Comments on: Fannie/Freddie – Come Get Your Loan Mod & Pay For Life

By: shane

shane — Thu, 15 Jan 2009 15:43:47 +0000

naca.com
is a non profit organization ,
I would definitley not try doing a modification yourself , Iworked with chase bank after going over by bill statements to get under the 38% THEY ACTUALLY TRIED TO CONVINCE ME OF GIVNG THEM DIFFENET INFORMATION , SO THEY COULD DO A MODIFICATION. FOR EXAMPLE MY HEATING AND POWER BILL ON ITS AVERAGE, THEY SAID WELL CAN YOU GET THOSE DOWN ABOUT 50 A MONTH AND GET YOUR GROCERY BILL DOWN A 100 , WE HAVE THREE PEOPLE IN OUR HOME THE AVERAGE BILL PERSON IS 12 A DAY WE ARE MUCH LESS THAN THAT , YET THEY WANTED OUR TOTAL FOOD BILL FOR THE MONTH TO BE AT 400 . I IMEDIATELY DID NOT COMPLY AND WORKED WITH NACA.COM
I HAVE HAD EVERY INTENTION OF TRYING TO GET THE LENDER TO PARTICIPATE WITH H4H PROGRAM WHERE THEY REFINANCE THE LOAN AT 90% percent of the value , but it will be fixed at a 7% rate, although i will not decrese the value that i owe , it is most likely my loan will deducted to 3.5% interset rate for a set 5 years , this will make my payment much smaller for and affordable .
good luck with yours

By: Fannie and Freddie Fast Track Modification Program | Streamline Modifications | Truth in Foreclosure

Tue, 13 Jan 2009 14:03:00 +0000

[...] to Mr. Mortgage, here are some potential consequences for accepting the terms of a Fast Track Loan [...]

By: Loan Modification: Fannie and Freddie Streamline Modification Program « Cash is King

Sat, 10 Jan 2009 17:12:30 +0000

[...] to Mr. Mortgage here are some potential consequences for accepting the terms of a Loan [...]

By: Negative Equity Mortgages vs Cram Downs - Which is Better? at Creditor.net

Negative Equity Mortgages vs Cram Downs - Which is Better? at Creditor.net — Thu, 01 Jan 2009 20:10:20 +0000

[...] of the mortgage loan modification “fix” programs are pretty crappy, trying to turn underwater homeowners into indentured slaves: Home owners! Accepting this ’solution’ means [...]

By: Low Mortgage Rates to Spur New Wave of Defaults | The Big Picture

Low Mortgage Rates to Spur New Wave of Defaults | The Big Picture — Tue, 30 Dec 2008 15:03:49 +0000

[...] Fannie/Freddie: Come Get Your Loan Mod and Pay For Life [...]

By: GSB

GSB — Mon, 29 Dec 2008 17:58:40 +0000

This Mod Program is horrible. Its also very sad to see people taken advantage of like this. The loan programs which got us into this mess allowed for up to 50%DTI, 100%LTV(sometimes125%LTV), 580 credit score, NINA, stated income, stated asset, silent seconds, teaser rates, 40year terms, and even sometimes a compensating factor which allowed one to waive a lien on credit to be paid off to name a few. Although it was up to individual banks and secondary investors to pick and choose their own criteria they would like to lend or invest on, these programs were backed by Fannie and Freddie. Thus giving these investors a vehicle to unload their under performing paper on.
The secondary market investors is the main reason for this collapse. They took these pools of loans and hedged them allowing them to make millions over months rather than years. This is where the GREED comes in. I have yet to see any of the media scum reporting on how much CITI made hedging their mortgage backed security pools. Go online and serch, I bet you wont find one search regarding the companies who pulled out of the secondary market, not one. Now if the liquidity in the secondary caused lenders to loose the ability of paying off their warehouse lines. Why is this not part of the discussion?
The loan mod itself is easy to fix. Apply simple underwriting techniques to a persons financial/property situation. If the existing princilpe doesnt work in regards to LTV and DTI then take it down til it does. Keep the amortization at 30yr and make it so people have the ability to make payments. Because $1 is better then no dollar. Now I do nt think we should allow people to capitalize on these loan mods. if you are modifying the original loan then your locked in for ten years, you must O/O and you can only refinance at the original princilpe loan amount as the LTV. For instance, if your original princilpe was $150,000 and it needs to be set to $135,000 but the FMV jumps to $200,000 then you only have the ability to refinance at the original principle $ amount. This will insure the LTV’s stay in line until we get the scum bag secondary lenders back in the game.
I have one more point about GREED. $150,000 loan @6.5% for 30 years will cost you $341,316.73, which you will pay $191,316.73 in interest! Is their really a need for this much interest paid on a home loan? Why should the investor make the $150,000 back twice plus $41+k? This is over a full 30yr term. Assuming someone refi’s in 10yr’s, look at the interest plus principle paid back when the new note holder takes over! ITS GREEDY ASS SHIT!

