My idea for this blog and my forum from day 1, has always been a vehicle for homeowners to connect, share, and support one another. No one knows what you are going through like YOU all do. No one knows what it’s like to lose their dream, their security, and know one can comprehend the uncertainty of your future, like you.
From how you’re going to make your next payment, to where your going to live, consumes your thoughts, days, and lives.
Only one who has walked, or is walking in your shoes, can relate and truly understand the pain and suffering that this is causing you and your family.
You ALL need to know that you are not alone. Actually far from it.
I wanted to share this unique and touching exchange between two homeowners who met on this blog today and what happens daily in our forum at www.LoanSafe.org. Please help one another like Christina and Tricia and the many other suffering people who need your hand and kind words. You never know, a hand of support can be just what someone needed to keep fighting, or to keep from throwing in the towel on their home or marriage.
This is no joke. This is serious and these are people’s lives that are behind these bad loans and foreclosures. Not statistics, but lives.
Let’s NEVER forget that!
Pay it forward because it always comes back to you………..
Christina on Jun 3rd, 2008 at 3:00 am
Hi,
I’m in the same foreclosure boat but with a bit of a twist. My foreclosure will be due to divorce and job loss.
When my husband left, he took our savings and I tried to pay everything on my salary alone. I asked in the divorce papers to be repaid my half of what he took since we saved it together, but he’s sent nothing, zippo, zilch. In March, I lost my job and have not been able to find another just yet.
I listed the house FOR SALE in March after I lost my job hoping to sell quickly enough and get out of this ‘alive’ so to speak. I’ve called Countrywide, but since I am not yet delinquent, they will not talk to me and when I’ve asked to be escalated to a supervisor or manager, I was hung up on. One “gentleman” flat out told me, “Don’t call us, we’ll call you”. I thought these kinds of calls were recorded?
I do not have enough money for a full payment for June’s house payment which is due no later than June 15th. I will be late for my first house payment this month.
I have two questions:
#1) My current credit scores are: 820 769 & 749. What will this first late payment do to my scores? Will I take a 50 point hit? A 75 point hit? What about the 2nd and 3rd months? Since the house is not selling (despite lowering the price to almost what I paid for it in 2004), I can only believe the foreclosure cliff is where I’m headed.
#2) Since I have only my unemployment now (and that only covers utilites and insurance), I was wondering if anyone has had any experience with Countrywide working with them on a deed in lieu of foreclosure? I would much rather sign the house back over to them and both of us go on with what’s left of our lives than to string this out any further. The stress this has taken on me has been incredible. I’ve lost a husband and marriage, my job and security, and now, my home and my credit rating.
- I wonder, what’s left for anyone anywhere to take from me?
- And what will become of me in the future?
- How will I rent an apartment?
- How will I replace my car when and if anything happens to it in the future?
- Where are all of us who are going thru foreclosure going?
- Where are we all living?
- Why aren’t there any stories or news reports about the faces of foreclosure?
- I need to know what my future looks like and is it as bleak and scary as I think it will be. How does one ever recover from something like this?
- Is rebuilding credit even possible after an event of this magnatitude?
I am not, nor have I ever been an irresponsible person. I was a single parent working 2 & 3 jobs for 19 years, my son currently serves in the U S Army and is stationed in Iraq, I pay my bills in full on time, every time. I understood the home buying process and obtained a 6.25% interest rate on a 30 year fixed mortgage with my good credit, stable history and work references.
I understood the game. I’m not claiming ignorance or preditory anything. I accept full responsibility for what’s happened. I just need to know how to play the game from here. What in the world do I do now?
Thanks in advance for any and all assistance. I am grateful.
Have a good day,
Christina
Christina,
Thank you for your honesty, and let me just say, that you wrote every part of what I am thinking as well.
I am a single Mom facing the same issues. Although it may not seem like it, your words helped me, to know I am not alone.
God Bless You
Tricia
Tricia & Christina
you are NOT alone !!!!
what about those of us who truly have been through a hardship, trying to raise our children and saving our home???
what then?
