Do you qualify for a mortgage bailout?

Posted by: Chris Palmeri on February 18, 2009

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President Obama and Tresury Secretary Geithner are spending $75 billion to help homeowners stay in their homes. Is there something in there for you?

The quickest answer can be found by looking at how much you earn, not how much you owe. If your total monthly home payments (interest, principal and taxes) are greater than 31% of your monthly, pre-tax income you may qualify. Even if your home is worth less today than what you owe, you may be able to refinance.

Here’s an example from the Treasury Dept. Let’s say you paid $230,000 for a home in 2006. It’s now worth $189,000. If you can prove to your lender that your payments are greater than 31% of your income and you are at risk of default, you may be able to get your interest payment reduced. A subprime loan that cost you 7.5% today or $1,500 a month, could get lowered to 4.4% or $1,100 a month, with the lender and the government both picking up some of the cost of the payment reduction.

What if your payments aren’t higher than 31% of your income? The Administration has also proposed a way to help homeowners who aren’t at risk of default refinance, even if they owe more than what their house is worth. Normally it’s difficult to refinance if you owe more than 80% of what your home is worth. But under new rules you may be able to refinance up to 105% of the home’s value. Not all mortgages will be eligible. They have to be owned or insured by Fannie Mae, Freddie Mac or one of the other government-backed programs. High-value, “jumbo” loans may not meet the test.

The new plan fixes some of the problems in the structure of the mortgage market today. There is a $1,000 incentive payment for mortgage servicers to renegotiate loans. Previously they didn’t have much incentive.

The new loans can apply to homeowners who are current in their payments. You do not have to have missed payments to get the bank’s attention. As long as the borrower stays current on their new loan they can also get an incentive of $1,000 per year for five years, applied to pay down their mortgage principal.

The new loan subsidies do not apply to second homes or investor-owned properties. The complete eligibility guidelines will be out on March 4, which is when mortgage lenders can begin accepting applications. There’s more discussion of the new plan at the White House’s blog.

Reader Comments

Carl Green

February 18, 2009 09:01 PM

facing fourclosue how to qualify

James Raider

February 18, 2009 09:19 PM

Are you responsible for your neighbor’s bad decisions?

http://pacificgatepost.blogspot.com/2009/02/obama-mitigating-mortgage-foreclosures.html

Obama and Congress appear to think so. Is there any common sense in this program?

jenny

February 19, 2009 06:16 AM

Seems like those being bailed out are have either government or subsidized loans. I am the "working class" poor make less than 40 and am current on my house, I have learned to go without, but why should I? no one else is. I want the fab vacations and to be able to blow my money, where is my help? Does not appear to be any help for those who work and save, so I have to pay for everyone else? Thanks for nothing.

Pamela Plouffe

February 19, 2009 07:50 AM

If it was Oct 6, 2008 I would qualify, but today I have no home. I am happy for homeowners that won't lose their home now. All I got was my phantom 1099 from Chase that shows 182K in income for 2008 since they own my home now.

Michelle Mangen

February 19, 2009 08:44 AM

Thanks for sharing this article. Informative & I look forward to updates.

Michelle Mangen
Your Virtual Assistant
Neenah, WI
http://www.TheVirtualAsst.com

c houle

February 19, 2009 10:32 AM

I am a single person who has a mortgage of approximately $1,443.00 per month. My annual net income is approximately 52,000.00 per year. I also have student loans which will come due at the end of March. I need help. Can anyone tell me how I might qualify for some relief. I should also mention that I have owned my home for less than 2 years and therefore have not much equity built up. Thanks

Bryan

February 19, 2009 10:50 AM

Why doesn't the government let us tap into our retirement/401k's tax free to pay off our mortgages.

Tammy Bagley

February 19, 2009 11:26 AM

My husband was recintly laid off and my child care buss. is down by 50%. Tried to contact my lender several times with no luck. I was told that I had not missed any payments so there for did not need help. Now I have missed one payment in hopes to get some help but now I hear that if you missed payments you do not qualify for help.What can I do!!!!

bud

February 19, 2009 12:15 PM

help

Mark

February 19, 2009 12:19 PM

105% is not going to help the people that really need it. Lenders are aklready giving 97% loans.

bud

February 19, 2009 12:21 PM

help

vincent

February 19, 2009 05:42 PM

Nice, I will imagine people to modify their loan term into 10 years as long as the mortage cost is greater than 31% of their income in order to make the interest rate lower. Short term pain in exchange for long term gain. Nice work!

