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

[swan1]

Two points: First Obama does not make the law, Congress does. Next, most ppl want a handout for buying what they couldn't afford. Millions have refinanced and don't expect a freebie. Not everyone is to be a homeowner, whatever happened to renting what you can afford. Stop blaming the government for all of your problems. For every person behind on their mortgage, there are 10 that are not.

[BabblingBrooks]

Bush didn't make the laws he got blamed for, Congress did!

I know you would wish to be coherent and fair about it.

[AnnfromCA]

Millions have not refinanced. What world do you live in?

[nichtviel]

You must give Obama credit. He is a great salesman. He sold the American public on a mortgage bailout plan that does nearly nothing. His next sales job will be putting a kind face on the psychotic Amanajahad , Kim and Chavez. He'll get you feeling so good about them, he'll convince you it's no problem if they obtain nukes -get ready for that.

[AnnfromCA]

He was given the benefit of the doubt. However, people do expect results. The more he announces new "programs" that don't really work, the less credible he'll be.

He reminds me of training managers who always pretend the next management seminar is going to turn around the company.

[BabblingBrooks]

Not salesman! Hes a CON MAN!

[silverslipper]

How's the hope of "Yes we can" working out for everybody? And pretty soon it's going to get even worse.

[Spiderxx1]

Pretty good. There are many people benefiting from President Obamas programs. If you have 10% unemployment you have 90% employment. When it's all said and done, President Obama will have a very successful two terms, and we all will benefit, even you haters.

[silverslipper]

Why didn't we have that positive attitude when President Bush was president? And I'm not a hater by the way. Quite the opposite.

[didntvote4thedude]

Time to switch from melot to some of that Obama kool aid. It will help you through your tough times.

[FrankenPC]

I'm one of those people. I've exhausted my retirement, my savings and am living from paycheck to paycheck. One bump in the road and I'm toast. I've tried everything to make it work. But, I'm stuck in "I couldn't sell my home to save my life" land.

So, my only option? If it comes down to it, I don't pay my mortgage for a few months, then make late payments indefinitely. My credit rating destroyed.

[SonofSolomon]

Sorry to hear about your situation. I hope things get better for you.

[FrankenPC]

Thanks! I'm sure they will. Like everyone else, I'm keeping the faith that the economy will get better in a few years.

[learntofly]

Sorry to hear that, Franken. Keep talking to your bank. I used to work for one in mortgage and commercial lending. They do not want their loans going into foreclosure - They lose a WHOLE lot of money on them at that point. It would be in their best interest, and they should be very motivated to work with people to change some terms to make it work. Or, If your particular original mortgage contract does not allow it to be amended, they still should be motivated to help you work out a refinance at decent rate. Hope things ease up for you soon! :-)

[FrankenPC]

Thanks.

Unfortunately, the banks will only work with you after you demonstrate an inability to make the payments. They don't care that you are building up to that. The banks need to think about what's going to happen in the future. Lack of foresight is what got us in this position in the first place.

BTW, I don't have a neg-am adjustable. I'm not a stupid investor. I also only own one home. This home was well within my means until the sub prime crisis killed my property value and, consequently, killed my ability to run a line of credit. I didn't "bank" on others killing my setup.

[edmond dantes]

Another Obama disappointment. On virtually all of the most important issues (war, bank bailout, fixing New Orleans, investigating war crimes, government transparency, Constitutional rights, and now health care and mortgage relief), he is selling out. The man is a joke. We NEED a 3rd party or we can kiss peace and prosperity goodbye forever. The Dems have proven to be unwilling and/or incapable.

[tomsowell]

What part of "Spreading the Wealth" did you not get...If you work (no help)....U­niversal Health Care will destroy this country anyway....­The Democrats have done this as long as I can remember(The help that never comes)...T­he Republicans tell you the truth (Its impossible for any Government official to help per Se)...In order for the poor and middle class to advance..W­e have to create wealth(Moving money around is not wealth creating).­..The Obama policies (If carried out) always work opposite of their intentions­...I know how you feel..I'm a Conservati­ve..I believe in LOW TAXES,Free Markets,Self Responsibility,and Freedom Of the Individual (so this is just as painful to me)

[sueinmn]

We havent had capitolism. We have had corporatism which does not work! I could find middle ground with you BUT the country is run by corporate control and corrupt politicians. The thing I disagree with your party most is taking care of the citizens. We need social programs and your party does not believe in them. Our employees do not allow for retirement programs and healthcare and with wages getting ever so low, we need to support basic human rights to survive. Your party just chooses to turn its head on people and call it free markets and capitolism. It has been that in name but it has not been that in reality. Corporate control, no oversight or regulation and allowing tax havens to hide wealth or offshoring to avoid wages is wrong!

[edmond dantes]

Tom, I appreciate your perspective, but I have to disagree.

1. "Republicans tell you the truth" -- I'm not even sure where to start on this one, so I'll just name a few counter-examples: (a) Niger/yellowcake; (b) "We do not torture"; (c) practically every word uttered by Rove and Cheney.

2. The US experienced some of its greatest wealth creation during the 25 years following WWII due to a social safety net that encouraged risk-taking and considerable regulation which ensured stability.

3. "Universal health care will destroy this country" - actually, non-universal health care is already destroying our country. Universal care (preferably single payer) will absolutely help.

[FrankenPC]

I've got really bad news about your reality. There is no wealth. The true cost of our reality is being taken from other places and we are running out of places to take from.

