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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. Ben Dover

    Econ 101...hah...should be called Socialism 101. The problem with this country is that there are far to many people who think they are entitled and that there should be no accountability for their actions....like buying a home, car, tv, etc. that is out of their means and then expect to get a "free pass" when they can't make payments. Our government says OK sure, and perpetuates this ludicrous mindset with these socialistic bailout plans. Meanwhile, the hardworking responsible persons of this country are left footing the bill. This is unjust and it continues to erode the foundation from which this country was built.

    February 18, 2009 at 12:14 pm |
  2. Phil

    I see a lot of "what is in it for me?" comments here.

    If ANYONE near you has a foreclosure on their property is lowers your property value. So in essance if we as a community help people stay in their homes it helps all of us!

    I am one of the people it might not help, I owe more on the house than it is worth and I would love to move but I cannot sell at these prices. But, if the market improves a little I might be able to sell.

    I have saved, paid my bills, paid my mortgage and yes, some people who were not responsible may benifit more than me. Realistically though, there are a lot of people who did all of the responsible things and are STILL losing their homes!

    So if you are not helped in this particular bil and still are living in your home – stop complaining! This is a time when we have to help out those that need it the most and all of us are going to have to chip in and take a littl pain to help out our country and our fellow citizens!

    February 18, 2009 at 12:14 pm |
  3. Bailing OUT

    This garbage bill is the last straw. I am 58 and I am quiting my high paying high tech job. I am not sending any more of my hard earned money to this idiot government. I am headed for the dole role just like the other 50% of the country. If all of us working folks stopped giving Washington our hard earned money, they would have none to spend on this kinda communism. Good bye work , Freebees here i come. Let me see, Unemployment for a least a year, food stamps, health care and maybe have the rest of you working dopes pay for my mortgage.

    February 18, 2009 at 12:14 pm |
  4. Concerned Citizen

    Why does the government continue to give the lenders/investors the option to participate in government sponsored programs? Lenders/investors should be required to participate. Especially, when they receive government funds and are originating Fannie Mae, Freddie Mac, FHA and VA loans.

    February 18, 2009 at 12:13 pm |
  5. James Bauer

    The problem lies in the financial world.No one is being held accountable for there actions.I think jail time should be on the minds of the general public for everyone of those responsible including Gov`t.

    February 18, 2009 at 12:13 pm |
  6. john

    HAVE BEEN WORKING WITH MOREQUITY INC (OWNED BY AIG)
    TO TRY TO GET HELP WITH ONLY ONE PAYMENT AND TO GET
    DUE DATE CHANGED. NEVER BEEN 30 DAYS LATE OVER
    TEN YEAR PERIOD. MOREQUITY TELEPHONED YESTERDAY,
    AND INFORMED ME THEY CAN'T HELP ME!

    February 18, 2009 at 12:13 pm |
  7. Brian Parker

    I have a first and second mortgage with US Bank. My first mortgage is a 3 yr arm at a rate of 7.70% that is due in Aug 2010, and my second is 9.99 fixed. I tried to do a modification on my loan with US BANK. US BANK turned me down. The reason they refused to help me, because I'm current with my loan, never late, and the rate doesnt change till Aug 2010. I was trying to lower my rate, and a lower payment, and manage my debt better. I cant get a refinance done because im 35k upside down. If banks like US Bank are not willing to help their customers. Then what are we supposed to do. I want to keep my house, its my first home. I was trying to prepare myself so I can afford to keep my home. No wonder why so many people have lost their homes.....

    February 18, 2009 at 12:13 pm |
  8. Banik

    This is unfair to the people like me, who spent savings, cancelled vacation plans, made more sacrifices to keep mortgages up to date. It does not matter how much you make, it matters how much you can see at the end of each paychecks

    If you do not see few hundred dollars and waith for the next pay check to pay your bills, you are no better than those who qualifies for this program.

