Obama's new "forclosure fix" plan

Can someone please explain to me how this really, truely helps an average person? I really am trying hard to understand it, but I see the benifits being mostly for the banks to get aid.

Link to plan

I think I find this part most confusing and disturbing:
"The administration is loosening refinancing restrictions for many borrowers and providing incentives for lenders in hopes that the two sides will work together to modify loans. But no one is required to participate. The biggest players in the mortgage industry temporarily had halted foreclosures in advance of Obama's plan.

Complicating matters, investors in complex mortgage-linked securities, who make money based on interest payments, could still balk, especially those who hold second mortgages or home equity loans. Their approval would be needed to prevent many foreclosures.
It seems to offer little help to borrowers whose loan exceeds their property value by more than 5 percent," he said, noting that that requirement would limit the plan's success in some of the hardest-hit areas in California, Florida, Nevada and Arizona and parts of the East Coast."

IDK, the way I see it, all it is doing is giving $$ to banks so that they will refinance loans to make payments more affordable. But how does that help someone 100K flipped on their house? I doubt the bank will finance more than the homes value - right?




ETA -
Ladies and gents:

I made this post so we can have an educated discussion on the propsed plan and voice our opinions and concerns about the plan. PLEASE lets refrain from calling people lazy, morons, irresponsibe, etc.... As this can be the case with some, it is not the case with all, and God bless if the economy hasent effected you terribly, but keep in mind there are others out there who have lost their businesses due to the economy, and in turn are now struggling with their mortgages and other bills.

I understand some of the "harsher" feelings out there, and am sure we would all love to hear everyones opinions, but please just lets keep the aforementioned in mind and keep it "clean"

Message edited 2/20/2009 3:57:04 PM.

Re: Obama's new "forclosure fix" plan

i honestly don't get it but I noticed there is a freeze on foreclosures this month (no new listings) and a slow down on short sales so I am waiting to see how this pans out in the next 4 months.

I tried to read the plan and my brain does not understand it at all so if i was having a problem with keeping current on my mortgage I would go to the bank and ask them. The bank will never refinance more then what your house is worth. If you added some work that raises the value of the home they may review that but I think if your in the foreclosure situation they just want what is owed to them now.

Re: Obama's new "forclosure fix" plan

I think the way things are going, it is almost better to behind on your mortgage than be struggling to pay each month

Re: Obama's new "forclosure fix" plan

I just want to know where is my "reward" for doing my research, understanding the terms of my mortgage and paying on time each month. It just doesn't seem fair sometimes that when you play by the rules you get screwed

Re: Obama's new "forclosure fix" plan

Posted by longford73

I just want to know where is my "reward" for doing my research, understanding the terms of my mortgage and paying on time each month. It just doesn't seem fair sometimes that when you play by the rules you get screwed

Re: Obama's new "forclosure fix" plan

Posted by ilt1221

Posted by longford73

I just want to know where is my "reward" for doing my research, understanding the terms of my mortgage and paying on time each month. It just doesn't seem fair sometimes that when you play by the rules you get screwed

A lot of people feels this way and realize this plan is not for the average american at all.

Re: Obama's new "forclosure fix" plan

Posted by longford73

I just want to know where is my "reward" for doing my research, understanding the terms of my mortgage and paying on time each month. It just doesn't seem fair sometimes that when you play by the rules you get screwed

Re: Obama's new "forclosure fix" plan

Posted by MrsFab

Posted by longford73

I just want to know where is my "reward" for doing my research, understanding the terms of my mortgage and paying on time each month. It just doesn't seem fair sometimes that when you play by the rules you get screwed

yea it does suck that you do the right thing and you dont get anything extra. BUT many banks gave mortgages to people who never should have been granted such high amounts- and yes a certain amount of the fault should fall on the borrower, but the banks did it out of greed and thats why the government is bailing consumers out.