Ever wonder why a radio only costs a few bucks?

Watch: http://www.storyofstuff.com/

This video changed me and my families lives.

[FrankenPC]

OOPS! Sorry Tomsowell. My post was meant for edmond.

[PhilipTaylor]

Remember 9 months ago TARP was sold to Congress to bailout the Homeowners who were suckered into "Sure Fail Trick&Trap" mortgages.

9 Months have past and the Big Banks have $12.8 Trillion in Welfare and Near $ZERO to the homeowners who were victimized by the Big Banks!

Who owns Washington - Big Banks and its TOOL the FED!

[landstar]

"Victimized by Big Banks"??? Oh, c'mon! how about personal responsibility?

[JOHNROGER909]

Of course Obama is owned by the banks. He's a politician. "Change" was simply a cool marketing scheme. You can't get to Washington without selling your soul.

[learntofly]

Really - Who wasn't 'teetering' with their personal finances when the economy took a nosedive?

I don't think it's the government's responsibility to bail out every body's bad financial planning. A 60+ retiree entering into a long term contract for an ARM from Countrywide, now with Bank of America - You could easily predict a person in this situation would be unhappy and paying interest and fees till the cows come home.

[Donkslayer]

You're right...le­t's not help the people that are trying to make it work, who aren't neglecting or unable to make their payments quite yet...let'­s just help the losers who really had no hope in making their payments, who are as at-fault for their situation as the banks are.

[learntofly]

So, you'd like to allocate billions more to help people that already are making their payments?

[JaneQCitizen]

Citibank is doing the same thing.

Instead of restructuring existing mortgages for teetering homeowners, they're selling a re-fi costing $6,000 (that they'll happily put on a credit card for you) and a NONREFUNDABLE $500 "application fee".

[sueinmn]

And these banks just keep pushing credit card debt down our throats!

[SonofSolomon]

I guess they figure why refinace for those who are stuggeling to make the payment because they're still coming up with the money. I've found that smaller local banks and credit unions deal much more fairly with people than these large national banks.

[madfigs]

She doesn't qualify because she's underwater.
Her original mortgage was 77k, which she ballooned up to nearly double that, 143k, through home equity loans and refinancing, and now her house is only worth 122k market value.
Had she not used her home equity to buy a new car and pay off credit card debt, she would owe no more than 77k when her house is worth 122k, and if she was still having trouble paying her mortgage, she would qualify for the plan.
Obama's plan was NEVER supposed to subsidize new cars and shopping sprees for people, I'm sorry.

[KrystynM]

Ummm, funny, I can refinance and lower my monthly payments. Why is that not an option for this woman? Because she wants a HANDOUT, not assistance. This article actually proves that the plan Obama offered was not socialism.

This woman wants a new loan. Well thats not being offered right now. What being offered to help her is a refinance, where she could save money NOW. Yes, there are fees that are rolled in and she may have to extend back to 30 yrs in term...but um, don't you need help NOW? Otherwise, just foreclose.

What the heck is wrong with people.

[learntofly]

Exactly - Nicely said.

I don't think this woman has any idea of the basics of financial planning. The article also seems to be stirring the pot for people who are not informed. She does want a handout to cover her bad financial decisions, and thinks it is owed to her.

[kathy001]

In the first place, under the terms the bank is offering her, she would not save money. She would have to come up with thousands in cash up-front and that's the reason her payments would be lower. But she would also have to come up with several thousand for the bank's fees, money she'll never get back. And her interest rate would go up. Just because her payments would go down - less than $100 a month, btw - doesn't mean she'd be saving money.

I'm not saying this woman didn't make mistakes but she did the same thing many people did because they were advised to do so. Interest on home equity loans are tax deductible, so using them to buy a car and make home repairs was a sensible thing.

She was doing fine until she lost her job as a result of the economic crash. She's not just some deadbeat who bought more house than she could afford. She made some responsible decisions and some risky ones but she would have been fine if the economy had not trashed her job.

What the bank offered her was a complete rip-off - the kind of deal you'd expect to get if you were doing business with Harry the Loan Shark down on the corner of 3rd and Nowhere.

[gigical]

If YOU can refinance and lower YOUR monthly payments, then YOU must be employed, and unlike this middle age unemployed woman, YOU still have your youth and arrogant cockiness to keep you in the corporate workplace. Wait another 20 years and you'll see what you're up against. This woman does not want a new loan, she wants her existing loan 'modified' at a lower rate. She cannot 'refinance' because she doesn't have a job to qualify for it. Foreclosure wrecks your credit rating and puts you out on the street and homeless, BTW. This woman does not deserve that.

What the heck is wrong with you insensitive 'holier than thou' people.

[Kolors]

Hey wait a minute! The article portrays this woman as a victim because she lost her job. But when she refinanced her mortgage to pay off (presumably large) credit card bills and "settle into a 30-year, fixed-rate loan" at the age of 50- or 60-something, did she really expect to be employed for 30 more years?

[sueinmn]

No typically you expect to be able to sell it at some point when you retire!

[Kip Anderson]

The number one problem for most people in Ms. Ulrey's position is that they are playing by a set of rules based in ethical behavior against thieves.

Negative equity is power to negotiate people!

[slowhand0728]

But there is plenty of Money to bail out the Banks, Freddie and Fannie (which I love that no one talks about any more) AIG, the Union filled Auto companies and so on.... Not right Stimulous, REAL Stimulous should have gone directly to the tax payers in the first place.