    February 18, 2009 at 12:13 pm |
  9. Jeremy

    The 105% rule makes no sense. For example, I bought my house on the upswing in the DC/Northern Virginia area. Since purchasing my home I've seen the value increase 17% before plummeting 26% and now appraises for 13% less than the original purchase price. I still owe 96% of the purchase price, but yet 111% of the current price and therefore don't qualify for assistance. Unreal. This plan basically leaves out those areas hit hardest by the crash because if your home values have decreased more than other areas, you'll find yourself owing more than the 105% value. Thanks a lot Mr. President.

    February 18, 2009 at 12:13 pm |
  10. Mark Millage

    Thats right keep printing money we don't have. We were worried about the mortgages ,, what about the deficit that this wil be increasing? Our dollar value will continue to drop as we help the idiots in the banking industry and keep good relations with investments that our congressmen have personal interests in. Too bad our President is more interested in Popularity than making decisions that will save this country in the long run.

    February 18, 2009 at 12:12 pm |
  11. Rod

    Lets see if I have this right.

    1) I bought a house at an inflated price I normally couldn't afford but I got a loan I knew would cause problems after a few years.

    2) The bottom falls through and I can no longer make the payments or the value of the house has fallen below what I paid for it so

    3) The government now offers to help me refinance with other peoples money or should I say my grandchildrens future.

    Whats wrong with I screwed up, I was DUMB so I should have to pay for my own mistakes. NO ONE FORCED ANYONE TO SIGN THE LOAN PAPERS

    February 18, 2009 at 12:12 pm |
  12. Kevin

    I have not overextended myself. I saved for college for my kids. I did not take out cash when I refinanced to a lower interest rate. I lost my job last summer, cut expenses and worked 10 hours a day until I found permanent employment. I drive 8 year old cars with over 100,000 miles on them. My wife went back to college to make herself more competitive in the job market. Because I saved and worked hard, I get no financial aid for college. I will not be able to use the tax credit to by a new car and I can't take all of my losses in the markets caused by bad government and bad borrowers off on my taxes. This is the moral hazard- do the right thing and have the government pay others with your tax money for doing stupid things. Thanks a lot. What should I teach my kids?

    February 18, 2009 at 12:12 pm |
  13. paul

    Sorry folks, but this sucks. If you are financially sound and pay your debts on time, you and your children will be paying to bail out the rest of the people who never should have bought a house in the first place.

    It's all Barney Frank's fault for trying to increase home ownership among people who can't afford to own homes.

    February 18, 2009 at 12:12 pm |
  14. l justice

    I am behind six months on my mortgage with a 10.75% interest rate and my lender will not modify my loan by lowering the interest rate. My servicer is Countywide and the inverstor is Wells Fargo, my question is will this new homeowner bailout help me???

    February 18, 2009 at 12:12 pm |
  15. Bush Victim

    Where's the love for people who had to relocate in order to keep an income and no longer want to keep their devalued home that they couldn't sell? This plan leaves a lot of people out.

    February 18, 2009 at 12:11 pm |
  16. Franc

    This is a naive, first-time-homeowner question: how do I know if my loan is held or securitized by Fannie Mae or Freddie Mac?

    February 18, 2009 at 12:11 pm |
  17. Kathy from Trenton NJ

    We had to claim Bankrupsy in February 2009 because we were about to lose our home. I was diagnosed with Breast Cancer last year and my husband is disabled. We had great cost with my care. We fell behind with bills and mortage. We contacted the Wachovia Mortgage Co often but was never successful in having a resolution. In October we were able to pay the back payments but the Bank refused taking the payment without the $4000. payment to the Bank's Lawyer. Now we are paying an extra $250. to a trustee. Our living expenses are Real tight.
    ? Would we be able to Refinance witht his Bailout Program?

    February 18, 2009 at 12:11 pm |
  18. Pat

    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.

    WHAT ABOUT BORROWERS WHO WORK HARD AND HAVE BEEN PAYING THEIR MORTGAGES ON TIME WITHOUT MODIFICATION???
    SOMETHINGS NOT RIGHT WITH THIS!

    February 18, 2009 at 12:11 pm |
  19. Chris

    I wasn't stupid enough to buy a house I couldn't afford. If the government is bailing these people out, where is my free house? Shouldn't the government buy a house for me? That is exactly what they're doing for these idiots.

    February 18, 2009 at 12:11 pm |
  20. Steve

    Welcome to the Great American Real Estate Giveaway!

