- This topic has 145 replies, 16 voices, and was last updated 16 years, 2 months ago by
patientlywaiting.
-
AuthorPosts
-
October 1, 2008 at 9:02 PM #279509October 1, 2008 at 9:07 PM #279192
temeculaguy
ParticipantHas anyone ever read the fine print on principal write downs for current reworks, fdic run banks like indymac and the proposals floating in the legislature. They aren’t what you think, they don’t forgive the loan, they “write down” the loan for purposes of determining the payment but they don’t actually forgive it, when you sell, transfer or refi, they get that back. It’s a modified way to contnue a teaser rate or having a silent partner. The FHA sponsored stuff actually gives the forgiver their original money back and a cut of any profit. They also prohibit helocs, forever.
It will keep a roof over your head but that is about it. Let’s see, you pay someone a mortgage payment and when you leave, you get nothing, that smells a lot like renting except you get a tax deduction yet pay a higher payment over rent. Here is a scenario, FB pays 600k zero down, neg am, balance is 625 and enter some write down program. Their mort should have gone from 2800 to 5000 but the rework bases the loan on the current value of 350k and they pay about 2500 piti, usually .38 of their income in typical reworks. Then after ten years, they have paid down about 50k, price comes back to 650, after realtor fees and closing they clear 600, principal is 300k and rework holdback is 275k, lender gets the 575k in it’s entirety and they walk with 25k for ten years of paying too much for rent and all the maintenance. That is if it gets back to 650k. If it goes to 750k, bank gets half of the 100k profit, which offsets ten years of no interest on the 275k and the borrower walks with 75k but houses cost 750k.
It would actually be better to walk away or buy a place for 350k, walk away from the old and when and if things return just like the previous scenario, you are up 250-350k after fees. Or just walk away, rent for a year or two, buy a 350k house with fha 3 1/2 down and reap the actual rewards. Reworks are debtors prisons, much better for the lender than the fb, and that is why it wont work. So don’t get your panties in a bunch about all this forgiveness.
October 1, 2008 at 9:07 PM #279462ParticipantHas anyone ever read the fine print on principal write downs for current reworks, fdic run banks like indymac and the proposals floating in the legislature. They aren’t what you think, they don’t forgive the loan, they “write down” the loan for purposes of determining the payment but they don’t actually forgive it, when you sell, transfer or refi, they get that back. It’s a modified way to contnue a teaser rate or having a silent partner. The FHA sponsored stuff actually gives the forgiver their original money back and a cut of any profit. They also prohibit helocs, forever.
It will keep a roof over your head but that is about it. Let’s see, you pay someone a mortgage payment and when you leave, you get nothing, that smells a lot like renting except you get a tax deduction yet pay a higher payment over rent. Here is a scenario, FB pays 600k zero down, neg am, balance is 625 and enter some write down program. Their mort should have gone from 2800 to 5000 but the rework bases the loan on the current value of 350k and they pay about 2500 piti, usually .38 of their income in typical reworks. Then after ten years, they have paid down about 50k, price comes back to 650, after realtor fees and closing they clear 600, principal is 300k and rework holdback is 275k, lender gets the 575k in it’s entirety and they walk with 25k for ten years of paying too much for rent and all the maintenance. That is if it gets back to 650k. If it goes to 750k, bank gets half of the 100k profit, which offsets ten years of no interest on the 275k and the borrower walks with 75k but houses cost 750k.
It would actually be better to walk away or buy a place for 350k, walk away from the old and when and if things return just like the previous scenario, you are up 250-350k after fees. Or just walk away, rent for a year or two, buy a 350k house with fha 3 1/2 down and reap the actual rewards. Reworks are debtors prisons, much better for the lender than the fb, and that is why it wont work. So don’t get your panties in a bunch about all this forgiveness.
October 1, 2008 at 9:07 PM #279470ParticipantHas anyone ever read the fine print on principal write downs for current reworks, fdic run banks like indymac and the proposals floating in the legislature. They aren’t what you think, they don’t forgive the loan, they “write down” the loan for purposes of determining the payment but they don’t actually forgive it, when you sell, transfer or refi, they get that back. It’s a modified way to contnue a teaser rate or having a silent partner. The FHA sponsored stuff actually gives the forgiver their original money back and a cut of any profit. They also prohibit helocs, forever.
