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

[ReconDog]

There is absolutely no authority in the constitution for the federal government to "bailout" anyone--neither businesses nor individuals. Why should I have to subsidize other people's foolish decisions? Let them carry the weight of their own stupidity.

[formerprosecutor]

I have to cite this every once and a while:
Section 8, Clause 1, Powers of Congress-Taxation.

...and to provide for the Common Defence, and general Welfare of the United States,..."
The General Welfare clause is what give Congress the power; and of course the Commerce Clause

[JaneQCitizen]

Because if you don't, you'll have a lot of angry, hungry, homeless people roaming YOUR street.

[formerprosecutor]

Here in Mid Mo, we have had a sharp increase in fatal, domestic violence
and burglary, and bold robberies

It will get worse.

Without roots, without being a stakeholder in society, people revert to survival mode.

Housewives will be shoplifting out of neccessity. Poverty makes criminals, itreally is that simple
if the world doesn't care about you, why should you care about the world.

[ReconDog]

Sorry... you're wrong. But I guess as a former government employee, you know a tax eater, you've been properly indoctrinated to believe that "general welfare" had the same meaning in 1789 as it has now.
I direct you to James Madison and Thomas Jefferson...the author's of the consitution:

"If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one, subject to particular exceptions." - James Madison, 1792

“The Constitution allows only the means which are ‘necessary,’ not those which are merely ‘convenient,’ for effecting the enumerated powers. If such a latitude of construction be allowed to this phrase as to give any non-enumerated power, it will go to every one, for there is not one which ingenuity may not torture into a convenience in some instance or other, to some one of so long a list of enumerated powers. It would swallow up all the delegated powers, and reduce the whole to one power, as before observed" - Thomas Jefferson, 1791

"Congress has not unlimited powers to provide for the general welfare, but only those specifically enumerated." - Thomas Jefferson, 1798

[Austrian School]

Reality: If you can't afford your home payment, you are going to lose your house. The government will not help you. If your underwater, maybe the best thing to do is to walk away. If not, then you better sell NOW. Because prices are going nowhere but down.

[formerprosecutor]

and live where? in your car??

[Austrian School]

dude, you ask some random questions. No, i live in a townhouse that i rent. What's your point?

[BurtonOerney]

Oh my gosh. This lady - and I guess the millions like her the article mentions - are fine right now. She's got good credit and options. There are also millions of people who are much closer to having the sheriff at their door and their stuff on the sidewalk than she is. To get government assistance, you fill out triage forms that determine first your eligibility, then your need and its urgency. Government programs try to help the neediest first.

I hope the government is able to keep pressure on banks to change their currently 100% sales driven mortgage departments so that they are capable of handling interest reductions. That's not at all certain but that so many people declare the program a failure, a disgrace or a heist really surprises me.

[formerprosecutor]

Just so some of you know why I think this is so important; the BIG picture: I amreposting this
People need to keep the "top thought" in their thinking on this subject.
This isn't about who is "worthy and who isn't"

The PUBLIC, our society, has a huge , critical interest to keep people in thier homes.

Let's just imagine , if the 5 million familes (not just individuals) that are currently thought to be at risk of foreclosure, lose their homes, where will they go?
Apartmenst? are there enough affordable aprtments? can you get an aprtement with bad credit?
if you have money for fist and last and deposits, couldn't you catch up your mortgage? can you get an apartment without being employed?
Do we have enough foster care families for the children that will go into foster care? How will we pay $700 to$900 a month PERchild to foster familes for their care?
How will we reunite families? How will this affect the nature of our society? Will poeple turn to crime?
Who will buy all those houses? What about the tax bases? Will the bank [pay the county and state propertytaxes on these houses as they sit empty? If not, how will the counties survive?
Who will buy the goods that are on the market?
Will the abscence of 5 million families in themarketplace impact more jobs?
How many ripples can YOU count each time the rock of foreclosure is thrown into ouir economic pond?

[GypsyRose]

Aside from your spelling (tee-hee), you make some valid points.

However, "the PUBLIC, our society," can change their minds in a New York minute. Too many examples to post right now, but I think you know.

NOW is the time to buy!