Mark

February 19, 2009 07:41 PM

Who do you contact to see if you qualify for a bailout reduced mortgage? I hear about all of this help but I am yet to know where to find it. My mortgage company says I am not aloud to refinance!
Any help would be appreciated.

Bob N.

February 19, 2009 08:36 PM

There are plenty of houses empty here in Michigan for under $100,000. Why are we subsidizing people to live in mansions?

A foreclosure stays on your credit report for seven years. But these bailouts will be on the national debt forever.

Mousebender

February 21, 2009 12:19 AM

Is there something in there for you?

The quickest answer can be found by asking yourself one simple question: Are you a renter?

If you are, then congratulations! Your government wants you to pay mortgages for the fraudulent and the irresponsible, and as a bonus, home prices will stay unaffordable for you! Injustice reigns.

Name

February 21, 2009 06:59 PM

It would be nice to refiance and get about 30k in the bank.
If enough people did this that would change the economy.
First I would payoff credit cards then I could spend money elsewhere. But that will never happen if refiancing costs a few thousand dollars to do.
So free refinancing = a boost to the economy and less unemployed.

Terry

February 22, 2009 01:22 AM

It would make more sense for the government to buy the loans from the banks and then rent the property to the defaulted owner.

Donna

February 22, 2009 12:06 PM

To C Houle,

You went above what you could afford and it's people like you that really upset me. Why would you put yourself in that position knowing that you owe student loans? Oh...let me guess why, so people like me who pay their mortgage on time can bail you out. I feel nothing for people who go beyond what they can afford. You should be ashamed.

Jay in OKC

February 22, 2009 01:29 PM

The problem is that the LENDERS are fighting this FORCED loan mod, as long as you pay ontime to the 7% to 15 % int, you are considered a 'performing loan' and make their cash flow look great. Your LENDER wants to KEEP YOU in the HOLE while waliking the line of missing payments. Until the Feds BITE these lenders in the backside, they WILL DO NOTHING, but take your payment AND take the $$ from our 'rocket surgeons' on the hill who passed the first go-round of FRREE TAX PAYER MONEY.

Brett S.

February 23, 2009 10:00 PM

I would like to know why Fannie Mae,& Freddie Mac got help in the bail out, but are not willing to help out homeowners like myself. We have tried several times to get them to help reduce our current and up to date payments, but get denied each time with the remark, "We can't help you because you are locked in for 3yrs @ your current rate, or we can refiance and it will cost you around $10,000.00 in charges and penalties." I want to know why they wont work with us? and what I can do to lower my mortgage payments, so I don't get behind on my payments?

Thanks
Brett S.

Jeff S.

February 24, 2009 11:51 PM

I bought my first home in 2006 at the peak of the market and opted for a fixed rate of 7% instead of the atrractive-looking ARM. I have been incredibly irresponsible in racking up cc debt that I can barely pay the minimums, however, I have never been late or missed a payment and don't intend to. I expect to repay my debt and work through the situation I have put myself into. A 4.5% rate on my mortgage would sure help. I guess I wouldn't qualify, though.

Jon E

February 26, 2009 02:21 PM

I make my payments, I have a job, I have a fairly decent 6.5% motgage rate... I just want to get my piece of the pie. I'd love to get my payments lowered a couple hundred a month so I can pay for my upcoming wedding without issue. I just don't know if it owuld be worth it to refinance if I am going to be leaving my house in the next 2 years?

Sean

February 26, 2009 03:12 PM

Congrads to everyone who was irresponsible and bought houses you couldnt afford(not the people who unfortunantly lost their jobs).I hope all the irresponsible people lose their houses.
Why should my tax money go to YOUR loans.
Ive rented for the last 7 yrs now and cant wait to buy your houses dirt cheap as a forclosurer.
Go luck getting any credit for @ 10yrs.Your also helping my credit look better.
Thanks Again !!!!!!!!!!!!