    Bought a house you can't afford? Here's money!

    Bought a house you can afford, but paid more than it's worth? Here's money!

    Want to buy a house right now? Here's money!

    Don't own a house and can't afford one? Thanks for the money!

    February 18, 2009 at 12:11 pm |
  21. J

    Ok. My house is in foreclosure. I got my eviction notice on 1/28/09. I really want to stay in my home. How can this stimulus package help me stay in my home? Does/Did the stimulus package address "homeowner evictions"?

    February 18, 2009 at 12:10 pm |
  22. mnosrevlah

    Paid $434K for my home in Northern California in November 2005 on 30 year fixed rate (5.875) loan and put $80K down. Home is now worth $240K at best. I owe $335K. There are are no incentives in this plan that make sense to me. Housing will not recover in my area for at least 5 years. I will be letting this one go back to the bank and recover at least half of what I put down during the foreclosure process and then save the difference I lost over the next 5 years. I will then purchase a home at a much lower price and be in much better shape than I am now. This new mortgage plan only may benefit a small few. This only helps the big investors and really offers very little for the little investor (me).

    February 18, 2009 at 12:10 pm |
  23. Jason

    This makes me sick! We had one of "those" loans, and the lenders tried to warn us, and we wouldn't take "no" for an answer. We were current on our mortgage until we had to declare bankruptcy, at which point we went ahead and let it go into foreclosure. Until we had our loan, we had good credit, but it went to pieces when we got a loan we couldn't afford. They tried to warn us, and we lost our house. We paid the piper for our bad choices, and these people should, too. Let people suffer for the bad choices they make. We have, and we sure have learned a lesson about mistakes we will never make again. Live and learn; stop bailing people out for their bad choices. Bleeding heart liberals.

    February 18, 2009 at 12:10 pm |
  24. David

    My house is worth 45% of what I paid. According to this article, I can refinance the entire amount, but not get a reduction in principle. On the other hand, if you read the release from the White House, they mention changing bankruptcy laws so that the judge can reduce the principle. You'd have to be an idiot to agree to a loan for a house worth less than half of the loan amount. The government is taking all the bad debt from the NY financial institutions that caused this mess, yet I'm on the hook??? No thanks. I would never, in my lifetime, have any equity. I guess bankruptcy is the only route.

    February 18, 2009 at 12:10 pm |
  25. norm W

    #8 says financial incentive of $5000 if you pay your mortgage on time for 5 years. What incintive is ther for peaple who dont use this program and pay there mortgage for 5 years?

    February 18, 2009 at 12:10 pm |
  26. mary hayes

    So.. people who bought what they could not afford will be rewarded with a $5,000 reduction of principle, if they make timely payments; and those of us who bought within our means and made timely payments will recieve no reward. Thanks Obama Team, for once again proving that doing things right is not valued by the present Administration, or Congress.

    February 18, 2009 at 12:09 pm |
  27. Jim

    Exactly true!! What about those of us who pay their mortgage on time every month but have given up life's pleasures to do so when times got tough, while others have gotten in over their heads and kept the lavish lifestyle? These people are taking my money to stay in a home they should have NEVER been qualified for. So much for being responsible!

    February 18, 2009 at 12:09 pm |
  28. Eliijah

    I lost my job in december of 2008 and was not able to make monthly norgage, i hace 6 kids and wife right now we live on my wifes income. I cant find any jobs aroud my area and feel like i let me family down. Im facing foreclosure and hope that i could benefit from this plan...
    God bless us all!

    February 18, 2009 at 12:09 pm |
  29. Lonnie

    Wow, I am going to sell my house that I can afford and go buy a bigger house that I can not afford so the government (taxpayers) can bail me out. I think I will take out equity loans on that new house so I can buy a car, big screen TV, electronics, etc.

    February 18, 2009 at 12:09 pm |
  30. Troubled

    How will this affect those of us pursuing a short sale? An interested buyer has offered the current value of the house 5 months ago. The banks have been dragging their feet during all of that time. Why wouldn't they want to close on this when they can recup at least some of the cost? I don't understand. Now, this bill is passed and we are still strapped down with this house that should have been sold 2 years ago. Why are the banks telling people that they want to help, but then refuse to do so when push comes to shove?