[formerprosecutor]

It is not the "PUBLIC" as in a public "liking" something; it is the "Public" as in the "whole" and what benefits the whole, not for the minute, but for the long term, and where we want to go , with our future and our place in the world. And what we enviosn our society to "be"; and what values we embrace.


and I apologize for my age and impairments; all of my shortcomings

[patriotparty1]

Come on! Did you really think there would be help for anyone? This is just like the "trigger" Obama is going to OK congress placing in the health care bill that will kick in to opt for public health care. Only problem is, no one will be able to qualify for the "trigger". All that will happen is that the people who DID have good health care through their employer will NO LONGER have it. When we are all surfs bowing at his feet to PLEASE give me a handout will The One be happy. He will raise his chin and stick that nose in the air as is his favorite pose, and with those kind eyes look down on us and tell us he is here to help and HOPE AND CHANGE are coming. Just stay down there are wait for it.
When will you all learn that it does not matter who it is. Old man Bush, Clinton, Bush Jr., Obama, all the same, all puppets of the Fed and the one world owners who are driving this country to submission so they can own it. The money comes from us, NOT TO THE GOVERNMENT, but to the Fed who then LENDS the money back to the government. All of our own money is being used to transfer the wealth from us to them. Come on people, wake up and smell the sell out!

[shamroc02]

Obama told you people this plan wasn't going to help everyone. Some of you have selective hearing. And for some of the lazy/greedy Americas who got homes they knew they couldn't afford....I say oh well. Join the real world, if you cant make the payments...you lose your home. Its been like that since the beggining of time.

While there are people that this plan doesn't help...there are just as many that it will help.

[OGSal]

Nowadays, whether you get selected for "Home Makeover" or a loan modification - your situation has to be dire for a "believeable" story. When I see or know folks who received a sub-prime or "no money down" loans, KNOWING they were currently or futuristically unable to sustain & then say... "I was tricked" & so on - it's kinda maddening!
After single parenting 2/children to adulthood - all aone - sold my house in a good market - bought the townhouse of my "dreams" w/a 30yr fixed. It closed at $258K... I owe $200K, in April was worth $161K, today its worth $139K - and little did I know I'd be faced w/walls & a ceiling that have "cracked" (researched the Builder's product). I still work - HARD - everyday with a "cut" in pay. So, I say to my mortgage company... hey I still owe you the $200K... but my living expenses have exceeded what I make & yes I've cut EVERYTHING down or OUT - but want a tiny $200-$300 dollar break to cover HOA! They said they haven't FIGURED OUT how to help homeowners "current" on their mortgages - so they sent me to the "deliquent loan" dept. & said we haven't figured out what to do with the new plan! I am "hanging-in-there though"! Any sympathy for me!?!

[formerprosecutor]

tons from me.

what did you do "wrong"? nothing

stuff happened; that is what I have been trying to get people to understand, that circumstances don't make somebody a "bad person"

though I will say; that nobody I have had , pro bono, has ever made mor ethan 50k a year and theri homes are all under 100 K; the lenders do not care what your problem is, they just want their money; no sob story will away their course, so judging circunmstances doesn't make any difference (as you found out)

[SusanStoHelit]

Depends. How much sympathy do you have for the people who are in your situation, but even worse, who have not been able to find the money to make their payments and are just about to lose their home without help?

How is it wrong that the banks are saying they are working on helping the people in the worst shape first? The ones who are closest to losing their homes?

[p-r0d]

I spoke with a BOA mortgage loan officer. The first phase of the plan was primarily for first time home buyers who went through Fannie Mae or Freddie Mac. I was told that Phase 2 of the Making Homes Affordable Plan/Act starts on June 10 and is designed for first time home owners who went through another FHA loan (other than Fannie or Freddie).

[formerprosecutor]

no word for conventional loans? all my clients have conventional loans

[clarenoi]

I'm in exactly the same situation as this woman. I am now robbing Peter to pay Peter. I have a credit rating of 799 so Bank of America offers me 2.99% on one of my credit cards for a 6 months. So I wrote a check against that credit card, dropped it in my checking account so that I can pay my BANK OF AMERICA mortgage for the next three months.

unbelievable

[bygollymissmolly]

Unfortunately for you when the six months are up B of A will up the interest rate on your credit card to 30% and then you will be in BIG trouble.

[formerprosecutor]

yup or more
the the late charges will start and the (now 45 day notice) of your lower credit limit and then the over limit fees
and the nightmare begins

[vooter]

"B of A will up the interest rate on your credit card to 30% and then you will be in BIG trouble."

Not if she tells B of A that she's not going to pay them a cent, she won't. The United States needs a debt revolt, and mark my words--it's going to happen. Companies write off bad investments all the time, with no penalty. It's time for individuals to do the same. Personal responsibility? LOL...I call it self-defense. DESTROY THE BANKS.

[GypsyRose]

Get out of that bank, now! Go to a credit union or a local savings bank in your city. Ok?

The good news is, you still have your sense of humor. :)

[JaneQCitizen]

Can't. The house is worth less than what is owed on it. No credit union worth its salt will lend in that situation. The only bank willing to re-fi is the bank that holds our mortgage.

The re-fi package costs $6,000 and a $500 nonrefundable fee. Uh huh. Kiss my you know what.