Struggling

February 27, 2009 04:14 PM

A lot of the comments are angrily deriding people who borrowed more than they could afford to buy a house. The real culprits in this situation are the CEO's and mortgage companies that got bonuses for convincing people that they could afford to borrow money for a house they can't, in the long run, afford. Yes, maybe these homeowners should have known better, but that's no excuse for taking advantage of them. Now us taxpayers are left with the bill while the banks and mortgage people go on extended vacations, and the economy continues to collapse. If you or I rob a bank, we get to pay a fine and go to jail; if banks and corporations destroy the economy, they get bonuses and bailouts. It's just doesn't make sense.

Doug

March 1, 2009 04:53 PM

I was wondering if I qualify for any help on my mortgage? I got divorced and put the house on the market but it won't sell. I am currently paying about 65% of my income on the mortgage (my ex doesn't contribute) I am falliing behind. If I could sell I would, but I need help until then.

short end of the stick

March 3, 2009 10:39 PM

Just because a mortgage broker and your
realtor tell you to afford a million
dollar house on a 50k salary does not mean you that you should. Do you really need to be told this.If you do not understand this ,my 5 year old knows more about basic math than you will apparently ever comprehend.
Here's your sign stupid!!!!
Thanks for screwing me , the responsible homeowner in the process .

MeiMei

March 4, 2009 01:22 PM

To qualify, your mortgage payment must be greater than 31 percent of your monthly gross income.

My gross income is 2,624.00
And monthly payment is 2,930.92

31 percent of 2,930.92 = 908.5852
Which means I don't qualify but who will under this plan.

I thought this was suppose to help I find it hard to believe that this plan will be effective.

jessa

March 5, 2009 01:02 AM

i am in a position where now my boyfriend has lost his job and his income was enough to support the household and have a little extra money to spend on the little things we were set comfortably. i was working as well and the little income that i had was something extra to save for our house renovations well needless to say he was laid off due to no work in this town and the unemployment rate is now at 10% here in Las Vegas, the economy put a lot of people in a bind we out here in vegas. i paid $124,000.00. 2 years ago my house was worth $245,000.00 and now it worth $79,000.00 i refinanced and now it is up to $189,000.00 and at that time if i sold my house i would have made appx. $56,000.00 and now i am buried no one will help i have been here for 8 years and this is the only place that i know as home i have put in for a modification thru SAXON and along with my hardship letter and nothing they told me that oi had 5 days to come up with all of that info i sent it in and NO HELP!!!!!!!!! what is wrong with people they don't understand that hard working people are losing everything that they worked so hard for. i recieved paperwork in the mail and it said that they would help us, well when i called in they lady had me on the phone for over an hour i was so happy that i would get some help WELL,,, she said that i had to come up with $4,000.00 THAT I DON'T HAVE MIND YOU ;)

IT IS EITHER A SCAM OR REAL COMPANIES WANT TO HELP!!!!
S.W.A.T. TEAM IS GONNA HAVE TO PULL ME OUT OF MY HOUSE CAUSE IM N0T LOSING IT
IN THE LAST 8 YEARS I HAVE PAID OVER 120,000.00 AND NOTHING HAS GONE TO THE PRINCIPAL
IM SCREWED CAUSE NO ONE WANTS TO HELP WHAT SHOULD I DO??????????????

REF:SEAN

March 5, 2009 01:15 AM

I THINK THAT IS A LITTLE HARSH DON'T YOU THINK. THERE ARE A LOT OF HARD WORKING PEOPLE IN THIS WORLD AND DON'T LIVE FOR FREE I HAVE NEVER SPONGED OFF ANY ONE I AM 28 AND I HAVE BEEN IN MY HOME FOR ALMOST 9 YEARS. DUDE, YOU NEED TO HAVE A LITTLE SYMPATHY FOR THOSE WHO ARE REALLY IN NEED AND WHEN I SAW YOUR POSTING YOU MADE LOOK LIKE A PERSON WHO IS NOTHING BUT A SELFISH, INCONSIDERATE PERSON WHO CARES NOTHING ABOUT WHAT PEOPLE GO THROUGH AND YOU USE THEM AS A STEPPING STONE TO GET YOU THROUGH LIFE YOU NEED TO DO GROW UP AND BE AN ADULT!!!!!!

sandra

March 9, 2009 10:21 PM

dont you all think this is really geting old...this so called bailout. its a big lie to keep the big corporations going and to make us working class think theres help. Why bother with "is there help for me bailout questions" because its all a big lie. I only hope to see the politicians lose there benfits once there out of office, because they are a good portion of are national debt...in other words give it up people.