What are the banks and the hope department doing about us?
are we just a # on the pile?
You wonder just how ugly this thing is going to get.
Tricia,
Girlfriend, you are not alone. I felt the same way for the longest time. I am sincerely grateful to this website for allowing us to find others like ourselves who are also in the same situations. This is the hardest thing I’ve ever gone thru; and as a single parent, you know how tough it is. I would rather go back to the days of working 12 and 14 hours just to provide for my son. At least I knew my way around THAT world. This, this is just plain scary and I understand exactly how you feel.
If you ever need to talk………I would be happy to give you my email address. You are in my thoughts. Hang in there, Girl!!!
All My Best,
Christina
Carrie,
I can only imagine that the circumstances which led us to our current situation mean nothing to our mortgage holders. Business being business, they cannot afford to care or it would cost them money. Therefore, we are at their mercy. With our credit, with our sanity and with our futures. Sad, but true.
If you need to talk more, please let me know. I don’t have any answers………I’m still trying to figure all this out for myself; but if you need an ear or a shoulder, I’m here.
And as I find out information, or have an update on what is happening to me in my situation, I will be sure to post.
All My Best,
Christina
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Hey Christina, Carrie, and Trish… Please check out http://www.loansafe.org. I believe you both can recieve the support and empowerment to save your homes.
Dear Mr Bedard.
How can I adequately express to you the gratitude I feel for you creating this website? Words fail me. But please know you are a hero in my book for taking the time to care and for having a kind and compassionate heart.
Those of us facing the ugliness of foreclosure already feel embarrassed, defeated and isolated. I wish I had found this website earlier. I’m sure it would have at the very least let me know I was not alone in such a pickle.
It is incredibly frightening; facing such an uncertain future where before, I pretty much had the rest of my life planned out.
I honestly don’t know what the future holds for me or where I will find myself a year from now. But I can tell you there will be a special place in heaven for you, Mr. Bedard. A very special place indeed. I believe this with my whole heart!!
I am happy my post was able to provide an example for you to show what your site means to you. And I meant every word I wrote to Tricia and Carrie. Girls, if you’re out there and reading, let’s lean on each other, work with each other and guide ourselves out of this sticky wicket.
I will go check out the referral website loansafe.org and I hope to learn new strategies as I prepare to deal with Countrywide head-on after my first missed house payment later this month.
Wish me luck, Mr. Bedard.
And thank you again a million times over for this godsend of a website!!
All My Best,
Christina
Hello Christina, I’m sorry to hear of your situation. My only suggestion is to go and get a modest apartment while your credit is still good, and stay there to ride this out. I’m going to be blunt, no matter what you try to do with your house and Countrywide your credit will be shot. Best thing is to walk away. You are not alone, please do not feel bad or ashame. I use to work in the credit verifying department of Countrywide. I’m sorry to hear the people were rude to you. 2 years ago we were not allowed to behave like that. Yes, the phone conversation is suppose to be recorded and audited. Remember one thing, the older the deliquency on the credit report become the better your FICO score will improve…credit is not everything, it can be fix..please don’t apologize and take the blame. Divorces & jobloss is something out of your control….I’ll be praying for you, Claire
FYI-mtg companies will not work with you. My friend tried negoiating, they told her to “if you can’t afford it, then let it foreclose.” This is Chase Mtg guys…
Christina & Claire …
I checked out loansafe.org it is AWESOME !!!!
we are not alone at all.
There are still good people out there helping one another, even if the banks & Angelo Mozillo’s (GOdzillos) of the world turn their back on us.
I have had a horrible experience with Countrywide, I still have to wait until August for the loan modification if that ever happens, and even if they freeze your account due to the loan modification, you can still pay your loan through checkfree.com. { i learned that at loansafe.org} tell them your story and you will see how many others are in similar situations across the states.
MOE BEDARD It has been a blessing for me & my family to have found your website…. You kick ass in so many ways !
