vettegirl Posted September 22, 2008 Report Share Posted September 22, 2008 I know the details haven't been ironed out yet, but do you think the government rescue package will help consumers facing or in foreclosure, or only the banks? Link to comment Share on other sites More sharing options...
willingtocope Posted September 22, 2008 Report Share Posted September 22, 2008 Did anyone facing foreclosure donate big bucks to someone's election campaign?In spite of that, my best guess at this point is maybe...inadverently. The government is probably not going to want an inventory of foreclosed houses on their hands. They will probably find a way to sell them back to the very banks they bought them from...at a discount...but that MAY mean that people who have incomes and just got caught with a rate jack MAY be able to rework their loans. Link to comment Share on other sites More sharing options...
jq26 Posted September 22, 2008 Report Share Posted September 22, 2008 What this basically is a repeat of Resolution Trust Corporation from twenty five years ago. They don't want the debt. So they will probably be more willing to work with homeowners as long as they have sufficient income to pay the modified loan. To be sure, the bailouts are not necessarily designed to save any homeowner or group of homeowners. The resuce is to save the financial system from collapse. A collapse of the banking system would be armegeddon on everyone and not just the 2% struggling to make their home payment. Link to comment Share on other sites More sharing options...
firstsource Posted September 22, 2008 Report Share Posted September 22, 2008 I agree, they won't be using the total amount of funds forever, just to make the market liquid again. Let's say that they buy a bad loan for 100 cents on the dollar. Depending on how well the loan is performing, they will sell that loan in the marketplace for between 65 and 90 cents on the dollar. This will probably not help the people that are in a FC or close to it right now, but since most banks will do anything they reasonably can to keep the loan from going to the courthouse to be sold at an auction. You should continue to try to work with the lender/servicer of your loanCharles Link to comment Share on other sites More sharing options...
vettegirl Posted October 5, 2008 Author Report Share Posted October 5, 2008 Now that the legislation has passed, do you think it will be easier to renegotiate through the HOPE for Homeowner's program? Countrywide did get a judgement on 7/29 - I have a 1st with them for $210k and a 2nd with HSBC for $85k, house is probably worth about $220k now, and I have verifiable income of $65k (my salary - my husband has been running a small business on his own since his plant closed about a year ago). Is there anyHOPE for us? Link to comment Share on other sites More sharing options...
deltadawn Posted October 5, 2008 Report Share Posted October 5, 2008 I have mixed feelings about this - and I don't think the financial institutions have concrete direction in how to procede at this time.For example - Your home is valued at $220,000; however, need refinancing for $295,000. With property value declining, what will finance companies require before rewriting the loan.With so many people defaulting, wouldn"t it be prudent to rewrite the loan rather than go through foreclosure costs and possibly lose more money through an auction?IMHO, it would be wise to rewrite the loan at a fixed rate and possible require that some sort of insurance policy be required for the 45,000 deficit in the value of the home. I don't have any answers; however, it would have been nice if there had been some sort of immediate plan for those facing foreclosure. Link to comment Share on other sites More sharing options...
jq26 Posted October 6, 2008 Report Share Posted October 6, 2008 With so many people defaulting, wouldn"t it be prudent to rewrite the loan rather than go through foreclosure costs and possibly lose more money through an auction?IMHO, it would be wise to rewrite the loan at a fixed rate and possible require that some sort of insurance policy be required for the 45,000 deficit in the value of the home.If the bank feels that this would be the best way to cap losses, then they may do it. In this case, Countrywide gets paid first up to the full lien value if they foreclose. Foreclosure is probably the best way for them to protect their investment. To rewrite a loan requires HSBC to agree to take a total loss or it requires Countrywide to subordinate their lien. Neither party would agree to that for good reason. Link to comment Share on other sites More sharing options...
vettegirl Posted October 6, 2008 Author Report Share Posted October 6, 2008 In this case, Countrywide gets paid first up to the full lien value if they foreclose. Foreclosure is probably the best way for them to protect their investment. To rewrite a loan requires HSBC to agree to take a total loss or it requires Countrywide to subordinate their lien. Neither party would agree to that for good reason.Good point. As far as the goverment buying bad mortgages from the banks, are they doing this thru FHA refinancing of the bad loans or buying them outright? And are they worth more in different states of foreclosure than others? Link to comment Share on other sites More sharing options...
BigShotNoMore Posted November 14, 2008 Report Share Posted November 14, 2008 Looks like the recent Countrywide announcement will help you a great deal. I saw your other post. Talk about timely news. Good luck to you. I wish they held my note!! Link to comment Share on other sites More sharing options...
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