What now?

March 10, 2009 11:10 AM

I owed $204,000 on my home, which is now worth at most $120,000. I opted not to go with creative financing and did the responsible thing and went with a 30 year fixed. I lost my second job and my full time job has cut back hours. I contacted my mortagage company to see if they could help me. I was told that I had to prove "hardship" so I played the game of going into default on my mortgage so that my mortgage lender would do something to help lower my payment. After finally getting their attention, they offered to modify my current loan. The best that they could do for me was extend my loan to 40 years and lower my interest for just the first 2 years. Which was very helpful, but they also tacked on $7000 to the loan to make up for the payments I missed. I now owe $211,000, and the house next door just sold at auction for $67,500. I am now too buried to receive any help under the new plan. Forclose? or hope for it to turn around?

Gramgun

March 10, 2009 04:37 PM

This comment goes to MeiMei and is related to the posting made on 3/4/09. You stated the following: "To qualify, your mortgage payment must be greater than 31 percent of your monthly gross income.

My gross income is 2,624.00
And monthly payment is 2,930.92

31 percent of 2,930.92 = 908.5852
Which means I don't qualify but who will under this plan.

I thought this was suppose to help I find it hard to believe that this plan will be effective."

Allow me to show you where you went wrong. Your monthly income is less than your house note. Since this is true, & based solely on your posting, then your house note is more than 100% of your income! As a matter of fact, according to my calculations, your house note is 111% of your income.

How on earth did you figure otherwise?

My family is in the same boat as many other individuals who have been released from employment. My husband brought in 2/3 of our family income, so now we are living off of only 1/3 of what we were used to. I am just writing to find out if this stimulus package could really help us. I read somewhere that after 10 yrs, the interest rate jumps back up to whatever it is at that time...and don't know if this is true either. I guess I am trying to get a better picture of how this works and whether or not it could help us.

harold amerson

March 14, 2009 11:22 AM

my job cut back to 4 days a week.and the insurance has gone up ,have car payment a child in collage my mortage is 478.09 car 383.78 utilities credit card now gone to be off aweek its getting hard

harold amerson

March 14, 2009 11:24 AM

my job cut back to 4 days a week.and the insurance has gone up ,have car payment a child in collage my mortage is 478.09 car 383.78 utilities credit card now gone to be off aweek its getting hard 330 a week pay cheek.

us and them

March 22, 2009 12:53 PM

I have been a responsible person all by life.What this has taught me is how dumb i am what you put in you should get out but this is not the case it rewards the people who are irresponsible. so if you are not creditworthy trustworthy unreliable and inculpable and make bad decisions your doing the right thing you will be rewarded.My home is worth less and i bought in 1995.

SM

April 6, 2009 06:25 PM

Let's see. How many people on here thought you could afford (and "deserved") a house costing more than twice what you earn yearly? How many have paid for their educations before buying a home? How many are crying about the mess they are in yet STILL have credit card debts, internet access, flat screen TV, cellphones, cars less than 4 years old and insist on getting their hair and nails done monthly? How many thought it was okay to pay over $10,000 for their dream wedding? And how many of you are AT LEAST 15 pounds overweight so clearly NOT starving while you tantrum and want the REST of us to bail you out? GROW UP!!!! You're long overdue for a PAINFUL dose of reality.

Jeff

April 9, 2009 12:44 PM

Flat screen tv? Nails done? cellphones? car less than four years old? Crying about my mess? Hardly! When I bought my home I could afford it. It was less than 20% of my income. I lost my job because the company went under this past year. There is NO work in my field where I reside. NOTHING. I have no credit cards, no tv, no cellphone, we didnt have a car for over a year. Riding our bikes to crap jobs, even in the winter. We havent even been able to get hair cuts! I have 4 children and cant afford to even buy them clothes right now. We have a car because my sister gave us her old one. I wish I had internet access, but here I sit at the damn library. We have four children and if we dont come up with 3000 dollars by may 1st our house forecloses. Would I take help if the government is offering? Yes. Have I asked for help no. I have always helped my neighbor and would still give them half of everything I own to help them. It is amazing how greedy and self centered people are!!!