[jelly450]

If your checking account is with Bank of America, you better not get behind because they can and will
debt your checking account without your permission.

[formerprosecutor]

yep they will!! almost all banks will

[dmann32]

The problem with this one and Dick Durbin so eloquently put it: "The Banks Own the Place(Congress)!" A real Bill with teeth would not have made through the senate. It's the one problem I have with Obama's compromise . . . at times he's so damned non-confrontational when he needs to be! Always looking for this middle ground when all these banks and execs hold allegiance to is protecting their MARGIN of profit! I'm a bit frustrated with this one! People who do the right thing get no help. They have to have their FICO score take a hit, which could take a decade or more to reverse, before they even qualify . . . and even then they STILL may not get it. I guess he's not trying to pick a fight but . . . sometimes a foot needs to get put to @$$ for the greater good!!! Pop those baby teeth out and really start biting these greedy SOB's!!!

[Janet Wolfbauer]

Started looking up the housing sites where a home could be found. NO BROKER would help me put in a bid because I did not have CASH! I emailed HUD over 30 times trying to find a realtor to help me. Of course they did not help me. I month ago an agent in Genesee County, MI contacted me and asked me to call her. I did, with reserve. I told her my position and she said lets start looking. I had already looked at over a 100 houses and they all should have been TORN DOWN! After looking for a week, she said lets keep looking we will find something. A week later I found a house that could actually be moved into! The following day I found a house in a better place of the city. The offer was $16,000, we offered $16,500 and won the bid. Now comes the hard part. You have to find a bank, a loan officer who will give you a loan. I had been told the banks don't lend to anyone if it is not over $30,000! I have put in over $1,300 for inspectors, apprasiers, ect., I was told if the loan does not go through I will lose everything. HUD says only a person who lives in the house can get it - but, only INVESTORS who have CASH can purchase! Laying in wait for interests to go sky high again leaving this country in the same or worse condition!

[formerprosecutor]

I h ate it when peopel do a post mortem on my actions but (and I am sorry for this) but you should have got preapproval.
or had a loan officer look at the property with you before auction
or got a LOC from abank befor ebidding
at this last minute I would approach local BANKS, community banks and credit unions (though I understand most credit unions require you to allready own the home for a loan on it)
perhaps you can get a local bank to make a personal loan secured by real esatate (much different than a mortgage)
it will be short term; like 5 years, but at that dollar amount it should work for you.

[formerprosecutor]

and if oyu find a loan officer that will even listen; ask himn to come LOOK at the property; tell him your plans, ask him to invest in YOU
that is how it was doen in the old days before the crooked credit bureaus
they invested in people and theri work ethic not numbers from a far way invisible place

[vooter]

I don't know why everyone thinks the banks are going to simply give away all the money they stole from the U.S. Treasury. LOL! If you don't understand that the bailouts were nothing more than the biggest heist in world history, then you've got some disappointment coming your way.

[kutkreata]

I tried to follow President Obama's advice & refinance, but the problem that I'm having is that so many people are trying to refinance now, that it's hard for those of us with good credit to even get called back by the mortgage companies. I spent a 2 weeks calling companies, two weeks waiting for them to finally call me back, and a month watching the rates. When I finally found a company I liked & the rate was good, I signed all of the paper work. Then the lady told me on my closing day that so many people were trying to refinance, that they didn't get the paperwork in on time to lock down my rate. So now I'm back to square one. Other people I know went through similar situations. I'm like what?

[formerprosecutor]

another example of de-regulation. They should have been held to the quote on the day they commited to the mortgage.
right now, the lenders are on their honor to do that.

[GypsyRose]

Yes, commitment, that's how it's supposed to work.

[Ohming]

Unfortunately, your story has fell on my ears from others recently.

[bygollymissmolly]

I refinanced my mortgage last month at 4.5%. The only problem I had was that it took over 30 days to complete the loan whereas in the past, it took only 10 days. If you have good credit, try calling Ditech. That's where I got my loan. They will lock in the interest rate the day you call them and handle most everything other than the final signing through e-mail.

[Ohming]

Thank You Mom & Dad,

Thank you for handme down clothes, saying no to movie money untill I earned it by mowing the lawn. Thank you for letting me walk 3 miles to my first job at 14, and save enough money to buy my first car. Thank you for letting me live at home while going to a state college and graduating debt free, being firm and disciplining me when I needed it. Thank you for forcing me to buy birthday cards and right thank you cards. I know what is imprtant in life now. And beacause of your lessons I am debt free and can concentrate on what is important.

"I dont miss the things that I never had. Every physical thing becomes obsolete, our family is the only thing permanent.

[kutkreata]

co-sign

[speedingpullet]

Ditto

[Tkevan]

You're preaching to the wrong crowd. This is the site of Government handouts, and 'what have you done for me lately'.

