From: http://www.whitehouse.gov/blog/09/02/18/Help-for-homeowners/ I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe? The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lenderâs discretion modifications may include upfront reductions of loan principal. I heard the government was providing a financial incentive to borrowers. Is that true? Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period. Is my lender required to modify my loan? No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate. These are the issues I have the most problem with. I'm not opposed to allowing re-fi's to lower payments, but lowered principals and financial incentives? That's fucked up. How bout throwing a bone to those of us who played by the rules...like a tax break for paying our mortgages and doing so on time? The same day that Santelli ranted, Haines asked Rep. Donna Edwards, D-MD, about the lowered principal along the lines of: "If someone gets their principal lowered, and the value of the property goes back up, who keeps the profit?". Good question. The woman didnt really give a decent answer. Video clip below. http://www.cnbc.com/id/15840232?video=1039899685
You take the hit dumbass because you bought an overvalued home. If the market drops the price, that is because your home cost too much in the first place. Quit leveraging your grandchildren's futures just so you can get the price of your home back above water you selfish r'tard. -burn8
I can't believe people say things like this on a "trading" forum. If you can't see the obvious here, there is no way in hell you are a trader.
Look, dumbass, the market prices of homes over the last several years was distorted by what is perhaps the biggest financial fraud in history. The real estate bubble happened because mortgage lenders, derivative traders (like that bozo Santelli), investment banks pretty much raped and pillaged America's credit system while Bush's regulators were asleep at the switch. And you want me to take the hit for somebody's else's crime? That's right, crime. People in the mortgage and financial industry should be going to jail for what they've done to the nation. Sure, some homeowners got greedy because they wanted 5 bedrooms and a pool. But who created the whole expectation of trading up to $600,000 homes in the first place? The financial-mortgage complex did. If the real estate market was a relatively transparent and free market and I make a dumb mistake, then I don't expect the government to bail me or anyone else out. The R.E. market, like I said, has been grossly distorted by fraudulent and opaque transactions since at least 2003. No way should the little guy get screwed by larger dishonest forces beyond their control.
Economics as a subject is garbage, but there's more truth to be uncovered in econometrics. But good econometricians won't tell you what they know -- they'll go bet on what they know in the markets in the first place. The economists that are out there dispensing advice are the ones you don't want advice from in the first place.
LOL! He spoke to High Schoolers. What the hell do they know about financial responsibility? Talk about picking your cheer leaders!
And obviously you weren't smart enough to see it. Apparently you subscribed to the theory that there would be a greater fool to come along and buy your home for more than you paid. Ya know, in the financial markets the idea is to buy low and sell high. Buying high and hoping to sell higher. Well, that doesn't always work out now does it?
Buying sdli in 1999 for 400 bucks a share on margin was a bad decision. Equally as bad was buying a house after it went up 150 % from 2000 to 2005 at market peak prices and expecting to refi in perpetual bliss from your atm I mean house every time you needed money. Now before you tell me that the little guy didn't know any better give me a break. I don't take the elitist attitude that I am smarter than everyone out there. Many people did not live above their means and were waiting for homeprices to fall out of bed so they could buy the american dream. They did not fall for the hype of home shows like flip that house and property ladder, they were waiiting to make their move and the government is fucking them up the ass right now. A shit storm is coming to washington and Rick Santelli is just getting the ball rolling.