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View Diary: 'We can't wait': Obama administration announces details of new rules for mortgage refinancing (110 comments)

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  •  So if someone has perfect credit, which probably (21+ / 0-)

    means they aren't in danger of foreclosure because they haven't missed payments and fallen behind, and that they haven't lost employment or income, then they can get a new loan.  But if someone doesn't have perfect credit because they lost a job or had wages reduced and got behind on payments, they're still SOL.  
    I don't see how this is going to help curtail foreclosures and the people who really need help.  

    •  No it doesn't help everybody (23+ / 0-)

      then again there is no single thing that will help everybody. However this does help about 1.6 million home owners.

      I will say this my credit was/is in the tank, foreclosure was in the works and I went to my credit union which still owned the mortage Credit Unions don't sell off their mortgages) and said what can I do to save my house. They were very quick to say well how about you apply for a new mortgage with us at a lower rate (3 points lower) under a hardship provision and we will approve it.

      Now I did have the advantage of the Credit Union holding the original mortgage on my home. I am not sure you could go to a credit union if your mortgage was held by someone else and get the same deal.

      But just another reason to get the hell away from the big banks.

      Republicans 2012 . . . Keeping millions out of work to put one man out of a job.

      by jsfox on Mon Oct 24, 2011 at 10:35:46 AM PDT

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    •  It probably won't (9+ / 0-)

      but it could help inject additional money into the economy. Also, get rid of some of the high interest loans that banks are benefiting from.

      My take on this is that there is very little he can do as long as the republicans are determined to thrwart him. He can only try to deal with the economy by chipping around the edges.

      Shop Liberally this holiday season at Kos Katalog

      by JamieG from Md on Mon Oct 24, 2011 at 10:55:26 AM PDT

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    •  Yeah, that's when I stopped reading... (13+ / 0-)
      Homeowners must be making on-time payments and be current on their mortgage that is owned or guaranteed by Freddie Mac/Fannie Mae.

      The loan also has to have been originated or have been sold to Fannie Mae or Freddie Mac before June 2009.

      Sometimes I feel like I come from another planet...this is supposed to make sense???

      Photobucket

      'We Will Not Be Co-opted' ~Jesse LaGreca

      by Annalize5 on Mon Oct 24, 2011 at 01:17:16 PM PDT

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      •  Actually, makes sense... (4+ / 0-)
        Recommended by:
        BigAlinWashSt, wishingwell, askew, Byblis

        ...one of the real problems with past attempts to help homeowners was hat the homeowners actually had to be nonperforming on the loan.  In other words, people who were dooing the "right" thing and paying their mortgage every month could not get help.  That approach bred serious resentment (along the lines of "those a$$holes bought more house than they oculd afford, while I'm stuck paying my mortgage - why the heck should THEY get more help than me?"

        We reach for the stars with shaking hands in bare-knuckle times.

        by TheOrchid on Mon Oct 24, 2011 at 01:32:10 PM PDT

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        •  It's more than that though... (4+ / 0-)
          Recommended by:
          michelewln, Byblis, Annalize5, TexasTom

          Many home owners can pay their mortgage but are stuck in their home and can't refinance to lower rates.  I have excellent credit and an income that is enviable.  I represent no risk but for the risk of strategic defaulting because I'm so deeply underwater.  If I could refinance, I could save $500-$700 / mo on interest.  This is money that I would immediately go back into the economy instead of paying interest to a bank that won't loan.  This is economic stimulus and it won't even cost the government hardly anything.

          •  BrowniesAreGood... (1+ / 0-)
            Recommended by:
            BrowniesAreGood

            thank you and I get that. I'm also glad it's good for you. Sincerely.

            I have excellent credit and an income that is enviable.  I represent no risk but for the risk of strategic defaulting because I'm so deeply underwater.  

            If I could refinance, I could save $500-$700 / mo on interest.  This is money that I would immediately go back into the economy instead of paying interest to a bank that won't loan.  This is economic stimulus and it won't even cost the government hardly anything.

            The people who have been left out in the cold, however, are the people who've lost it all. They've no job, no money and what they have left of a credit rating has been shredded. Likely they've maxed out cards buying groceries to keep body and soul together.

            Forgive me if I sound harsh but the way this feels to me is just another slap in the face to those who have been suffering without the hope of work, who have already lost their homes, etc etc.

            'We Will Not Be Co-opted' ~Jesse LaGreca

            by Annalize5 on Mon Oct 24, 2011 at 05:57:44 PM PDT

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            •  Sorry... (2+ / 0-)
              Recommended by:
              cany, Annalize5

              ...but to dismiss a program that will help some people because it doesn't help everyone just seems foolish.