I am grateful you allow everyone to express their thoughts & experiences!
There are so many things that have caused us to get to this place, the Bush admin, the greedy banks (CountryWide for one), the Realtors, the Loan Officers, the Mortgage Brokers, the Title companies, the Appraisals, it was all a chain, those that looked the other way & knew they were doing wrong will pay sooner or later – some are already paying by parking cars or flipping burgers. Not all in the industry were bad, but for those few good people, the rest of them have done them in.
I am hoping for Solutions – hoping to save my home & my families sanity… Children need to know that they are loved and we need to provide that + shelter, & food.
God Bless you all ! we are not alone ! in Unity we find strength. Thanks again Moe for allowing all of us to find each other !
Sincerely,
Carrie
Miami, FL
Carie,
You don’t know how much I apreciate the kind words you have said here. It humbles me to keep fighting the good fight and together we can make this happen.
I am glad you found LoanSafe.org and hope to see you more around here. You seem to be someone who we would love to have has a regular member and voice for the people suffering in their homes.
I wish you the best and God bless Carrie! You rock!!!!!
Sincereley and Respectfully,
Moe Bedard
Tricia, Christina, Carrie
We’re a Loan Modification Co. we have an attorney that is involved in all the legal aspects of the modifications we work on. We’re very good and have done well for our clients. Now, bar that we have a situation where we can’t do a modification for a client but we negotiate with her lender for a short sale and then put her into another house. This is the situation I was thinking about for you Christina. Hopefully this gives you an idea or give us a call 866-876-1400 ask for Johnny Loss Mitigation Dept.
Carrie on Jun 5th, 2008 at 8:05 am
Christina & Claire …
I checked out loansafe.org it is AWESOME !!!!
we are not alone at all.
There are still good people out there helping one another, even if the banks & Angelo Mozillo’s (GOdzillos) of the world turn their back on us.
. . .
There are so many things that have caused us to get to this place, the Bush admin, the greedy banks (CountryWide for one), the Realtors, the Loan Officers, the Mortgage Brokers, the Title companies, the Appraisals, it was all a chain, those that looked the other way & knew they were doing wrong will pay sooner or later -
YOU HAVE GOT TO BE KIDDING ME! You forgot to blame the butcher, the baker and the candlestick maker.
For Chirst’s sake, was the home worth the price you negotiated? Do you still like your home that you live in?
If yes, make the payments. If no, move so someone else can make some payments.
Hey GOLAKERS the butcher, the baker & the candlestick maker are out of a job because we can’t keep buying their goods and the economy is all but F**ked and we are on a downward spiral into recession…
and i did not blame them because they have nothing to do with the housing market, mortgage industry or the economy.
yes i love my home, & that is why I am trying to negotiate a loan mod …
have a wonderful evening ! & i want the Lakers to win also.
even though you keep kicking me while I am down no prob…
if you were the one going through the hardship I wouldn’t be kicking you I’d be offering my hand to help you up !
in response to GOLakers glad to see you remember a nursery rhyme great job but who the hell is going to be able to move in & continue to make payments, in todays economic state. as you stated in your last sentence.
hmmm oh yeah all those rich f^^^ers who took advantage of the working class.
wake up and smell the reality this will just be another property in the banks foreclosure and will probably be vacant for years because they didn’t want to help the original homeowner.
I say F^^K the banks if they do not want to help people.
another blogger stated they should just live there mtg free until they are kicked out. AND I’ll add to take the blinds you paid for, the fans, the lighting the crown molding, the drapes, the flooring, the appliances that you paid for and have the bank pay for them since the bank wants to keep your house they can have it in the same state you purchased it, since the market keeps crashing & property values keep dropping due to the # of foreclosures in peoples neighborhoods.
Hello Moe,
Is there a way that I can contact you privately without posting on the site.
I have been asking certain questions to people and am very interested in helping people like the obligors who have posted on your site. You can’t believe how many people or in this situation.
