Upside Down Mortgage

Posts Tagged ‘government’

Government Mortgage Help For Homeowners

Question: Why doesn't the government just pay off everyone's mortgage?

It would not only bail out the banks but also the homeowners.
Everyone's balance sheet would turn their debt into equity.
The money actually pays off the debt instead of vaporizing into a margin call. The current bailout plan just wipes out $700 billion with little or no benefit and we have to still pay off the mortgage debt.
Real Estate could be sold at reasonable prices and still produce a profit for the owners.
Banks would be flush with cash and the credit markets would be liquid again.
It's time the politicians made an investment in the American people and not just wall street fat cats.
The cost could be amortized over 30 years at the lowest interest rates ever.
The economy would receive a massive injection of capital that would create jobs and spur economic growth.

Don't support the wall street bailout without paying off homeowner debts. It is time for the government to stop rewarding those who created the problem and start investing in the people of this nation.

Answer: Personal responsibility went out the window when we all became victims of a banking system gone wrong. Most of us pay ontime, all the time, but are in the spot now of owing more than homes are worth. Paying off everyone's mortgages would 1) certianly stop foreclosures, 2) allow housing prices to reset to better match our (lower) current income rates (since so many jobs have been shipped overseas) without crippling the existing responsible mortgage payers with depbt beyond their house value, and 3) get the bulk of Americans back in the role of being good, spendy consumers. High holiday retail sales, anyone? But the real question is why isn't anyone putting this on the table? I'd really like to know.

Mortgage Help: Talk is Cheap

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Mortgage Relief Act Of 2008

Question: Does the mortgage debt relief act apply to people who refinanced?

I hear 2 versions of this story. That the canceled debt from my short sale this year will NOT be considered income and others say it will be because a refinanced and made it a recourse loan. My CPA told me it wont be considered income for 2008 tax purposes and I wont be taxed on it? Any feedback from others?

Answer: Hi,
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Vegas PBS Recession Rx May 18, 2008 Part 3

Obama Loan Modification Stimulus

Question: how does Obama's stimulus package help current home owners who have fallen behind on payments?

I have fallen 4 months behind on my mortgage and I am in the process of obtaining a loan modification but the bank is already moving forward with foreclosure procedures, how will President Obama's stimulus plan help me keep my house and return from the foreclosure process?

Answer: If you could not come up with a single payment in four months then any reduction of interest is a moot point as you cannot afford the home you are in. accept that and move on you are just trying to delay the inevitable

Obama Housing Stimulus Plan