Obama housing plan

[rrockinggramma]

there was some talk here about the "cram down" option for Bk judges. Obama supports it BUT ONLY after all other options have been exhausted AND the underwater amount is considered UNSECURED. So not sure how much help this will provide.

In addition, his rescue plan is for CONFORMING loans only. NO jumbo's.

[fltoo]

He is trying to fulfill campaign promises while facing the reality of the situation, now that he is in office.

The news will report his support of loan mods, but, only people who try it will need to abide by the "small print".

I am waiting to see how the news spins his decision to send 20,000 (not sure of the number) troops to Afganistan.

[Flamingo]

HHM did another posting yesterday that it appears the property has to be involved in foreclosure proceedings for anything to be considered.

[kellmaestra]

Hi,

I have been reading news stories about the stimilus package to see what benefits it might contain for people in my situation. I have yet to read anything about people who are in bankruptcy and still struggling with their mortgage.

We filed Chapter 13 in 9/07 due to an increasing mortgage payment, an insane HOA paymen, large car payments for vehicles we were upside down on and arrearages on the mortgage and HOA. Our HSBC ARM mortgage is included in the bankruptcy along with an arrears amount and a small second mortgage also to HSBC. We have made regular payments with the exception of a two month period last summer that was Court-approved.

I am sure the lawyer mentioned that filing bankruptcy would not keep the loan from adjusting every 6 months but I was still surprised by it. Now that we have been in the plan for over a year, we want to refinance to a flat rate loan. HSBC won't deal with us until the bankruptcy is discharged. The finance company the lawyer recommends took our information and said they would call back. I called them again last week and she said they were extremely busy due to the lower interest rates.

Does anyone have a company they recommend? I live in Tennessee if that matters.

[Flamingo]

Hi,

I have been reading news stories about the stimilus package to see what benefits it might contain for people in my situation. I have yet to read anything about people who are in bankruptcy and still struggling with their mortgage.

We filed Chapter 13 in 9/07 due to an increasing mortgage payment, an insane HOA paymen, large car payments for vehicles we were upside down on and arrearages on the mortgage and HOA. Our HSBC ARM mortgage is included in the bankruptcy along with an arrears amount and a small second mortgage also to HSBC. We have made regular payments with the exception of a two month period last summer that was Court-approved.

I am sure the lawyer mentioned that filing bankruptcy would not keep the loan from adjusting every 6 months but I was still surprised by it. Now that we have been in the plan for over a year, we want to refinance to a flat rate loan. HSBC won't deal with us until the bankruptcy is discharged. The finance company the lawyer recommends took our information and said they would call back. I called them again last week and she said they were extremely busy due to the lower interest rates.

Does anyone have a company they recommend? I live in Tennessee if that matters.

Your attorney should have more information soon as all this starts to pan out - from what I have seen so far posted on here and in the news, the property has to be in foreclosure proceedings but someone else just posted some other information. So as all this clears up, in a few days you may have a better picture as to your situation. Your lawyer is a great source for broker information for those involved in a Chapter 13 as he/she has probably assisted others in refinancing to buy out or refinance during their Plan. Yes I am sure all mortgage lenders are busy now so you may have to wait a bit to see what options may be available for you. If you PM me, I will supply you with the name of the mortgage lender through which we refinanced in 2006. Our attorney supplied us with the broker and information and while it takes a while to get approved and go through, they did a great job for a lower fixed rate and our broker at that time guided us away from the ARMs as I believe he knew/sensed what was on the horizon as to subprime mortgages. Note - you will probably have to deal with PMI since you are in Chapter 13 or just having the BK on your records, requiring funds up front and monthly payments for 5 years included in your mortgage payments for a FHA mortgage no matter what your equity.

[screwedupbyRE]

here's the fact sheet: http://www.centralvalleybusinesstime.../FactSheet.pdf

[HHM]

The stimulus that just passed has nothing for existing homeowners.

The Homeowner Stability plan is the one that "may" provide help. The Bankruptcy aspect of that has cleared one hurdle, the "House" version has just come out of committee (I will see if I can track down the text), the Senate version is still in committee.

Frankly, the language and programs I see aren't that much different than what was proposed under the Bush administration.

[Overmylimit]

In the end I'm not sure its going to help people in BK as much as we would like. My attorney had me wait it out to see how this went before I filed, he's all paid and ready to go but he thought something good might come of it. I read thru it and it reads like stereo instructions...

[kellmaestra]

If you PM me, I will supply you with the name of the mortgage lender through which we refinanced in 2006.


How do I PM you? I don't see a button for that.

[Flamingo]

If you PM me, I will supply you with the name of the mortgage lender through which we refinanced in 2006.


How do I PM you? I don't see a button for that.

:-) Go up to the top right of this page and you will see your ID and a "Private Message" link. Click on that and it will take you to that area of your account. I will "PM" you with the information...

[blindsided]

In the end I'm not sure its going to help people in BK as much as we would like.

Yeah, my takeaway is that this is an "avoiding bankruptcy" program. There doesn't seem to be anything in what's announced that pertains to BK except for the cramdown legislation, which is really separate. (It's believed that Obama may implement much of the plan announced this week without involving Congress.)

We have a complicated lien situation on one of our rentals so we're hoping for a strip or something, but my parents' house is right on the cusp of maybe being eligible for a cramdown. We'll have to have an appraisal for both of those. The plan as announced seems designed to make people like my parents ineligible because if you count rental income the HELOC is well below the threshold. The amount that they've struggled really doesn't make them fit the "speculator" mold that the plan is designed to exclude, but nevertheless it has no relief for them. I hope the CH 13 does.

[fltoo]

Yup, this eliminates most of the people in Cali.

I almost think that, although it would have been a financially hard pill to swallow initially, all underwater mortgages should just be crammed down and banks forced to refi all loans to fixed, low rates to completely stop foreclosure. Those in financial trouble after their mortgage is adjusted would still have the option of BK or foreclosure.

Although not the best solution, the ramifications of doing this would probably be better than the confusion that lies ahead. Might as well rip off the bandage and start healing.
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In addition, his rescue plan is for CONFORMING loans only. NO jumbo's

[krielly]

Yup. 4% fixed mortgage rate adjustment across the board for everyone!!!!!!!!!!!!!!!!!!!!!

Hey, a girl can dream, right????????

Just imagine!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!