I’ll send you something I’ve sent to my attorney. I am trying to research a way to help people who have filed Chapter 13 and am working with a bankruptcy attorney who would like to use TILA for his clients. He’s says 100% of them filed to save their homes.
Here it is:
Hi Matt,
Okay, I got some answers to some questions I had–not all of the ones I posited to you but others.
Since my current mortgage/lien holder (Select Portfolio) has to assume all liability, then the loan wouldn’t revert to New Century but to the loan holder before that (Homestar–not sure if they’re still around).
So, there are a few questions that still need to be answered–however, no one seems to really know the answers.
1) Who owns the loan once it’s rescinded?
According to information I’ve found, some have stated that the current mortgagor must be paid back in money or property–only after, however, all monies have been returned. They have 20 days to return the all funds paid in associated with the loan (and according to some, attorney’s fees as well). I would assume that damages of $2000 a violation (per the fed court) would also have to be factored in.
Others say that the loan is gone like it never existed and reverts back to the loan the obligor had before the current loan had been enacted. Now, since the old lender has been paid off, it appears that procedurally the obligor owes the current creditor, less the paid in amounts, interest, loan fees, etc. But technically, the loan reverts back to the old lender. So, who owns the loan?
If the rescinded loan becomes unsecured debt, which is does, then it can be discharged in bankruptcy.
Or, the loan could go back to the old lender who would then have to pay back the money. I think that they would loathe to do that.
So, it’s possible to have both lenders going at each other like piranhas until the water clears. That would be an interesting case, indeed. But I think that it would take years.
Here’s TILA:
(b) Return of money or property following rescission
When an obligor exercises his right to rescind under subsection (a) of this section, he is not liable for any finance or other charge, and any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or property given as earnest money, downpayment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the obligor, the obligor may retain possession of it. Upon the performance of the creditor?s obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the obligor, at the option of the obligor. If the creditor does not take possession of the property within 20 days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for it. The procedures prescribed by this subsection shall apply except when otherwise ordered by a court.********************************
I think that the key sentence here is “Upon the performance of the creditor?s obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value.”
Since I’m in bankruptcy, it would be impractical & inequitable to tender the whole value. ‘Reasonable’ value comes into play–which can mean 10 cents on the dollar or not, depending on the dischargeability of the debt.
I think that there is also some ambiguity about –”If the creditor does not take possession of the property within 20 days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for it.”
I believe that there is a case to be made that if the creditor does not give back all the money or at least provide a payoff notice deducting all monies associated with the loan, 20 days after deadline of the notice of rescission (which is 20 days) –”ownership of the property vests in the obligor without obligation on his part to pay for it.”
I do think that this clause can be interpreted that way, as, shall we say an ‘incentive’ for the creditor to not drag their feet and actually complete the rescission request. You have to wonder what the original intent behind that clause was—what would it be if not a severe penalty (losing loan and collateral) to the creditor for lack of action on the matter.
I also believe that for each and every request for rescission that is not implemented, there are damages of $2000 (as per fed court) a pop. So every 20 days a obligor can request rescission and rack up damages if there is no answer–each with accompanying attorney’s fees.
2) What happens when the bankruptcy debt discharge limit has been exceeded?
What happens to the debt to be discharged when it is over the limit? Or cumulatively over limit? That’s why I think the damages play a part here–the more TILA/RESPA et al violations, the more can be argued to be removed from the loan as the damages accrue–to the tune of $2000 a violation in fed court.
3) What are the time limits to respond to a creditor’s hearing? Can a creditor request extra time after the fact–even after being properly notified of a bankrupt obligor?
This is a crucial question as it will determine **when** to rescind a loan. If the creditor does not show up at the creditor’s hearing, there is a case to be made that any subsequent ‘objections’ are untimely. Imagine the can of worms a bankruptcy judge will open if they start extending creditor objections. I don’t know if that happens often, but I don’t think the bankruptcy trustees would be too keen on it.
So, if a bankrupt mortgagor had TILA violations, and rescinded after the creditor’s hearing there’s not a lot the creditor could do, I think, if they didn’t show to the hearing.