James Goodman

April 10, 2009 12:59 PM

All these comments are well and good, but how do you get the lower mortage rate, so that yopu can put money in the band, or pay off you loan a little faster!

If they would giove everyone over the age of 18 who was a working member of the taxpaying peopl, a percentage of this bail out money it would go further in boosting the economy faster than just saving their home!

James Goodman

April 10, 2009 01:05 PM

Greed is the way of life now days! Instead of bailing out the Major Vehicle Manufacturers, Banks, or Credit card Companies, Give John Q Public a chance to be able to put the money to better use! I mean the Stimulus is great but $ 600 dollars would not even pay my HOuse note!

Give us the Tax Payers 1% of the total bail out Funds for everything I bet the economy will rebound very quickly!

We could pay off our mortages, creditcards, and everything else we owe and still have a little money in the bank for the future!

Mike

April 13, 2009 10:12 PM

This Mortgage Crisis was caused by the invention of these "Liar Loans" and they were given to anyone who had a pulse or could fog a mirror.

This FACT is easy to substantiate through books like "Chain of Blame" or lookup "The Hansen Files" and go to "Inside the Financial Fiasco: Mortgage Madness."

Unemployed homeowners have very few options. No... they probably won't be able to financially afford their home anymore, but at least some of these options could at least give them a fresh start with some money in their pocket and avoid living on the street.

There are more options for homeowners who have a some type of source of income, employed, under-employed, had a temporary hardship (ie. illness, divorce, lost job but got another one), which would qualify them to get assitance and keep their home.

The problem is that Banks and Lenders won't automatically do this for you. It is next to impossible to do this yourself. And if you do get through to someone at the bank who will actually take the time to help you, you can bet your bottom dollar that it will be tilted towards their benefit and it won't be a good deal for you.

The reason for this is simple. The Banks/Lenders are overwhelmed with these requests every day and are under-staffed to handle it. And contrary to popular belief, the Banks/Lenders are very prepared to foreclose on a home and they have a department dedicated to doing just that.

Enter the scams disguised as "Foreclosure Rescue, "Loan Modification," and "Mortgage Rescue." Suddenly there are thousands of home-base businesses, idiot attorneys and mortgage brokers who joined this band wagon and just opened for business within the last few months.

The reason I know what the heck I'm talking about is because I went through a rough time struggling to pay my mortgage after having major surgery. I got ripped off from somebody claiming they could help me. And after tha, I went to the bank myself to try and negotiate with them and got no where.

Fortunately there are honest companies that can help. It took me months to find one that had the right expertise and who helped thousands of others. And it took them 3 months to fix the problem. The proof is that I'm still living in my home with payments I can afford.

And in case you're wondering... yes a loan modification was part of it, but that was a result of their process that did so much more to insure my bank gave me everything I needed to stay in my house. The loan modification was only part of the answer.

The fact is that this failing ecomony is directly tied to the Mortgage industry. If you think the first wave of the millions of foreclosures were something, wait until you see the second wave. It's going to be 4 times as many. Don't believe me. Again... do your research and start doing something about it before it too late!!!

Its about realizm

April 14, 2009 03:27 PM

I read an article covering economic bailout money and what it COULD HAVE DONE FOR - TAXPAYING - AMERICANS. If you take a dollar amount of 1 trillion dollars which is in all less than the government has dished out thus far to do nothing. Then for every -TAXPAYING FAMILY- (sorry to those of you who think living off of the government is a way of life) each member of the household would be eligible for aproximately $7500. That means a husband, wife, 2 kids with a white picket fence and a dog would get $30,000.00 . Do you think people would be worried about getting foreclosed on or do you think people would be able to pay their mortgage up to date. Take care of credit cards, auto loans, or even be able to purchase a new car. What would that do for the economy to put money out there that actually gets spent on the economy. Our greedy government does not look at it that way because they want us to be opressed. These wall street bankers could care less as long as it is not them that is getting hurt. And the NOT SO FEDERAL RESERVE(look it up) is smiling with all the interest we owe them on the national debt. People are going to have to work together to solve this problem. This is our country. The American people are the make the decisions of what happens in this country and what actions we take out of this country. If the government would learn to do what we ask them to do we would not be in this mess. I have went on long enough and hope the best for all in this mess. Have a nice day. Thanks