[Ohming]

I just can't help it, my glass was born half full. But you are probobly right.

[M1]

Not every person grew up with a mom and dad who gave them anything....let alone a house to live in while they saved. Give me a break.

[formerprosecutor]

they are in one world and my clients live in another

[JaneQCitizen]

Oh brother. Did your self-righteous pat on the back feel good?

Talk to me when you're laid off from your job - due to a tanked economy through no fault of your own.

THEN, find out that you can't sell your house because you owe more on it than what it's worth -- in a housing market tanked through no fault of your own.

There are a lot of out here that did everything right. Saved, put 20% down, had savings in the bank. Yet we're on the brink of homelessness.

[synic]

You were lucky you had a house. Many of us didn't. You were lucky you had parents that could afford to supplement your education instead of being forced to eek out a sub-life week to week because of circumstances beyond their control; an existence full of worrying about whether you could pay the phone bill or feed your three kids. Concerned whether you would be evicted because the rent fell three days before you were paid and the landlord was a jerk. Absolutely terrified the wreck you were nursing to get you to and from your low-paying no-benefits POS job wouldn't start in the morning. We had hand me downs, shopped in mission stores where shirts could be had for a dime and three dollars could buy a school wardrobe. We even went to rich neighborhoods on trash night in hopes of scoring treasure. We were debt free and took no free government handouts even though we were more than entitled.

Besides thanking your parents, thank your lucky stars that your life was blessed without tragedy or circumstances that no one can truly plan for. As someone who has been to the bottom and the top of the economic food chain and everywhere in between I'm always amazed how often people fail to take the uncertainties of life into consideration when judging others as lacking in good sense or discipline or heralding their own good sense and discipline. The view is different when walking in another's shoes.

[bygollymissmolly]

This whole mortgage crisis happened as they intended it to happen. When the teaser rates of 4.5% became due and the banks/mortgage companies raised the rates to 12%, 15% and in some cases 20%, they knew that the homeowner would not be able to make the mortgage payment. If they had raised the rate to the current 6% or even 7%, most would have been able to handle that increase. But when your mortgage doubles or in some case tipples, very few people can handle that kind of increase.

The banks knew the government would bail them out. In the meantime, they ended up with a lot of very cheap properties that they sold to investors who will make a very tidy profit when the economy recovers.

That is why I would have rather seen the government let the banks/mortgage companies fail and to use the money to buy the mortgages of distressed homeowners, then refinance at a rate they could afford. That would have cost us less and done more to help our economy than giving our taxpayer money to banks like B of A, who still refuse to help distressed homeowners.

[formerprosecutor]

I have a client, college educated, government employee, that only knew he had a INTEREST only second mortgage, after I talked to the mortgage company.

They insisted on a direct pay from his bank account; and he could never keep his account balanced

then we found out that not only was it interest only but variable rate.

he now owes MORE than the original balance because he is charged a annual service fee and an account manitenence fee.

He took it off auto pay , so he could receive statements and they penalized him 1k for doing that.
This was all "hidden" in a 2 inch thick first mortgage agreement

Prime example of deregulation : that was WF, of course

[Tkevan]

If his loan was backed by Freddie or Fannie, you can blame Barney Frank, Maxine Waters, et al. for the lack of oversight.

[GypsyRose]

How does one define a "distressed" homeowner? Seriously, I don't know the answer to that question. Do we review their spending habits over the last 5 years or so? Then, who becomes the judge and/or jury?

Just curious.

[formerprosecutor]

HUD bases their criterai on the FUTURE not the past. Can you pay for this mortgage in the future.

That is why we have credit counseling and why ARM are the downfall of many a homebuyer
you cannot TELL if you can afford that home 5 years from now.

[patriotparty1]

Gee, I think that is what Hillary said she would do. A 90 day stop on foreclosures, and establish a federal bank to dump the bad loans in to clear the banks books and work with the homeowners on saving the loan. She had great detail of the plan on her website, but I realize she was only offering facts, not hope and change.

How is that working for all of you? To the lady that was crying on TV (one of the many) that now she would be OK because BHO had been elected and now she would have a car, with a full tank of gas, and her rent would be paid and food on the table. Are you still waiting?

[tomsowell]

off topic question for left..you guys know about this,I dont..If we go to Universal Health Care can we purchase addition care on the side

[Tkevan]

From who? Do you think the Government will allow private ins. to compete with them?? Not a chance, even though the Canadian system, the one every lefty loves to champion, has 30% of the national heathcare provided by private health system. So, they pay for the public (yes, you pay based on income), then pay for private care to keep from languishing on the wait list.

[RTIII]

Yes, you can - or, rather, will.
.