The IRS always seems to be there, so especially in this market, it seems plausible that the mortgagor should be, too.
My situation in bankruptcy dictates what I personally can do, but there are lots of alternatives for other obligors. If they don’t want to declare bankruptcy, then go the TILA violation route. If they are in bankruptcy, wait til after the creditor’s hearing (if the mortgagor is within the 3 year timeframe) and rescind. After 20-30 days, discharge the loan through the bankruptcy. This should even work with Chapter 7, though Ch 7 won’t stop the foreclosure, the rescission should.
After more research, I believe the best way to go is to do operate within the parameters of the bankruptcy court. There are stricter guidelines for timeliness and it’s less likely to drag on for years. Also, the creditor’s are a bit hobbled by the constraints of a bankruptcy court–less likely for nasty procedural tactics to be used as a defense strategy.
I’d like to have these questions answered, but here’s how I’d like to proceed.
a) I want to rescind the loan through certified mail. I’d also like a copy faxed from the law office.
b) I want to have removed immediately any portion of the SPS loan from the plan payments
c) If a trust account is deemed necessary, I want it based on the new loan total or what I would be paying at that total with the previous lender (I have the paperwork).
d) I want to notify the bk court that I’ve rescinded the loan.
Please let me know your thoughts–I’d like to move on this no later than mid-week next week. I’d do it tomorrow, actually.
Thanks for reading,
Lisa
After I wrote that, I thought of something else:
Just thought of something else—-
When one files a chapter 13, the trustee puts you on a payment plan. Interest and penalties stop accruing and the debt is paid off or at least a percentage of it is.
I believe that would pertain to the ‘unsecured’ mortgage debt after rescission in a bankruptcy. So, even if the debtor paid at 100%, the payments would be spread out in 60 payments and NO interest and NO penalties.
That’s seems to me to be just as good! Who needs a new loan if you can make the payments interest free thru Chapter 13?
Just throwing around some ideas…
Lisa
Moe, I’d love to get your feedback on this.
LISA,
what the hell are you saying here you lost me with the wording in your letter..
anyways : what your trying to say that it would be better for everyone to file bankruptcy (Cahpter13) have the debt removed/paid and you still keep you house & make payments interest free?
I’m not suggesting that anyone file bankruptcy. It’s for those who are already in bankruptcy–and there are a lot already, trying to save their homes.
I’m saying that the snafu for most people is trying to get another loan. Even if people can rescind due to a TILA violation, it is becoming increasingly difficult to get another loan. Nearly impossible if you’ve filed Ch7 or Ch13.
But Chapter 13 creates a payment plan. If the leftover mortgage becomes unsecured–detached from the property–it can then be made a part of the payment plan. It solves the problem of getting a new loan.
Excuse the wording–I was hoping this would go to Moe before it posted–I thought that there might be an intermediary in the process.
TO GOLAKERS:
It’s a strange thing that happens when people blame the victim. It almost always stems from a lack of understanding of the full situation. Allow me to educate you a bit.
TILA violations have been so rampant these last few years that they were almost ubiquitous. Do you know what TILA is? If you don’t, you’re not alone. Many attorneys do not know what TILA is or even know how to enforce it. In fact, even our possible president-to-be Obama is clearly ignorant of TILA’s existence—as evidenced on his website that he’d put in place protections and stricter disclosures. Guess what? That what TILA is!
So, you have lay people signing documents that are based on laws that even lawyers don’t understand, haven’t read or don’t know exist. What they are signing can only be fully understood by an understanding of what the documents are supposed to be based on. If you don’t know what that is, then you aren’t making an informed decision.
And guess what? That’s nearly all of us.
Lisa,
i don’t know what a TILA is either. the only document I signed was the application and that was it.
well until i got to closing then i had hundreds of pages to sign.
