Millions Of Homeowners Don't Qualify For Obama's Mortgage Assistance Program

New York Times:

MESA, Ariz. - She had seen the advertisements for the new government program offering relief. She had heard President Obama promise that help was on the way for homeowners like her, people who had lost jobs and could no longer make their mortgage payments.

Read the whole story: New York Times

Comments

[Liberal2]

Well, dammit, if millions of homeowners had qualified, there wouldn't be millions in bonuses for Wall Street execs.

[formerprosecutor]

Everyone that insists on applying some self- made "standards" to who should get help and who shouldn't; might remember that HUNDREDS if not thousands of financial pundits said: pay off your high interest credit cards and car loans with home equity loans. " Not only are those debts sucking you dry with high interest rates but THAT loan will be tax deuctible interest."

Who didn't promote the use of your home equity to rid yourself of debt?

The real estate market was going up jobs were fairly secure, TV was full of "flippers " making big profits in real estate, who knew within two years it would all come tumbling down. Certainly not a government secretary taking home 2k a month.

Put the blame where it belongs (de-regulation), not at the doorstep of the working class.

[Austrian School]

Everyone can share in the blame. The people who sold these mortgages, and the people who bought them. It takes 2 to tango.

[formerprosecutor]

I have avoided answering anything you posted because you are not professionally knowledgable and insist that you are,
but this comment shows you understand little about our system and how we view legal duty and responsibility.
I have really no idea what your comment meant (nor any of your others, other than personal unsupported opinion you pulled out of your a---) but there is a concept , within, the law of superior knowledge.
That means that lenders are far more "legally sophisticated" than borrowers. Since de-regulation, WE have relied on lenders to explain all of terms and consequences, thoroughly, in a manner that a person with an 8th grade education can understand. That was the standard pre-1975 when we had much lending regulation. Since then, they have been on their honor to do so. I suggest that you educate yourself to the concepts of predatory lending and the elements of such. I know that younger people have been indoctrinated into the " you are on your own" and buyer beware" BS promoted by those that would very much like to prey on the defenseless. But it doesn't make it right, legally or morally. Historically, the "banks" have had to be put intheir place several times. Read some Jefferson and educate yourself about T Roosevelt and the banks, and get back to me.

[apingebrig]

Financial advisers would recommend not taking out high interest credit cards in the first place!

[jrmarsh]

Forgot to mention, my bank sold my loan to Goldman Sachs, your loan has to be with Fannie Mae or Freddie Mac to be eligible for this program.

[formerprosecutor]

Have you checked to see if they have to honor your original mortgagor ?

[jrmarsh]

I've played by the rules, I've paid my mortgage on time, never taken a dime out of my house while others were using their homes like an ATM. Some people in the neighborhood tried to flip a house and failed, which hurt everybody around us. Then the meltdown came and people who's homes are worth 1/2 of what they owe just started walking away, further hurting people like me. I need a loan, I'm underwater and no bank will do it.

I am about to have a disabled child, he'll need lots of medical care. There are all these wonderful programs out there that I get to pay for with my tax dollars that I don't qualify for.

[Austrian School]

I don't want to sound cynical, and I understand you're hurting right now, but:

Why do you need a loan? If you got a 30-year fixed loan, unless you lost your job, you should be able to make your payment. Did you obtain an adjustable rate loan or some other type of loan that 'resets'? If so, then you really couldn't afford the home you bought.

The only time 'being underwater' counts is when you're trying to re-finance or sell. If you make your payments, what is the problem?

[jrmarsh]

I've afforded it for five years, they've made plenty of money on interest. To say that it's my fault for getting an adjustable loan is like saying it's your fault for getting an operation that goes bad because the doctor recommended it.

Millions of people were sold adjustables by the "experts", are they bad people to you?

I'm not asking for a modification, to me, a contract is a contract. I just want to stay in my home, the bank will still make plenty of money.

I think people who play by the rules shouldn't be raked over the coals while others get away with big bags of cash.

[jrmarsh]

you see, it's like a double-whammy, not only will i not be able to afford my home, but I'll also get to pay for other people to stay in theirs just because my loan was sold to someone other than Fannie Mae or Freddie Mac.

[Coinyer101]

I guess a moratorium on foreclosures is out of the question, because banks and lenders won't go for it? They would probably win that battle with the support of centrists and bluedogs who are still too beholding to the 'big' people.

[Austrian School]

Why should current 'homeowners' get preferential treatment to current renters who are looking to buy?

[formerprosecutor]

I have begged for a moratorium, until these loan modifications requested can be reviewed by HUD.
There was no remedy for the homeowner upon a denial of modification included in the bill; just a bribe to the lenders.
No teeth in the bill; all of it was voluntary.

With 5 million famlies currently at risk (facing foreclosure within 3 months) we are doomed without more interference.

[Coinyer101]

bummer.....,

[SusanStoHelit]

I think there's more to the story - her, for instance - she says she bought the house for 77,000, has been paying for 12 years on it, took money out twice, about 30,000, and refinanced once. So - how did her loan get to 140,000?

[SusanStoHelit]

20k for roof, figure maybe 13 K for car - there's at least 50k unaccounted for there. She mentions credit card debt - did she spend 50 K on credit cards?

She's been paying on the loan for 12 years - you have to assume she paid down some principal in all that time.

[formerprosecutor]

If someone(s) gave a secretary, taking home 2k a mo) 50K in unsercured credti , they deserve to lose it.

She needs to file chapter 13 and keep her home.

[formerprosecutor]

Try not to rely on new articles as legal facts.

And with all due repsect, why does that make a difference. Ther eis no such criteria in the modifcation program. Unless, you merely want to punish people based on your own personal values.