    February 18, 2009 at 12:08 pm |
  31. oscar echeverri

    my comment will be in spanish...is easier for me....... yo tube una casa, la refinancie y compre 2 casas mas, pero las perdi, solo pude salvar una( la salve llegando a un acuerdo con con la compania de prestamo.0MI PREGUNTA ES.... YO ESTOY MUERTO FINANCIERAMENTE....POR MI CREDITO MALO.......Para este programa, se necesita tener credito bueno..? t

    February 18, 2009 at 12:08 pm |
  32. Markus R.

    I have been renting a home for my family for the last 6 years because home prices in Orange County California are basically 7 o 10 times local annual gross incomes due to the irrational exhuberance in the housing market and rampant liar loan enablement during this period.

    I drive an 8 year old car and have been saving money as best I can in my 401k. I have no debt.

    Is there something in the Homeowner Affordability and Stability Plan for me and my family too?

    My savings were just halved last year due to the housing crisis.

    I'm starting to believe that I too should have bought a $650,000 house, pulled a cashout refi, bought a Mustang for my wife, bought granite countertops for the kitchen, and installed an underground pool all on $70,000 annual gross income.

    Wait. No. I have an idea. Let's just punish all of the savers, those that chose to live within their financial means, and instead reward the financially inept and irresponsible citizens who can't read a mortgage contract, nor dial up a lawyer at $300/hr to read it to them and explain it before they signed it. Let's do everything we can to prop up the value of houses in America which, by now I would think, we all know were and are based on undocumented loans, i.e. lies.

    We are lost.

    By the way, the right word is not "homeowner". You don't own anything until it's paid for. The right word is "homedebtor".

    February 18, 2009 at 12:08 pm |
  33. Catte

    Ginny, something good will come your way. Your bank like others are grappling to minimize losses and retain as much money as they can. It's understandable; Nevertheless, since the outward acknowledgment of the "crisis" the spin has been that buyers are to blame for owning property they knew they couldn't or shouldn't afford; however, reliance upon professionals in traditionally complex transactions -that is, the brokers and the bankers who have the power to approve and disapprove loans is justified by buyers who pay for their services -and who have never had the power to approve themselves. "No." "Denied." "You can't afford it..." is the simplist calculation that would have prevented much of what has transpired. Now, though, is not the time to say "No and Denied." It's time the banks, share honestly the responsibility for this mess and be fair, and not vindictive in rectifying this miserable situation. Hang in there. You will make it.

    February 18, 2009 at 12:08 pm |
  34. Working Hard

    We have done everything right. We got a traditional Mortgage and worked hard at our jobs, and pay our debts on time.

    I was promoted and transfered out of state and we are now paying a mortgage in Florida and rent in Kansas. I am working 2 jobs to keep food on the table, and make sure our payments are on time. My mortgage is through Chase and they wont refinance or alter the terms because we are trying to sell the house. The company they sent us to to help with our budget actualy suggested we should default on the mortgage to qualify for help, which we will not do because its just plain wrong.

    How am I supposed to look my children in the eye and tell tham that honest, hard working people will be successful in this society?

    February 18, 2009 at 12:07 pm |
  35. tmare

    This is useless for those people who are underwater in California. We are not talking underwater by 5% out here, more like 50%. These people don't have a shot under this program of ever getting a fixed rate loan. Prices have dropped 35% and they think that this will help? No way.

    February 18, 2009 at 12:07 pm |
  36. BO stinks

    So if a mortgage gets crammed donw, is there anything in this bill that would require they pay back the cram down when the market recovers and they sell?

    February 18, 2009 at 12:06 pm |
  37. Michelle

    My husband lost his job in August of last year and although I make good money I do not make enough to cover the house payment, car payment (we only have one), utilities and food for my family. I have to make the decision every paycheck on what we can pay and unfortunately our mortgage is behind. So explain to me how that is paying for the bad choices of others, Good Borrower and Tax Payer??? Hopefully you never loose a spouse or loose your job then you might have to eat your own words. Not everybody that owns a house and is behind is because of their own fault. Remember that when you lay your head on your "almighty" pillow every night!!

