

    I can’t get a loan modification unless I find work & can pay the mortgage as-is. I look for work every day including weekends, it is my job one!

    It is a sub-prime so will reset soon and even if I was working, I couldn’t pay it.

    All my retirement & saving WAS in my home’s value. Now gone!

    While working I paid down the principle on my interest only sub-prime loan over $200,000 in less than 5 years (how’s that for commitment to staying in the home) leading to being in balance so the lender wants the house vs. working with me if I was upside down. I knew I had to Refi before the reset & was getting there – till I lost my job in a RIF.

    I was laid off in April 2008 & as of February 2009, I am still current on all my loans & bills – so I did have saving & have cut back – but I can only go so far – to hear folks on TV telling me to save & cut back & pay my bills makes me mad – I did all that & now when I have reached my ropes end – I get no help because I had done all the right things.

    Since I was laid off I have lost over $63,000 in net (would have been) spendable income. I would say I planned ahead & spend wisely… but my limits are reached.

    Now I can’t find a job even at $8.00 an hour doing telemarketing because I don’t have 2 years telemarketing experience. I am a software quality assurance analyst that was making $100,000 year & have a Master’s degree & CAN’T find a job. I can’t do all these great manual “shovel ready” jobs! Recently I was turned down for a job when I had (only) 19 of the 20 requirements listed & again when I met all of the listed requirements but later was told there was another one not listed that I didn’t meet – how do I get training in that one area (tool) so I meet ALL the requirements?

    It’s great these working first time home buyers get help to buy all the foreclosed/short sale homes, but has anyone actually looked at the fact that the true overall/long term costs of the foreclosure/short sale FAR outweigh the “benefits” of making the housing more affordable for someone else.

    What would happen if ALL foreclosures were stopped on ALL primary residents where the Homeowner is unemployed through no fault of their own OR have shown a determination to stay in the home long term & keep the property values up and continue to make good on their commitments as the economy improves & they can again. Wow – with low interest rates and low home costs & those who still have jobs & good credit – new home sales might start again – wow home building, the number force in the economy might improve! Think that might help the economy recover?

    Speaking of credit, does it help when you go late on one bill (because you got laid off) so ALL your credit cards go to the default levels & the credit card company stops any more charges? They force you into even more default when they were fully paid and never took a loss BUT still got money from Washington.

    More on credit, so you do everything you can and still lose your home – your credit is ruined & Freddie/Frannie will not loan you money again for a house for years, even if you do get a job again … how does that help the long term recovery?

    I had to almost pay for my Master’s on my own using loans (little employer help). Now I still owe over $20,000 in school loans… the Recovery Bill is giving students money to go to school, how about giving me some for having gone to school (and paid the taxes on what was my 6 figure income) and forgive some/all of my remaining school loan, so I have that extra money each month to spend in the open economy? If the experts think an extra $13.00 per paycheck will help – then I would have an extra $154 each month I could help with today.

    February 18, 2009 at 11:54 am |
  22. R

    I don't have any mortgage on my house. Do I get rewarded monetarily for that?

    February 18, 2009 at 11:54 am |
  23. John

    You can only refinance if your mortgage is through Fannie or Freddie???

    February 18, 2009 at 11:53 am |
  24. Kim

    Sounds like a great plan but not sure if I qualify. My credit is shot with using credit to help meet obligations and keeping my mortgage current. Also, I asked my lender if my mortgage was backed by Fannie Mae or Freddie Mac and I was told that that is for internal information only. Is that true?

    February 18, 2009 at 11:53 am |
  25. Ryan Porter

    I'm in a unique situation. My ex-wife had the home that I used to live in foreclosed on last summer. I hadn't lived there for 3 years, and she would never do what was required and get my name removed from the mortgage. Now I have a foreclosed on home on my credit and I can't get a loan to get a new house for me and the 2 kids that I now have custody of.

    I have a feeling that it's people like me, that had a home foreclosed on through no fault of our own, who are going to still be up the creek without a paddle.

    February 18, 2009 at 11:53 am |
  26. jeff hoffman

    will those of us who picked a smaller house with a fixed interest rate they knew they could afford and therefore don't need to modify our loan, but have made payments on time, even when times were tough be eligible for the $5000.00 at the end of five years if we continue making our payments as listed in number 8?

    February 18, 2009 at 11:53 am |
  27. Andy

    Since I'm not behind on my payments and my mortgage isn't from fannie or freddy there's nothing to help me out in this plan. Maybe I should stop paying my mortgage?

    February 18, 2009 at 11:52 am |
  28. Kathy from Trenton NJ

    We had to claim Bankrupsy on 2/09 because of back payments owed to Wachovia mortgage co. for a mortgage. Wachovia would not work with us. We tried for 6 months to get help. In October we HAD the balance owed but the bank would not take it without an extra $4,000. payment to THEIR lawyer. We felt we had to file bankrupsy to save our home. Now we are paying $250 more a month to a trustee. Money is real tight.
    ? Are we able to refinance with this bailout program??

    February 18, 2009 at 11:52 am |
  29. Scott

    This is garbage. I work 2 jobs to support my family and to make sure my credit remains spotless. I will still have to work 2 jobs because it is the delinquents and irresponsible home owners who will get help...with the taxes collected on the 2 jobs that I work. Never mind the $45,000 I've lost in equity thanks to these meatheads. Thanks for nothing.

    February 18, 2009 at 11:52 am |
  30. Mary Guillory Davis

    MY loan is with Countrywide will be able to lower my payment with this plan.

