Don’t Make Your House Payment!

crush-your-spiritI wasn’t going to post today, but I just can’t help it.  From today’s Kansas City Star

“In general, a borrower must be at least 60 days delinquent to qualify for help, although the Fed has leeway to make some exceptions. A 2008 law that set up the $700 billion bailout fund instructed the Fed to take such foreclosure relief action.

“The goal of the policy is to avoid preventable foreclosures on residential mortgage assets that are held, owned or controlled by a Federal Reserve Bank,” Fed Chairman Ben Bernanke wrote in a letter Tuesday to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.”

So, if you struggle to keep your commitments and barely keep your head and credit rating above water you are NOT eligible for some relief.  Once again it pays to be a victim.  I understand how letting every house go to foreclosure isn’t a good idea.  But why is it that only the delinquent banks and homeowners are being rewarded here?  Am I missing something?


Filed under Social Issues

6 responses to “Don’t Make Your House Payment!

  1. dumbwhore

    I hate that part of the system as well. I’ve fallen behind on payments a few times and basically in almost all cases they told me that I hadn’t fallen far enough behind to waste their time on.

    I’m just glad to be out of the mortgage game, but that’s as much a part of the problem with the economy as anything else. It’s based on people who can afford debt taking debt on. Instead I sock away 30% of my income into savings(for later investment into real estate) these days and live in a worse neighborhood than most people would find acceptable.

    It’s been like this for years though. Much like the bankruptcy lawyers who tell clients to go out and buy a new car so they can make their case for bankruptcy stronger.

  2. Eric

    We are becoming a society of victims, and it is becoming more popular for our politicians to cater to the victims, rather than providing incentive for those willing to succeed. Success is hard work, victimhood is easy. It is pretty scary.

    • I agree, the people who need a small help for a short time period are left with no programs. However, when people cry wolf then free handouts are plentiful.

      Our society needs to get back to saving money to purchase a house as my parents taught me.

      The second part is buy what you can afford not want you Want.

  3. With all the Forelcosures and the way the market has been performing, it is forecasted that the new york real estate market will depreciate by an average of 14%. New York is in the top 25 places of the worst market to be in. California, Nevada, Arizona and Florida lead in states and are expected to depreciate by an average of 22%. Poeople cant afford to make their home payments which is causing this horrible market we are in, and the only people to blame on this are the lenders and the government for allowing these loans that were once never available until the early 2000’s when the market was HOT!!!

  4. James

    Made contact with the Loss Mitigation Department at Suntrust and spoke to a Consoler
    and was told that the program set up by Fannie Mae and the Federal Government was not functioning. So the modification that I was offered can not be granted at this time. This offer was to extend my loan for 40 years at 2% Interest for the first 5 years going up 1% each year after until year 8 and would set at 5.375. A forbearance of 70k would balloon at the end of 40 years. This would bring our payments down $1,400.00 a month. The only offer they can give me is a 6 months forbearance that I would have to pay 1/2 on the mortgage thus causing me to accumulate late fees and interest. I was told if we could come up with more money so that they did not have to do such a large forbearance she could run the numbers again to see if we qualify with out the MPV test. I told her that I’m willing to take drastic measures to save the roof over my families head even if it mean I had to go out and find a loan shark to borrow the money from and have my leg broken if I can repay them or loose a kidney. It is unfortunate that I am left with no other choice in saving the roof over my families head.

  5. James,

    I don’t know the beginning of your story however it sounds to me as you bought too big of a mortgage payment in the beginning.

    My husband and I rented a house for almost 10 years prior to owning our own house. We both had the same goal, buy a house we were able to afford with a low mortgage payment.

    We did not want to worry about where our mortgage payment was coming from each month.

    We see young kids buy a house worth over 200,000 and we look at each other and shake our heads. Will I feel sorry for these people in foreclosure? Why?

    Everybody today wants instant gratification. What happened to the term starter house?

    James, if you lose your house to foreclosure so be it. Go buy another house! A house is truly just a bunch of sticks together. There are many houses for sale! Your kids will have a roof over there head in another house with a lower monthly payment. Lower your monthly payment so you can spend quality time with your kids vs. being stressed out wondering where the money is coming from to make the rent or mortgage payment.

    Your family will make another house your home.

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