By: Mr. Mortgage’s Guide to the TRUTH! » Low Mortgage Rates to Spur New Wave of Defaults

Sun, 28 Dec 2008 14:19:37 +0000

[...] Big Part in the Great Housing/Mortgage CrisisPandora’s Box – Prime Mortgages May Get TransparencyFannie/Freddie – Come Get Your Loan Mod & Pay For LifeCalPERS Devastates Itself & Will Charge TaxpayerMillions of Small Business Owners With Toxic [...]

By: John

John — Tue, 23 Dec 2008 19:11:53 +0000

I am one of the lucky few I believe. I saw these troubling times coming several years ago. I sold my house and land, which was paid for. Cashed out my 401k. Now I own nothing, in the USA, and am free to go where I choose. I believe that things are going to get a hell of a lot worse and more people will have no choice except to walk away. I would not buy ANY house in this market. No matter how “good” the deal.

By: Wm Moores/Appraiser Fla

Wm Moores/Appraiser Fla — Mon, 22 Dec 2008 22:11:28 +0000

It’s quite simple really, America’s wealth was based on the equity of real estate and the paper written against it. Investors saw a way to tap into that equity. Savey investers started a refi market that has never been seen before, then they could apply these exotic loan programs to purchases or was it the other way around? I can’t get the picture out of my head of W on TV stating how wonderful that home ownership was at it’s highest levels ever. I foged the mirror, now give me the money. Reminded me of the time he was giving such praise to “Brownie” from FEMA for doing such a great job after Katrina. Or was it after he was in his flight suit with the banner “Mission Accomplished” in the back ground? Do not be opptumistic, it will take 8-10 years for this market correction to work out. These programs will slow the process further and prolong the recovery even more.

By: BertDilbert

BertDilbert — Sun, 21 Dec 2008 22:36:24 +0000

Susan

You said: “Why wouldn’t the proposal work? Did I forget about any percentage of the population?”

You left out the banks and pension funds and insurance companies and Warren Buffet. This is going to have to involve the “Enhanced Evergreen Tax Credit” which the bank would be able to place on the balance sheet in the asset column in exchange for the principal write down. I am not going to go into how that mechanism would work because I believe that capitalism should prevail, bad behaviour gets punished and good behaviour is rewarded in kind.

Your explanation for renters is a kick in the teeth.

“If you wanted a group D- they are the renters, who would be entitled to the full range of interest rates based on their credit scores and underwriting criteria for all houses at the DISCOUNTED NEW VALUE.”

What discounted value would that be? Your proposing to prop the market and then let them have what they are entitled to with no action on anybodies part. By disallowing the natural clearing mechanism of market forces, you are not allowing them to pick up a house at the lowest possible price. It is the renters that burn down the city when they get pizzed off, they are the ones that don’t have a vested interest.

Your proposal leaves the lowest class of society out and moves the balance due onto their balance sheet of the Federal deficit which they will be responsible for later. This is kind of like communism reversal, not sure they have a name for it.

I have an idea on how you could include the renter in on the program. Anyone accepting aid from the government on a principle write down has to “adopt a renter”. Under this program, all the renters would be thrown into a giant raffle drum and randomly selected to be paired with the receiver of the government assistance. The renter would then be entitled to any future upside on a formula based on % of principal reduction.

The homeowner then also has the freedom of choice. They can take the government aid, reject it and keep the home if possible, or dump the home and throw their name in the raffel barrel.

This way, everybody gets something and you have a greater chance that the renters don’t burn your house down later when the riots start.