[Lorianne]

I feel sorry for this woman but she gambled and lost by sucking all the equity out or her home and then some with 2nd mortgages, credit card debt etc .... all this when she had a job.

If she had lived within her means and not sucked bubble equity out of her home she would not be in this situation. (Not picking on her, everyone else was doing it too, but she's the example given in the story).

Yeah, hindsight is 20/20 and everyone else was doing it ... but still ... all this unneccessary debt is how we got in this situation in the first place. We lived well above our means on fantasy money that never existed (bubble equity).

We should not try to reinflate bubble pricing or the whole process will start again.

[BlueZoo]

I have to agree wholeheartedly! "Everybody" was NOT doing it and the majority of homeowners paid their mortgages and other bills because they were living within their means. A lot of responsibility lies on the shoulders of those who did not. In Atlanta, people with NO credit were buying $600K homes and now the chickens have come home to roost! I'm a taxpayer, living within in my means, and I am SO not into helping those who didn't!

[desertman]

Everyone else was Not doing it and had some common sense. Now we are to pay for her foolishness?

[rc42]

siebenstein,do you have a link for the cali plan.im interested to know if it was for all mortgage holders or only people that had mortgages w/countrywide?i believe cali was the first state to start investigating cw for deceptive loan practices and people w/ loans with them were being offered special help.yes now people with cw loans are eligable for help in other states under obamas plan.also if it wasnt obamas plan to start why are you mad at him because you say its not woking.as far as home values go i didnt realize the pres controlls that.why arent you mad at property appraisers who over valued homes so their banker friends could make lots of money and inflate the market or the realtors who knowingly sold people houses that they couldnt afford or people who borrowed every penny to buy their homes.i feel bad that houses are so underwater in cali but people overpaid thinking the market would continue to go up then sell after acouple of years and make quick money they gambled and lost.

[Kolors]

The HuffPost headline is incorrect. Ms. Ulery DOES qualify for Obama's Mortgage Assistance Program.

The NYT article is about banks not willing to modify loans for people like her who DO qualify for loan modifications.

[formerprosecutor]

Exactly, I posted earlier the criteria and "stipends" even more for people that have NOT got behind yet
Everyone ignored my posting

[formerprosecutor]

Here is what the government is offering; and they are ENCOURAGING people that re NOT in default yet to take advanatge of this plan
from an article on the new program:

"When modifying first mortgages, servicers can receive $1,000 up front, and $1,000 per year for three years. If the mortgage being modified is eligible and not yet delinquent, they can also receive $500, for a maximum possible total of $4,500. Then borrowers who make their new payments can get up to $1,000 per year for five years, up to a total of $5,000. This money is paid to the lender or investor who holds the first mortgage, and it reduces the borrower's principle."

[PittsburghFred]

Banks, (particularly now since the taxpayers - under Paulson - gave them staying power with the TARP funds), would rather get the house/condo back, sell it again and write a new mortgage than reduce principal or interest, so they forclose and retain the asset waiting for the market to recover. UNLESS you make it hard and expensive for them to forclose. Google "Mortgage Wars" and get the book by that title to see how to make the banks come to the table and modify your loan. Know that it will take an attorney to pull it off, but it can be done.

[hapiday]

One minute people don't want President Obama in the banks business. They don't want regulation.
But if the banks won't lend the money or refinance your home you start screaming President Obama needs to do something about these banks. Which is it? In or out? The program does need to be tweeked but it can work. I know through people it's already helped. Some of them were able to get loan modifications. Which was through the professionals at the neighborhood assc. They were able to put pressure on the banks.

[Austrian School]

The question you need to ask youself is "why aren't the banks lending?"

That is their business after all....lending out money. So why aren't they right now? Hmmmm.....

[tomsowell]

This is how Socialism Works.....If you investigate into the founders of Acorn,you will find a theory(create a crisis,and disturb the economy..They actually said"you want as many people on Welfare as possible"...anyway...In Socialism all the money gets transferred from the people to Government,and Big Business...in this case Banks,GE,Unions, etc..The government then let you know how much their going to let you have...Put on your helmet..This has to be stopped before it can be reversed,and we don't know how long that will take...The American people are still sleeping,and mesmerized...But just asJapan said "I think we awoke a giant"..when the majority finally figure this out...They will be MAD AS HELL

[hapiday]

Just wanted to give some support to people trying to use the program President Obama's mortgage program. My neighborhood association sent our information in their monthly newsletter in February encouraging people to attend the meetings. Because they had at their access more information dealing with the program.

They encouraged anyone who was having trouble paying their mortgage or were near foreclosure to attend. I attended so that I could see what the program was about which enabled me to let my family and friends know they can't get through the process on their own.

1. People need to operate as a group.
2. Find an organization who is experience in reading and understanding a government program.
3. Find a paralegal or an attorney who may work pro-bono, it's possible believe me they are out there.
4. Neighborhood Assoc. have a vested interest in seeing people keep their homes find any Assc. in your area, don't worry if you are a member. Just go!!!
5. Don't give up, stop whining and complaining because most of the work is going to be your responsibility. You may have not been helped at that time. But, it doesn't mean someone else is not being helped. You can't say the program doesn't work because it wasn't you.
6. Lastly, the newsletter we received a April 36, 2009. 137 people were able to keep their homes. There are still cases pending but the ball is rolling.

[rc42]

i supported the housing bailout but there are people who shouldnt be bailed out.people that refinanced every time their homes value went up and are now underwater should not got help.people who bought when the market was high and are now underwater but can still afford the payments shoulnt get help either.you still have your house and the value will go up .probably not to what you paid for it , but it depends on where you live and how much you overpaid.not everybody will or should quallify for this plan.