This plan includes second and third homes ?

xoneinax said:This plan includes second and third homes ?

article said:Investors who do not occupy their homes would be excluded

http://www.marketwatch.com/news/story/us-unwraps-latest-plan-stem/story.aspx?guid={77CC727F-8A4D-425A-BBB7-4970FDA75346}&dist=msr_16

Details:
Under the new program, mortgages on owner-occupied homes that are at least 90-days past due with a loan-to-value of 90% or more will be eligible for the streamlined modification. Homeowners who owe more on their home than it is worth will be eligible.

Borrowers should contact their servicer - the company they pay each month - to see if they are eligible.

The borrower will ultimately be responsible for paying the full amount of the principal borrowed, but payment on part of the principal can be deferred to make the monthly payment affordable.

Homeowners who purposefully default on their mortgage to get a modification will not be eligible. Borrowers will have to submit a statement showing financial hardship or a change in financial circumstances, along with proof of their income.

The modification will become final once a borrower has made three payments under the modified terms.
Mortgage-servicers will be paid a fee of $800 to modify loans to encourage them to participate.

These are fannie and freddie mac loans and since they were taken over by the Federal govt, WE are paying for it. Also, the LTV has to be greater than 90% - last time I checked, 130 was greather than 90. I assume that if the LTV<90, the govt does not help out because the poor moron did not borrow enough!!!! I would also assume that for LTV<90, there are private market opportunities to refinance hence the taxpayer is selectively choosing to do business with deadbeats and let the private market (who has already gotten a lot of $$$ from the TARP) get the "good" customers. We are talking about 60% of all mortgages (underwritten by Fannie/Freddie) and hence the principal amount is in excess of 10 TRILLION dollars. The implicit subsidy under this plan will be in excess of $400 billion PER YEAR!!!

HumDoHamaraDo said:Why don't you guys get it, there are more homeowners than renters, there are more debtors than savers. In a democracy, the benefit to the majority usually gets the most votes for the politicans, thus bailouts are targetted accordingly. There will be no bailout for renters or floor on your savings rate.

Democracy= Mob Rule

jayK said:Dealguy123 said:They were talking/pushing 40 yr loans, refi borrowers to lower rates, and reducing principal amounts. The kicker with reducing principal amounts, is that you will still have to pay the principal back as a balloon note or some other way at the end of the primary loan! ROFL. Then the next question is.. whether the new loan will in fact be a recourse loan = lender owns you. They might even go after property appreciation as well.. so while families will get to "keep their home," they're ultimately paying for it. Sounds good to me!Agreed, sounds like the plan was actually thought out pretty well. Delinquent borrowers won't be getting a free ride, taxpayers won't be on the hook, and fewer people will foreclose. Win-win-win.

except for people who don't agree with the government artificially propping up the housing market. This will reduce the number of foreclosures, which will reduce unsold inventory and eventually cause prices to stabilize. In reality every house that the borrower couldn't afford with these exotic loans should be foreclosed and should continue to push prices lower.

AbbaZabba said:jayK said:Dealguy123 said:They were talking/pushing 40 yr loans, refi borrowers to lower rates, and reducing principal amounts. The kicker with reducing principal amounts, is that you will still have to pay the principal back as a balloon note or some other way at the end of the primary loan! ROFL. Then the next question is.. whether the new loan will in fact be a recourse loan = lender owns you. They might even go after property appreciation as well.. so while families will get to "keep their home," they're ultimately paying for it. Sounds good to me!Agreed, sounds like the plan was actually thought out pretty well. Delinquent borrowers won't be getting a free ride, taxpayers won't be on the hook, and fewer people will foreclose. Win-win-win.

except for people who don't agree with the government artificially propping up the housing market. This will reduce the number of foreclosures, which will reduce unsold inventory and eventually cause prices to stabilize. In reality every house that the borrower couldn't afford with these exotic loans should be foreclosed and should continue to push prices lower.

too bad it isn't going to happen. Mob rules!!!

I pay my bills on time. where is my bailout?

I tell you what...as a larger and larger percentage of people's credit is harmed mark my owrds the lending standards over the next 2-5 years will drop proportionally. End result lousy credit will still get you a loan. I recently saw this first hand as recent bankruptcy yet bank still allowed vehicle loan on actually decent terms. Makes me sick personally, there may even come a day I say the hell with it also and quit paying.

jayK said:Metric said:Yep, so those who kept to a good income to debt ratio are finding the squeeze tough but making payments and staying current get jack.Not true - responsible homeowners will get a clean credit report. You can bet that people who end up using this plan will have their credit negatively impacted, same as a foreclosure.

goodgoth said:HumDoHamaraDo said:Why don't you guys get it, there are more homeowners than renters, there are more debtors than savers. In a democracy, the benefit to the majority usually gets the most votes for the politicans, thus bailouts are targetted accordingly. There will be no bailout for renters or floor on your savings rate.

Democracy= Mob Rule
If we lived in a true democracy where everyone voted on the issue, it would be fairly easy to pass a tax rate of 90% on all individual income above 60K. That would be Mob Rule.