    February 18, 2009 at 11:51 am |
  31. Linda Ferguson

    we fall into this range on our home. we are almost at three months default, because me and my husband lost our jobs with in weeks of each. he is now working and i am drawing unemployment. can we skip this months payment only because we jeporidize feeding the kids and paying the utilities to come up with a $1000.00 house payment.? we seriously need to get current on all of our utilities and groceries, will this cause our loan to go into forclosure if we skip this months payment until we can get a new modification?

    February 18, 2009 at 11:51 am |
  32. Eric

    Query whether a principal reduction will be treated as income to the borrower and therefore taxable. It's a form of debt forgiveness which is typically treated as income to the borrower.

    February 18, 2009 at 11:51 am |
  33. nanci.natale@ge.com

    Good information on the new foreclosure package.

    February 18, 2009 at 11:51 am |
  34. We need a new tea party

    What about the people who bought responsibly, stay current on their mortage, and don't want to pay for other people's negligence? Do we still have to pay into this system or are we exempt from contributing?

    February 18, 2009 at 11:51 am |
  35. tom

    Financial stresses are all relative. My waterfront home, my only residence, appraised for $5 million dollars in March of 2007. It is now valued less than $3 million which is what I owe.

    Now that my work has dried up I am getting close to being forced to try and sell my only home for less than I owe. And with no buyers in the market I fear that I could be soon facing foreclosure

    Will there be assistance for people in my bracket?

    February 18, 2009 at 11:51 am |
  36. EAH

    I'm on the fringe of this... If I already have a plan worked out with my lender for a refi (80/10) loan due to decreased home value at a decent rate, haven't missed any payments and am due to close at end of Feb – but am being hit with approx. $4000 in fees forced into a 2nd – is this an option for me?

    February 18, 2009 at 11:50 am |
  37. J.O.

    What if you bought a house within your means at an affordable rate and have made all your payments, and your house has the same value? Answer: you are paying for this plan.

    February 18, 2009 at 11:50 am |
  38. George Martinez

    About time the government started to care about the tax payers, who have been asked to bailout the very banks that are now trying to kick them out on the streets.

    February 18, 2009 at 11:49 am |
  39. Sigh

    So let me get this straight. People who couldn't afford the houses that they bought are getting help to keep houses they couldn't afford in the first place? That makes sense!

    Home prices are over valued. There is no immediate solution then to let people have their homes foreclosed. It is sad that people need to lose their homes, but think of the potential buyers who are responsible and have been waiting to buy their first homes. The dramatic increase in home prices caused A LOT of people to refrain from buying a home.

    Home prices had risen almost 200% in the last 10 years...how does that make any sense from the normal growth that it used to have.

    February 18, 2009 at 11:48 am |
  40. Kevin B

    I am responsible and current on my mortgage. I didn't buy a house I couldn't afford. I planned for the future by not buying big screen TV's and new cars. I have a savings account to cover me in the case of a lost income. What will Obama give me in this bailout?

    February 18, 2009 at 11:48 am |
  41. Kim

    This is all great for homeowners who are in over their heads. However, what about us, the people who live realistically, who can still afford our homes if one person loses their jobs? I see no advantage of this bailout for the average Joe, except to pay higher taxes to compensate this bailout. What incentive are we getting for being realistic?

    February 18, 2009 at 11:48 am |
  42. EAH

    How will taking advantage of this effect credit scores?

    February 18, 2009 at 11:47 am |
  43. Teresa

    So, if I'm current on my mortgage, but my home's value has gone down because of the actions of others in my neighborhood, and I didn't take out a loan with FannieMae or FreddieMac, I'm still up the creek without a paddle?! Nice - can I tell the tax collectors to pound sand when they come to me asking me for more money to help everyone else?! This is RIDICULOUS!

    February 18, 2009 at 11:47 am |
  44. What change

    So, I pay my bills, work hard, made the difficult choices in life, and do what I am supposed to do, and now my tax dollars are going to help people pay their mortgages when they most likely shouldn't have bought the house they are living in right now. Why do I have to suffer for others stupidity! Where is my "bail out".

    February 18, 2009 at 11:45 am |
  45. barbara

    What does this do for the people who have kept current on their mortgage but used their credit cards to do so and are now swamped in credit card debt?

    February 18, 2009 at 11:44 am |
  46. D. Newsome

    How does Obama's plan benefit , if at all, those of us interested in purchasing a home for the first time?

    February 18, 2009 at 11:43 am |
  47. Angel Smith

    Is there anything out there for someone who lost their home due to foreclosure?

    February 18, 2009 at 11:43 am |
  48. Good Borrower & Tax Payer

    I am so sick of paying for bad choices of others....

    February 18, 2009 at 11:41 am |
  49. Ginny Grieco

    I have tried to get in touch with my mortgage company for a modification. I have my mortgage with Chase. I lost my Husband in Jan of this year. I am disabled and on a fixed income everything went with my husband. Chase gave me the run around, until I wrote a letter to the CEO of Chase. They finally got in touch with me and said they will send me papers. So far I received nothing. I have never been late with my mortgage. All I am looking for is to lower my payment, to be able to stay in my home. My husband died of Cancer he was sick for a year and a half we exhausted all our savings on his illness and also on our two children who were in college one is still in college freshman and taking loans. If a person is willing to continue to pay why will these banks not help these people. Chase has not been very nice at this point. Yet they want help.

    February 18, 2009 at 11:13 am |
  50. lbumgarner

    Have they started a new Econ 101 Version 2.0?

    I apparently have the old version in my head.

    Go to http://www.OutOfBusiness.US Help name the new nationalized banks.

    Democratic National Bank
    Republican National Bank
    or PrintAllWeNeed National Bank

    February 18, 2009 at 10:53 am |
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