You are the face of our families losing their homes. My company negotiates with lenders to keep families in the home, instead of waling away, and putting a house on an already flooded depressed real estate market. If you are interested, but only if you want to stay. We son’t collect money up front and we don’t take control of your home. You remain in control the entire time. Save your money and stay smart. It sounds like you have done everything you can do. We are facing a nationwide epidemic that is only going to continue to spiral out of control until the lenders get a grip. They are slowly realizing throwing people out is not the answer.
I truly feel for Ed McMahon, I saw part of the interview he had on Larry King. They were friends etc who offered to help him economically and Ed did not want handouts. Has Countrywide not been able to modify his loan ????
He is an example of what some of us are facing, but on a larger scale, Jose Canseco as well as many others who may be embarassed to come out.
We need SOLUTIONS to this terrible state we are in, I for one feel for Mr. McMahon, he has worked all his life, has helped so many and now he is in this situation.
MOE again what a way to bring it out in the open.
I really don’t get what happened to ed.
His picture was on publishers clearing house for years.
He was a spokesman… even if he is sick and bedridden…he could still license his picture?
There has to be more to the story… the divorce makes some sense but I suspect he also was swindled along the way and had some bad investment advice. I had heard of a stckbroker who was a “broker to the stars”… that had bilked a bunch of celebs…carmen diaz, cruise… i wonder if he took ed out as well??
I think that wealthy people have money problems too… but we don’t hear about it .. When you look at celebs like Cher or Mik Jagger or the celebs who have been around alot are still performing and working it would seem that WEALTH is an individual definition.
wealth is simple-
how far in advance you can pay your bills without working…
Yeah i agree its all about planning really. Pay you bills on time and avoid foreclosure.
People that are in the spotlight usually have a lot of pressure on them. They need to look good for their audience. They spend money carelessly. In order to avoid foreclosure such people should plans monthly payments and stick to it. They should also get a reliable professional.
Regardless of the cause, it is important to oppose government buyouts or subsidies of these distressed mortgages. There are private enterprise solutions. For example, ABC news (LA) reported that Foreclosuretrackers.com would buy Mr. McMahon’s mortgage and workout affordable terms for him.
I guess it really comes down to the price of the home….that seems to be the key theme in most of the posts.
I have one possible solution…let’s drive home values back down to affordable levels while rates are still low.
If you happened to buy a house in 2005/06 during the peak…look in your hood for the same or similar home that is now worth almost 50% less than when you purchased yours….make a low ball offer on any that are for sale at the fire sale price and move quickly to close on the new home at a much lower value. Now that the 95%-100% loan is back.
Then let your current home move into foreclosure…(after 4 years you will be able to qualify for a conventional mortgage again anyway. I also suspect that with the number of people who are going into foreclosure that the time-line to qualify for a conventional loan will be reduced at some point).
Why should you pay 50-60% more than you need to? Your mortgage payment will be lower and as well as your property taxes. A real win-win…except for the old lender….but so what?? they were the one’s that let you buy an over valued home in the first place and now when you ask for help….the lender does not even try to help you out.
This would be one approach to help home values become more affordable…
it seems the high end home-buyers are beginning to do this very tactic…esp when their current value has dropped 40-50%. Most Jumbo financing this year (loans >423k in most areas) are in the 7%-8.25% range or higher. So it is very difficult for those borrowers who bought the past few years to even refinance into more affordable terms when the rate offered now is much higher than what they have from 2 years ago.
it is time to fight back with some creative tactics of our own….
Gator,
Question, how will I qualify to buy another home if I currently have one?
I understand your train of thought here, but How can we do it?
One of my co-workers said that the home next door to hers foreclosed & the bank soldit for 48% under the original price (the bank lost almost 50%). So instead why don’t the banks just lower everyones payments so that they can afford the house they are in now and the banks/investors still get paid.
why the loss instead of a lower gain????
Carrie,
The answer is you can’t do it. Try reading this article:
http://www.pressdemocrat.com/article/20080612/NEWS07/806120400/?ref=patrick.net
The banks are wising up and if they catch you doing it in some states they can go after your new house.
