Homeowners "Help" Plan Revealed..

[HennysMom]

Please - NO POLITICAL BASHING as that will get this thread closed. We can debate it NICELY as adults I believe.

Okay folks.. here it is. I'm posting this because there are many out there that may be helped by it.

I for one am very uncertain about it because its basically an ARM, which is what caused alot of this turmoil to begin with... so... I dont know

Acutal Plan:

http://treas.gov/press/releases/reports/modification_program_guidelines.pdf

Summary:

http://www.treas.gov/press/releases/reports/guidelines_summary.pdf

 

[Rhett&SarahsMom]

all I know is that my dh and I might qualify for it and I am taking advantage of it if we do.

Since I lost my job and our electric rate etc have gone up. And the price of gas is going up(higher still if our Governor gets his gas tax increase)
And my finding a job here looks dim. I will gladly use this to lower our monthly payments.

It isnt like an ARM in that the rate will only go "up to" what the current rate is over 3 years(?) or the original mortgage rate. Which ever is lower. Ours is at 6%. Not bad. But we are having some issues paying the mortgage since I cant find a job. And if my dh were to loose his job we would ot be able to make the payment at all.

We have already had the auto loan reworked and with luck WF will re work our mortgage as well. Any extra $ will be spent on some day trips, home (coop) improvements and the like. All the better to the money flowing back into the economy

 

[sherrydeanne]

I seem to be in the boat that isn't covered. Our mortgage isn't through Freddie or Fannie, but we are almost upside down and can't refinance. It sounds great for the people it covers, but there are still a lot of us floating around out here.

 

[HennysMom]

Yeah its all kind of sketchy right now, but its premise is sort of a cross between 1. an ARM (where it can go up 1% a year) until it gets back to your original percentage rate; 2. I heard on the news last night where it is mandated that those that apply and qualify for this program MUST go to debt counseling (there is no option there) and must not obtain further debt and/or credit cards in the years they are enrolled in this program or they will be kicked out; and 3. it doesnt help those that are upside down in their mortgages due to the economy.

So.. for all of those that their values are falling but are making their payments faithfullly, they're not helped by it. Kind of screwed up in my opinion in a way because they're hurting just as badly since they cannot refinance their exisiting mortgages for lower rates since banks wont touch them. Also, if you dont have alot of debt and the government thinks you can make your payments even if you are upside down or can SAVE MONEY by refinancing/ renegotiating your rate for a better one , you wont qualify either.

I dont understand why EVERYONE cant just renegotiate their current rates - not cash out - no paying outrageous closing costs and fees - just renegotiate their current interest rate down to save money. I'd love to be able to do that.. but...they wont let me unless I have 20K up front in "fees"

Stupid.... ALL i want to do is save money and have the same options everyone else does - my husbands job is on the line just like alot of other people's out there but - until he actually loses it... we cant do anything. That doesnt seem right to me...every day its precarious at best, even with no bills and only a mortgage - but being on disability doesnt even cover that so if he loses his job.. we're screwed. I simply want to renegotiate my current interest rate - thats all, to save us money! Ugh...