              Exactly what do you think the president can do to hep those who are long-term jobless and have run out of money, without getting the approval of the congress?

              Political Compass: -6.75, -3.08

              by TexasTom on Mon Oct 24, 2011 at 07:11:27 PM PDT

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              •  Well, Tex, dunno if I could say... (0+ / 0-)

                exactly, BUT (!) given his ability to pronounce the edict he just pronounced, it would seem to me his heart wasn't in doing something, anything (w/o congressional consultation) untilllll.....

                his upcoming bid for re-election?

                Wait...maybe somethin' along these here lines:

                what would be helpful is about 2 years amnesty where I could put the mortgage payment back into the house and repair the

                windows~ old and falling apart

                Bathroom and Kitchen~ severe water damage

                etc.

                'We Will Not Be Co-opted' ~Jesse LaGreca

                by Annalize5 on Mon Oct 24, 2011 at 07:37:59 PM PDT

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                •  Danged link didn't take... (0+ / 0-)
                  This isn't what I need (1+ / 0-)

                  I don't need to refinance. I am underwater in my mortgage.

                  I need to make major repairs in my home, but what is the point of sinking more money into a house that I can't sell for what I owe?

                  It makes more sense to walk away right now.

                  what would be helpful is about 2 years amnesty where I could put the mortgage payment back into the house and repair the:

                  windows~ old and falling apart

                  Bathroom and Kitchen~ severe water damage

                  etc.

                  Nice try though.

                  I'll believe corporations are people when Texas executes one.

                  by Hkpa on Mon Oct 24, 2011 at 06:21:46 PM PDT

                  'We Will Not Be Co-opted' ~Jesse LaGreca

                  by Annalize5 on Mon Oct 24, 2011 at 07:41:16 PM PDT

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              •  I think you're being overly harsh... (0+ / 0-)

                ... I don't think he/she was "dismissing" the program.  I suspect that you could be interpreting the comment in the most negative light rather the most positive.

            •  I also get that. (1+ / 0-)
              Recommended by:
              Annalize5

              But I guess I don't feel like doing nothing is preferable to doing something good even though it's not all that should be done.

              Also, I'm not supporting this action for me even though it does help me.   It's going to be an effective stimulus for almost no cost.  This is good for all Americans.  And it's not all that we should be doing but it's better than not doing it.  And it's what Obama can do by executive order.

              •  Agree with you, BrowniesAreGood... (1+ / 0-)
                Recommended by:
                BrowniesAreGood
                But I guess I don't feel like doing nothing is preferable to doing something good even though it's not all that should be done.

                Sometimes I can almost hear Wordsworth whispering in his angst and frustration at the "Devil's Bargain" humanity has made with his interior life.

                The world is too much with us; late and soon,
                Getting and spending, we lay waste our powers;
                Little we see in Nature that is ours;
                We have given our hearts away, a sordid boon!
                ~ William Wordsworth

                Forgive me, I sometimes get like this. I am glad for you, I meant that.

                'We Will Not Be Co-opted' ~Jesse LaGreca

                by Annalize5 on Tue Oct 25, 2011 at 01:08:33 AM PDT

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    •  It will help a number of people with good credit . (10+ / 0-)

      Imagine you have a house that was worth $400,000 when you first financed it, but will assess for $300,000 now.

      If you go in to refinance, the bank will ask you to pay down the mortgage ... they can't finance more than 80% of $300K = $240K. That means you will need to put up a lot of money that you may not have, despite your excellent credit.

      What Obama is doing is allowing you to refinance at that $400,000 value without requiring a new assessment.

      I have seen someone say that it will help 600,000 to 1 Million underwater buyers.

      •  Better estimates (3+ / 0-)
        Recommended by:
        BigAlinWashSt, michelewln, askew

        Here:

        Barclays Capital analysts said the FHFA estimate could be low, considering there are 1.65 million loans originated before June 2009 – the origination cut off is May 2009 – and hold a loan-to-value ratio between 80% and 125%. Another 240,000, they said, are above 125% LTV, which would still qualify as the ceiling was removed. They peg the final eligibility universe to be between 1.9 million and 3.1 million borrowers.

        "The administrations estimates are much lower than those numbers; we believe the overall number could be higher, given the substantial effect of putback waivers," BarCap said.

      •  I don't think that's right. (0+ / 0-)
        Additionally, the current loan-to-value (LTV) ratio for the property must be greater than 80 percent.

        It appears to be no different than a conventional refi.  

        "Rules must be binding. Violations must be punished. Words must mean something." President Obama in Prague on April 5

        by jlynne on Mon Oct 24, 2011 at 04:26:48 PM PDT

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