Re: Obama's new "forclosure fix" plan

It's looks that way because it is. It's not for the average person. Obama is only interested in helping "poor folks" as in people who took out loans they couldn't afford in the first place... His beliefs as displayed by his actions from 20 years ago to now.. punish the rich, do nothing for the middle class, and give millions to medicaid, food stamps, housing projects, unemployment, welfare, and now those who could never pay their mortgages.

Re: Obama's new "forclosure fix" plan

Also, it's the irresponsible ones who can't pay their mortgages that made the housing market tank. This all started in the 90's with the community reinvestment act. Congress wanted more minorities to own homes, so they punished banks who did not lend to low-income minorities. The government started it and now they're finishing it with your money.

Message edited 2/19/2009 3:36:34 PM.

Re: Obama's new "forclosure fix" plan

Posted by longford73

I just want to know where is my "reward" for doing my research, understanding the terms of my mortgage and paying on time each month. It just doesn't seem fair sometimes that when you play by the rules you get screwed

Message edited 2/19/2009 3:41:31 PM.

Re: Obama's new "forclosure fix" plan

According to Newsday, there is something in the plan for those who pay their mortgage on time every month and have put money down on their houses, but can't refi bc the price of their home has dropped so much. The banks will be able to let them refi even without the 20% equity. At least that is what I understood it to mean. I hope this is the case bc my mortgage is crazy and we would desperately like to refi, but even after doing work, our house is worth less than we paid for it!

Message edited 2/19/2009 4:26:21 PM.

Re: Obama's new "forclosure fix" plan

What about the people who refinanced to buy cars, take lavish vacations, pay off credit card bills??? And that's why their home value is below their current mortgage balance???? Do those people get a break??? Totally unfair. Meanwhile DH and I work our a**es off and for what???

Re: Obama's new "forclosure fix" plan

ITA with all these posts

the plan SUX!!!!!!!!!!!!

Re: Obama's new "forclosure fix" plan

The plan actually scares me. If it's going to be more and more of this kind of thing I worry about what that means for the future.
With no incentive to work harder, make smart decisions, etc, why should we bother to go above and beyond with anything....

Re: Obama's new "forclosure fix" plan

link

Re: Obama's new "forclosure fix" plan

Re: Obama's new "forclosure fix" plan

Posted by luckyinlove

According to Newsday, there is something in the plan for those who pay their mortgage on time every month and have put money down on their houses, but can't refi bc the price of their home has dropped so much. The banks will be able to let them refi even without the 20% equity. At least that is what I understood it to mean. I hope this is the case bc my mortgage is crazy and we would desperately like to refi, but even after doing work, our house is worth less than we paid for it!

Re: Obama's new "forclosure fix" plan

Posted by anonttcer

The plan actually scares me. If it's going to be more and more of this kind of thing I worry about what that means for the future.
With no incentive to work harder, make smart decisions, etc, why should we bother to go above and beyond with anything....

Re: Obama's new "forclosure fix" plan

I think they should extend the terms to make payments affordable.

If you can't afford your 30 year mortgage, the bank will make it 50 years.

Eventually prices will go back up and people can sell & make a profit or refi.

I did my research and moved way further out east than I had liked, but I did it to afford a house. We would have been better off buying something we couldnt afford

well, at least I can sleep at night.

Re: Obama's new "forclosure fix" plan

I was listening to NPR yesterday and the woman made an excellent point. She did her research and can afford her mortgage - would it make her feel better if the guy down the block was homeless with his three kids as "punishment" for taking on a mortgage he couldnt afford? Probably not. . .

Re: Obama's new "forclosure fix" plan

Re: Obama's new "forclosure fix" plan

Re: Obama's new "forclosure fix" plan

Posted by longford73

I just want to know where is my "reward" for doing my research, understanding the terms of my mortgage and paying on time each month. It just doesn't seem fair sometimes that when you play by the rules you get screwed

Re: Obama's new "forclosure fix" plan