Terry

April 17, 2009 07:50 PM

Donna...very responsible of you to pay your mortgage on you glass house...just be careful throwing those stones

us and them

April 22, 2009 06:08 PM

Let me make my self crystal clear i have (no credit card debt.i have no car debt.i have always believed that if you cant pay four it in cash you should not buy it.if you use credit you should pay it off and (not carry over. And i am not overweight and i did not pay 10.000 for my wedding.(I
AM DEBT FREE SO WHAT WHO IS BAILING ME OUT FOR DOING THE RIGHT THING

dav

May 6, 2009 09:28 AM

i would enjoy getting a truly modified loan. like many others who bought houses 4-6 years ago, we did not anticipate the current economic meltdown. as a result, ,my employer has eliminated 10% of positions and the associated overtime, and now has reduced all employee pay by 9%-12%. on the brighter side, i still am employed and my family is basically healthy.

i violated what my grandparents learned during the depression years. cash is great, being in debt is dangerous, save like crazy, and ALWAYS be prepared for the emergency that is around the corner.
us and them, can you give a few pointers on how you have remained debt free? do you have any children/medical bills, married/divorced? all these are issues that complicate (in a small or large way) a person's ability to navigate through life's hardships. when i was single, it was very easy to do without. beans and rice, top ramen, and nearly empty cabinets/refrigerator were ok to have.
this is not meant to bash, but if you have been able to stay debt free with all the above commitments, my hat and jacket come off for you.

gail

May 13, 2009 04:31 PM

I don't believe that the working American will ever see any help. The big shot mortgage CEO's will continue to go on lavish trips and eat what they want. Well us we'd better cut back so our tax money can help them.I am paying a 9% rate which is eating my paycheck up.I ask my mortgage co for a modification to a lower rate and they said NO. They said for me to turn my cable off eat less and sell my jewelry, and turn my phones off.I wonder what they are eating.Our house has dropped $250,000 in value.Someday they may just get what they want.my house and not my money to pay interest. I paid them $28700. in interest last year. Why would they want to help me. Mortgage Companies be careful you just might get what you ask for.No one paying you any interest

Lizzy

May 22, 2009 07:16 AM

Everyone is quick to judge others, you do not know what others are going through in there life, and it seems that you would rather see families torn apart by losing their homes than maybe helping people who up until now have worked hard to get the "American Dream".
We bail out these big companies and the executives go on private jets to go on vacation, The average homeowner here is just asking for help so they can stay with their head above water. So what ever happened to help your neighbor? What good does it do to let people lose their homes? What would anyone be so heartless?

marc

June 7, 2009 08:16 PM

Where does one find halp as I am 6 months behind on my mortgage?

Rob

June 15, 2009 05:32 PM

Here is a good story. A little over a week ago I was informed my position at work was eliminated and I was "demoted" with a 3 dollar per hour pay cut. I know I was right at the 31% mark and this will probably qualify me. My employer even advised me to research this on the internet because my number one concern was the welfare of my wife and kids. I am current on my mortg payments and never have been late. If anybody can advise where to find more information out on this it would be greatly appreciated. There are those who do pay their mortg on time but now with the economy the way it is there is no easy way out except for government assistance.

Denise

June 27, 2009 01:59 AM

The American Dream has now become the American nightmare. Come on, everybody, have some sympathy for the people having problems with their mortgages, whether it was due to loss of income, poor money management, etc. Those of you criticing the ones in trouble must feel very smug and superior, but it could be you next, or your parents, siblings, children, or friends. And you talk about your tax dollar, and how it's spent, as if the people in trouble and needing to refinance have never paid any taxes. I guess you have an inate need to make yourself feel better as the majority of us are going down the tubes. been working for 34 years, have paid quite a bit in taxes over the years, and i only pray the money has helped people, not corporations, etc. So all you smug, superior people---answer this--if everyone in jeopardy of losing their homes actually does lose their home, what happens to those houses??? slum lords (superior ah's like you) buy up homes but will only rent to people who pass a credit check. and if you have foreclosed on your home you prob won't pass a credit check, so do these homes sit empty while families live in their car or in the streets?