Do yourself a favor this time – get the education you didn’t get when you originally bought your house and stop buying into these koolaid fantasies.
This is why banks should not write down principals – you idiots will go right back out and do the same shit again. It’s called a moral hazard.
Proud Homeowner:
I totally agree with you that this is completely wrong, but I have been in several discussions with Gatorbait & lookinthemirror to try to understand their way of thinking & I can’t get their blinders off….
I am fighting to stay in the home that I am in.
I just did not understand the advice Gator was giving on his post and how can someone do that…
i think gatorbait was being a little ironic??
yes lenders are wising up to some degree but with the amount of foreclosures in the pipeline it would take some time to catch this activity and then trace back. Not to mention going to another lender. If one really wanted to it can be done.
In many cases you can offer a deed in lieu of foreclosure at some point in the process so the snap-back is less likely. Banks do not offer this option you have to present it so, get this , you did not feel coerced into handing over your deed.
Another thing most are not thinking about is that the lender can go after other assets to recover any differential. I have never seen this but now with how the losses are stacking up I am curious if there will be more forensic accounting to some level.
proud homeowner-
I read the article and it seems if they make a rule to stop the few who “buy and bail” that it will hurt the legit folks who may be trying to purchase another home before the current one sells.
I read that they may require 30% equity on the new house?
I have a friend who was telling me he is buying a new house and renting out his current property until the values move up a little.
He had said that when he did this a few years ago all the bank wanted was a lease agreement on the old property.
He told me now the same bank wants to see, in addition to the lease, that he has enough money in the bank to cover a year worth of payments on his old house and a certain amount to cover payments in the bank on his new house. I wonder if they will also want him to have 30% down on the new house as well. That seems a little overboard to me?
Jeeze if that is the case then only the wealthy are going to be able to buy new homes.
Dog Chapman – yes this is an another unfortunate consequence of this entire mess. But I can’t help thinking that in the long run we will all be better off for having gone through this. The whole mortgage business will be cleaned up and the traditional rules will once again apply. Homeowners have to change too, though – you buy a house because it is cheaper than renting, you buy a house to make it a home not to sell it to make a profit or leverage it to finance a “lifestyle” that your salary won’t support. We’ve turned into a nation full of Donald Trump wannabes – isn’t it funny though that people forget how many times he’s been bankrupt and lost everything? Most of us don’t have the stomach for that.
Carrie – I hope you are able to save your house but I also believe you should be realistic. You bought at the height of a bubble that has now burst. Your problems occurred not because of that and not because of some evil lender but because your circumstances changed – you lost your job. Things like that happen in all economies under Democrats and Republicans. If you can hang on or if you get your lender work with you, more power to you but please realize this is not something you are “entitled” to. Until you are willing to share any profits you make on that house you cannot ask the lender to bear the entire burden of the loss by writing down or forgiving any portion of the money you borrowed to purchase this home. It may take 30 years before your house is once again an asset. Can you live with that? Is it a home or just something you expect a return on? Think long and hard about that.
risk-reward is a quite an equalizer… i like your donald trump example as it does express that if you want the big reward be prepared for the huge downside risk.
the one important factor with the Donald though…he did get help from the lenders he owed money. They restructured and reduced some significant coin, of course these lenders knew the donald would rise again. All the donald wannabes do not have the luxury of the same help.
Bryce, I am fighting for my home.
I never bought my property with the intention to sell it to make a profit, i bought it to make it a home to raise my family in.
I do totally understand that i am not entitled to a mod but requesting one is not wrong. it is better to be upfront with the bank who lend you the money to purchase it , than not to contact them and not make payments….
I am responsible to provide food, shelter and love to my kids that is all I am trying to do. How can I share the profits with the bank If I gave them a down payment, used their appraiser, their title company, their broker/LO??? Trust me I would’ve much rather the appraisal have come in lower, (ie lower taxes, lower insurance, lower mtg payment) I believe a lot of us were hit between the eyes because of the big dogs greed.