It will keep a roof over your head but that is about it. Let’s see, you pay someone a mortgage payment and when you leave, you get nothing, that smells a lot like renting except you get a tax deduction yet pay a higher payment over rent. Here is a scenario, FB pays 600k zero down, neg am, balance is 625 and enter some write down program. Their mort should have gone from 2800 to 5000 but the rework bases the loan on the current value of 350k and they pay about 2500 piti, usually .38 of their income in typical reworks. Then after ten years, they have paid down about 50k, price comes back to 650, after realtor fees and closing they clear 600, principal is 300k and rework holdback is 275k, lender gets the 575k in it’s entirety and they walk with 25k for ten years of paying too much for rent and all the maintenance. That is if it gets back to 650k. If it goes to 750k, bank gets half of the 100k profit, which offsets ten years of no interest on the 275k and the borrower walks with 75k but houses cost 750k.
It would actually be better to walk away or buy a place for 350k, walk away from the old and when and if things return just like the previous scenario, you are up 250-350k after fees. Or just walk away, rent for a year or two, buy a 350k house with fha 3 1/2 down and reap the actual rewards. Reworks are debtors prisons, much better for the lender than the fb, and that is why it wont work. So don’t get your panties in a bunch about all this forgiveness.
October 1, 2008 at 9:07 PM #279508ParticipantHas anyone ever read the fine print on principal write downs for current reworks, fdic run banks like indymac and the proposals floating in the legislature. They aren’t what you think, they don’t forgive the loan, they “write down” the loan for purposes of determining the payment but they don’t actually forgive it, when you sell, transfer or refi, they get that back. It’s a modified way to contnue a teaser rate or having a silent partner. The FHA sponsored stuff actually gives the forgiver their original money back and a cut of any profit. They also prohibit helocs, forever.
It will keep a roof over your head but that is about it. Let’s see, you pay someone a mortgage payment and when you leave, you get nothing, that smells a lot like renting except you get a tax deduction yet pay a higher payment over rent. Here is a scenario, FB pays 600k zero down, neg am, balance is 625 and enter some write down program. Their mort should have gone from 2800 to 5000 but the rework bases the loan on the current value of 350k and they pay about 2500 piti, usually .38 of their income in typical reworks. Then after ten years, they have paid down about 50k, price comes back to 650, after realtor fees and closing they clear 600, principal is 300k and rework holdback is 275k, lender gets the 575k in it’s entirety and they walk with 25k for ten years of paying too much for rent and all the maintenance. That is if it gets back to 650k. If it goes to 750k, bank gets half of the 100k profit, which offsets ten years of no interest on the 275k and the borrower walks with 75k but houses cost 750k.
It would actually be better to walk away or buy a place for 350k, walk away from the old and when and if things return just like the previous scenario, you are up 250-350k after fees. Or just walk away, rent for a year or two, buy a 350k house with fha 3 1/2 down and reap the actual rewards. Reworks are debtors prisons, much better for the lender than the fb, and that is why it wont work. So don’t get your panties in a bunch about all this forgiveness.
October 1, 2008 at 9:07 PM #279519ParticipantHas anyone ever read the fine print on principal write downs for current reworks, fdic run banks like indymac and the proposals floating in the legislature. They aren’t what you think, they don’t forgive the loan, they “write down” the loan for purposes of determining the payment but they don’t actually forgive it, when you sell, transfer or refi, they get that back. It’s a modified way to contnue a teaser rate or having a silent partner. The FHA sponsored stuff actually gives the forgiver their original money back and a cut of any profit. They also prohibit helocs, forever.