Kim

July 9, 2009 03:52 PM

I am Realtor(since1985) my husband is an Asphalt Contractor(since1980)We got hit from both ends...gas/oil prices and the housing market, our mortgage company is saying that they cant lower our payments based on my income,it is based on the household income, the loan is in my name only, I got the loan based on my income alone & we are currently separated. I don't want to lose my kids home in which we have lived for 11 years and my marriage due to this stress.......any advice.....????

Ed

July 26, 2009 07:20 AM

I am about 6 months behind in my mortgage
payments, and my wife lost her job.. my hours got cut and then, a 5% reductions in my pay. I need help. Is there any help? And I am upside down in my mortgage. We love our home. What kind of help is there Or do we just walkaway from our dream home.

krkyoldhag

September 16, 2009 11:07 PM

Just had some first hand info on this bailout. Friend lost job 3 years ago and family helped him with house payments of $1800 til 3 months ago..he got notice of foreclosure...has part time job of $10 an hr. down from $150,000 annual ..

Ok b/c his loan backed by fannie mae his bank Chase says he qualified to get the bail out..he called the number and sure enough

his payments dropped to $620

BUT no paperwork..just verbal on phone
they wil refinance his loan for 30 years at 3%

NOW here the question> no one seems to be saying..his taxes an insurance come to about this on his vaulation of $230,00. Owes $140,000

So where does the money for taxes and insurace come from?

Will he find out up the road that he really been "renting" this house with the responsibility of keeping it up?

Will he find out if he able to sell it that there all kinds of fees on his note?

He makes $1200 a month...he will not be able to keep this property up ...he won't be able to pay even the utilities or the $60 a month neighbor asso fees.. and he is more responsible then most.

So are we looking at some kind of down the road shock to him ? And are we looking at a new ghetto right in the middle of our best neighborhoods?

We know that $1200 month income will NOT support an upscale property...

So where are the details on these new arrangements?

krkyoldhag

September 16, 2009 11:14 PM

additional thoughts on my friend's recent bailout...He lost his job 3 years ago and since has refused to even consider taking less income (from his $150000 plus bonues) His family has picked up his tab for that long til finally cutting him off.

He took a parttime job at $10 hour a month ago.

So the reason he qualified: He has 1200 month income
He is 4 months behind on payments and has a fannie mae insured loan

He has an A&M degree ...well qualified for work...

So if you want a bail out...quit your job, take min wage one, get behind on loan and get this 3% new mortgage.

But first you have to just shirk your responsibilities..

Harsh?

Yep...

but truth as I see it.

You guys out there struggling to hold on to your homes...unless you do this and have the fannie mae insured loan...you screwed.

If you do ..then we tax payers are screwed.

In a capitalist market you would sell you home...take your lumps and start over.

In this new society you get the bailout if you are a drop out.

Debbie Helm

November 2, 2009 12:40 AM

I am interested in finding out if we qualify?

Debbie Helm

November 2, 2009 12:40 AM

I am interested in finding out if we qualify?

Kathy

December 8, 2009 12:01 PM

I would like to know why everything goes by your gross? We don't live on gross pay. My mortgage company told us they don't care about any of our expenses like gas, electric, credit cards,water anything other then we make enough to pay the mortgage. Also, we are not behind (yet). I didn't buy a house I couldn't afford, We just refinanced at a high mortgage payment

Hector Martinez

February 28, 2010 07:09 PM

I just have to say that I agree with Kathy.

Whomerver is do the math and saying that your mortgage payment should be 31% of your gross monthly income is kinf of STUPID. If the differance between Gross and Net income was available I would not ask anyone for help, don't you all think so.

Hector

February 28, 2010 07:17 PM

I agree with Kathy.

Under the modification plant it's very clear the goverment is been riped off and whomever is doing the math is kind of STUPID. The plan say's our mortgage payment should be 31 % of our gross monthly income, If the differance income between gross and net was available to us we would not be asking any one for help. Don't you all agree.

kingpin

March 24, 2010 01:29 PM

All of you who are "underwater" do not deserve a home loan bailout. You should have bought a house you could afford you idiots. I mean how dumb can you be? I hope you do go through loan mod hell and then end up not getting it. You should lose your home b/c you were too dumb to buy a house you could afford. That is your own fault and I hope all of you suffer the consequences for many years to come. You should be ashamed of yourselves.