    February 18, 2009 at 12:06 pm |
  38. Responsible Individual

    So what concessions/assistance is available for the responsible individuals who either did not buy a house out of their means or did not buy a house at all?

    My taxes are paying for this and I find by bailing these people out, we are not holding them accountable for their actions and condoning irresponsible money management. I should not be penalized for paying my bills and getting myself in over my head.

    February 18, 2009 at 12:06 pm |
  39. rhonda

    We go thru the GMAC and I have to warn you that they are very very hard to get hold of. They used to have chat on line which was a great deal for us now they do not plus if you call them there are too many button to push for and than you have to wait for more than 45 minutes. this is not a good one. If you go to your local bank than use that one. We wished we have loacal bank will take us because of the communication would be eaiser than looking for in the mail. We are in processing of loan modification.

    February 18, 2009 at 12:05 pm |
  40. Lisa

    I am sick about this new measure. I guess saving money and waiting to buy a home doesn't pay off in America 🙁

    February 18, 2009 at 12:05 pm |
  41. RICO

    the plan has some flaws to it and i think is missing some additional assistance for people who kept up with their payments, but i think its a start. This started from the financial institudes that offered bad advices to home buyers and used balloon payments and double mortgage as a tool to get people into more that they could afford. I know some of it is people bad judgement too, but unfortunetly their judgement is affecting all of us now.

    February 18, 2009 at 12:05 pm |
  42. Maria

    How will the Homeowner Affordability and Stability Plan from the U.S. Department of Housing and Urban Development, help Senior citizens that may be upside down in their mortage stay in their homes?

    February 18, 2009 at 12:05 pm |
  43. bob

    Seems like those who make stupid decisions, homeowners & corporations, get free money while those who have saved, have no mortgage debt, and do not require any money, get none. Seems like socialism.

    February 18, 2009 at 12:05 pm |
  44. Susan

    This will not help those whose home value has dropped like a rock, like here in SW Florida. They are giving the example of if you owe 210 and your house is worth 200 now you can get refinance help. Here in SW Florida home values have dropped more than 50% in many cases. Many people owe 50 to 100 thousand or more than their home is currently worth. We owe 40 thousand more than the house is valued and cant refinance because of that fact, even though we put down 40 thousand when we bought it 3 years ago. We dont fit into any of these plans even though I am now unemployed and husband has had hours cut. We are current on our loan by scraping by. This plan leaves many of us in hard hit areas just dangling until I suppose we start to default, then we will "Fit" into a program, very dissapointing indeed.

    February 18, 2009 at 12:05 pm |
  45. Mike

    I'm current on my mortgage but I'm "underwater". My conventional mortgage is not owned by Freddie or Fannie. Does that mean that I will receive no relief from this program??

    February 18, 2009 at 12:04 pm |
  46. Tricia

    One glaring oversight in this proposal is the lack of incentive for banks to work with renters of foreclosed properties. As it stands now the banks will not work with renters, instead opting to spend over $75,000 per property to evict tenents and sell a property at auction.
    Allowing those who have made payments in good faith to take up a mortgage would go a long way in stabalizing the housing market, maintaining community continuity and increasing the overall number of homeowners.

    February 18, 2009 at 12:04 pm |
  47. What about us?

    what about people like us, who dont qualify as a first time home buyer because we had to sell our home at a lower market price due to recession nor we qualify as who has a home on the market and has a chance to refinance? Why should our tax dollars be used to bail out people who just bought some fancy homes even when they knew that they could not afford them in the first place

    February 18, 2009 at 12:03 pm |
  48. Ydog

    So people buy homes they can't afford and get rewarded. Where is my reward for being a responsible citizen? Oh wait...there is the $13...

    February 18, 2009 at 12:03 pm |
  49. SGJ

    I sincerely hope you find a solution for your problems.

    It is sad that a company as big as Chase wont do anything for someone like you yet have no problem taking Billions from you and thousands like you through the federal government.

    Have you contacted your senator or congressman?

    Good Luck.

    February 18, 2009 at 12:03 pm |
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