Obama Expands Housing Help to Include Second Mortgates

[Hissyspit]

Source: McClatchy Newspapers

Obama expands housing help to include second mortgages

By Kevin G. Hall, McClatchy Newspapers – Tue Apr 28, 5:48 pm ET
WASHINGTON — The Obama administration expanded its efforts to prevent Americans from losing their homes, unveiling a program Tuesday that's designed to give financial incentives for companies to modify the terms of troubled second mortgages.

The new effort builds on the Making Home Affordable program, which was announced on Feb. 18 to arrest the rising rate of foreclosures by lowering homeowners' monthly payments. The administration now will give cash rewards to mortgage servicers, who act as bill collectors for investors who own pools of mortgages.

As many as 6 million homeowners nationwide are thought to be at risk of foreclosure over the next several years, potentially prolonging the worst housing slump in modern times and delaying an economic recovery. The administration hopes to help 4 million of these homeowners avoid foreclosure.

"Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system," Treasury Secretary Timothy Geithner said in a statement. The new effort addresses a key obstacle to loan modification.

Read more: http://news.yahoo.com/s/mcclatchy/20090428/pl_mcclatchy/3222128

[dipsydoodle]

1. Does that refer to

second mortgages on sole property or another mortgage on a second property ?

[Lance_Boyle]

2. What does it matter?

It's either rewarding people who bought a second home beyond their means, or took out a second mortgage on their primary residence to fund a pool or an SUV or those granite countertops.

[InkAddict]

4. Or the expense of a facility for a too sick for home,

not sick enough for skilled nursing relative (something completely left out of the present system at the time) Nice judgement!

[Xithras]

13. Or...the down payment.

At the height of the boom, a lot of people were purchasing with 100% financing. The second mortgage was often their down payment.

The second on my house funded renovations to fix a mold and dryrot problem.

Don't be such a cynic.

[Duckhunter935]

3. Doo not like this nt

[Bluenorthwest]

5. So we are paying for the homes that others rent to us?

Buying the second mortgages that people used to fly to various vacation spots and build home theaters?
I guess a publicly supported mortgage is better than a pony.

[WriteDown]

8. Nail meet.....nt

[madmom]

6. Well let's see, I have a second mortgage but I don't have a second home that

I rent out, a pool, a summer home, shit I don't even have a pony. What I do have is a new bathroom (it actually works now) a new kitchen,a roof that doesn't leak, a floor that doesn't creak. Oh but wait, I did get frivolous, I have a new deck in back.

Gotta love broad brushes!:banghead:

[WriteDown]

7. And you should get a discount for that?

Sounds like you used the loan exactly as it was intended. I have a house built in 1943 that I am rebuilding piece by piece. Entire new electrical system, new plumbing, foundation repair. Unfortunately, Texas makes it nearly impossible to take out a 2nd mortgage, so who is going to give me my discount?

[madmom]

12. And where did I say I wanted a discount? I was merely pointing out that all second

mortgages were not used frivolously like so many seem to think!

[WriteDown]

15. If you are cashing out equity though...

that is your choice. You're basically using your house as an ATM. Improving the value of your home is your wisest option obviously.

[WriteDown]

9. You've got to be kidding me!!!!!

"For the popular interest-only loans that got a lot of homeowners in trouble, the government will share the cost of getting the second mortgage down to a rate as low as 2 percent.

In a standard mortgage, the government will share the costs of bringing a low-cost second mortgage that has both principal and interest down to an interest rate as low as 1 percent"

:grr: :grr: :grr:

[Name removed]

18. Deleted message

Message removed by moderator. Click here to review the message board rules.

[debbierlus]

10. This is the same sour grape mentality in this thread that Republicans use against welfare

I don't get anything, screw the other people with their vacations and fancy cars or whatever...

The majority of the people I know who took out second mortgages did so for home repairs or medical emergencies. I am sure there are some who were irresponsible. There are also some who lost jobs...some who used it to help their kids go to college...some who had no other way to buy a furnace to heat their homes.

I have a second mortgage (and NO I won't get a discount, my loan is in good standing and this is for people in trouble, not everyone), and every penny went into fixing up the old home (by fixing up, I mean roof, insulation, & paint, not spas or pools).

So, have a little charity and don't take it out on your fellow citizens.

You want to get mad, rage at the banks and the fact that the economic policy changes didn't include interest rate reductions for EVERY American, automatically. Talk about stimulus, THAT alone would put in billions to the economy. Or, at least refinancing with ZERO closing costs. There is so much that could have been done to help everyone, but they choose to throw it in the toilet and create another bubble which will pop. Get mad at that - don't moan that others are getting a scrap of help (if they get it at all, the burecratic red tape put up will likely ensure only a handful get anything at all).

[WriteDown]

11. That's a bunch of bunk..

The article specifically states that INTEREST-ONLY loans will go down as low as 2%. Interest only loans are the preferred loan of house flippers and "investors." If they're going to bring 1st mortgage down to 2% and 2nd mortgages down to 1%(which is odd in itself, since they are riskier)then they should do it across the board.

[bobalew]

16. Hey, Hey There! Try being a bit more knowledgeable!

My Second, Home equity Loan, was for Disaster Recovery for which I suffered (My Home was sewaged from FLOODING from a Neighbor's Failed Bulldozing project). I rebuilt the Basement Apartment I rent out in my home, and My first floor, all required to get any insurance, which did not cover the costs. So all that money went into repairs. I am still reeling from the financial pain that it created, yet I MAKE MY PAYMENTS EVERY MONTH! So Tell me Again, You Knee jerk, that I am irresponsible, and undeserving of any help! I Haven't asked for any, and I didn't get any Disaster help, and did it myself. I would like a re-fi, that brings it all down to a dull roar, so I can keep my home, But I guess I deserve to lose it, according to you, because I had the poor judgment to want to keep & recover my house. Of course I'm being a bit facetious here, but for good cause. If you can't take all the Facts & circumstances into account, Then DON'T Spout Off your Balderdash! Don't even try to defend your level of ignorance, it's disgustingly crass.
Regards, Bobalew

[WriteDown]

17. Why not just sue if the damaged was caused that way?

So glad you're now able to RENT out your basement too :eyes:

[Bluenorthwest]

19. Will you be passing on your savings

to your renter, who is in fact paying for your savings with their tax money? And paying your mortgate as well?
And why did you not sue your neighbor for flooding you out? Also, not taking disaster aid but taking mortgage? Why did you not just take the help when you needed it?

[Vidar]

14. Can failed home owners pay bonuses?