Poor Sap

April 6, 2010 02:06 AM

KingPin:

I'm confused by your statement that those who are under water do not deserve a bailout.

Being under water does not mean that they didn't buy a home they could afford. My husband and I are comfortably making our mortgage payments, but why wouldn't we want the same opportunity as those living around us in our neighborhood - weather it be from a short sale or from a loan modification?

The fact is, a full 2 years before the bubble burst we paid 600k for our home. We were approved for 100k more, but were not comfortable with maxing out a loan just b/c we "could". So...we went with what we felt was within our means. Our equity increased by 40k within the first year we were in our home. Within our 3rd year, "it" hit the fan and our home lost 200k in value. People began foreclosing around us. The foreclosed homes were subsequently purchased for 1/2 of the original purchase price quite effectively lowering my home value. So, while I can still afford my home - why would I not want to get the benefit of a loan modification or interest rate reduction? We are paying hundreds of thousands of dollars to get our home paid down to the to the current "fair market value" - and all this after putting down a full down payment.

So, do I want to be "bailed out". No. I don't think it is that dire...however, the banks loaned to those who couldn't afford it. Those loans impacted me directly with the reduction of value to my home. Why shouldn't we have some assistance? Once again, the responsible are penalized for doing the right thing.

And as a side note...Obama is taxing the hell out the "wealthier" population (ie: 250k and above). Well thanks Obama... I've been working hard for years - currently spending 50-70 per week doing so..finally making some deserved money..and guess what!? That is wiped away with a simple cross into the 250k range (and that is not alone...that is joint income) Do we deserver that? loss of 200k on our home and then a raise in taxes b/c we just made it above the 250k income barrier?? It feels to me like the same poor saps keep taking the hardest hit. Unfortunately, I appear to be one of them.

- Poor Sap

Poor Sap

April 6, 2010 12:04 PM

KingPin:

I'm confused by your statement that those who are under water do not deserve a bailout.

Being under water does not mean that they didn't buy a home they could afford. My husband and I are comfortably making our mortgage payments, but why wouldn't we want the same opportunity as those living around us in our neighborhood - weather it be from a short sale or from a loan modification?

The fact is, a full 2 years before the bubble burst we paid 600k for our home. We were approved for 100k more, but were not comfortable with maxing out a loan just b/c we "could". So...we went with what we felt was within our means. Our equity increased by 40k within the first year we were in our home. Within our 3rd year, "it" hit the fan and our home lost 200k in value. People began foreclosing around us. The foreclosed homes were subsequently purchased for 1/2 of the original purchase price quite effectively lowering my home value. So, while I can still afford my home - why would I not want to get the benefit of a loan modification or interest rate reduction? We are paying hundreds of thousands of dollars to get our home paid down to the to the current "fair market value" - and all this after putting down a full down payment.

So, do I want to be "bailed out". No. I don't think it is that dire...however, the banks loaned to those who couldn't afford it. Those loans impacted me directly with the reduction of value to my home. Why shouldn't we have some assistance? Once again, the responsible are penalized for doing the right thing.

And as a side note...Obama is taxing the hell out the "wealthier" population (ie: 250k and above). Well thanks Obama... I've been working hard for years - currently spending 50-70 per week doing so..finally making some deserved money..and guess what!? That is wiped away with a simple cross into the 250k range (and that is not alone...that is joint income) Do we deserver that? loss of 200k on our home and then a raise in taxes b/c we just made it above the 250k income barrier?? It feels to me like the same poor saps keep taking the hardest hit. Unfortunately, I appear to be one of them.

- Poor Sap

In Florida

April 20, 2010 01:39 PM

5 years ago my home was Appraised at 85,000 i owe 59,000 on it now ..after the probate when my husband passed away in 1999.. they called it a Ratification of a modification i went to my bank last week to refinace.. there not the morgage holder now! Had another Appraisal done which cost me 450.00 i thaught ok i'll pay this i know the loan will go through..( NO Problem) Well i was WRONG .. the apprasial come in at 48,000 i was Shocked FLOORED hurt and upset.. I was turned away... Will the goverment bail me out .. Im good on my payments not missed any.. Throws hands up in Air!! Im sure there is plenty out there like me I Guess im paying for all the forclosers and when i need help its not there.. Sad in Florida

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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