It will keep a roof over your head but that is about it. Let’s see, you pay someone a mortgage payment and when you leave, you get nothing, that smells a lot like renting except you get a tax deduction yet pay a higher payment over rent. Here is a scenario, FB pays 600k zero down, neg am, balance is 625 and enter some write down program. Their mort should have gone from 2800 to 5000 but the rework bases the loan on the current value of 350k and they pay about 2500 piti, usually .38 of their income in typical reworks. Then after ten years, they have paid down about 50k, price comes back to 650, after realtor fees and closing they clear 600, principal is 300k and rework holdback is 275k, lender gets the 575k in it’s entirety and they walk with 25k for ten years of paying too much for rent and all the maintenance. That is if it gets back to 650k. If it goes to 750k, bank gets half of the 100k profit, which offsets ten years of no interest on the 275k and the borrower walks with 75k but houses cost 750k.
It would actually be better to walk away or buy a place for 350k, walk away from the old and when and if things return just like the previous scenario, you are up 250-350k after fees. Or just walk away, rent for a year or two, buy a 350k house with fha 3 1/2 down and reap the actual rewards. Reworks are debtors prisons, much better for the lender than the fb, and that is why it wont work. So don’t get your panties in a bunch about all this forgiveness.
October 1, 2008 at 9:11 PM #279202DWCAP
Participant[quote=DaCounselor What’s “fair” to everyone is really out the window at this point.
[/quote]I always loved these quotes. Especially from my old coaches. Basically it is a “FU, I dont care and I have all the power and you will suffer because I am mad/scared/pissed/an asshole.”
I spoke to one of the accounting people today at my company. She was terrified. I asked why, and she didnt know other than her 401k has lost alot of money this year. She is an accountant, she should undersand this. But she doesnt and doesnt want to. She is down and pissed and wants it to stop. Welcome to “FU, I dont care!”
God bless fear, it is the best motivator I know.
October 1, 2008 at 9:11 PM #279472Participant[quote=DaCounselor What’s “fair” to everyone is really out the window at this point.
[/quote]I always loved these quotes. Especially from my old coaches. Basically it is a “FU, I dont care and I have all the power and you will suffer because I am mad/scared/pissed/an asshole.”
I spoke to one of the accounting people today at my company. She was terrified. I asked why, and she didnt know other than her 401k has lost alot of money this year. She is an accountant, she should undersand this. But she doesnt and doesnt want to. She is down and pissed and wants it to stop. Welcome to “FU, I dont care!”
God bless fear, it is the best motivator I know.
October 1, 2008 at 9:11 PM #279480Participant[quote=DaCounselor What’s “fair” to everyone is really out the window at this point.
[/quote]I always loved these quotes. Especially from my old coaches. Basically it is a “FU, I dont care and I have all the power and you will suffer because I am mad/scared/pissed/an asshole.”
I spoke to one of the accounting people today at my company. She was terrified. I asked why, and she didnt know other than her 401k has lost alot of money this year. She is an accountant, she should undersand this. But she doesnt and doesnt want to. She is down and pissed and wants it to stop. Welcome to “FU, I dont care!”
God bless fear, it is the best motivator I know.
October 1, 2008 at 9:11 PM #279518Participant[quote=DaCounselor What’s “fair” to everyone is really out the window at this point.
[/quote]I always loved these quotes. Especially from my old coaches. Basically it is a “FU, I dont care and I have all the power and you will suffer because I am mad/scared/pissed/an asshole.”
I spoke to one of the accounting people today at my company. She was terrified. I asked why, and she didnt know other than her 401k has lost alot of money this year. She is an accountant, she should undersand this. But she doesnt and doesnt want to. She is down and pissed and wants it to stop. Welcome to “FU, I dont care!”
God bless fear, it is the best motivator I know.
October 1, 2008 at 9:11 PM #279529Participant[quote=DaCounselor What’s “fair” to everyone is really out the window at this point.
[/quote]I always loved these quotes. Especially from my old coaches. Basically it is a “FU, I dont care and I have all the power and you will suffer because I am mad/scared/pissed/an asshole.”
I spoke to one of the accounting people today at my company. She was terrified. I asked why, and she didnt know other than her 401k has lost alot of money this year. She is an accountant, she should undersand this. But she doesnt and doesnt want to. She is down and pissed and wants it to stop. Welcome to “FU, I dont care!”
God bless fear, it is the best motivator I know.
October 1, 2008 at 9:42 PM #279227peterb
ParticipantWalk aways will be the real killer. Unemployed, have to relocate or just plain pissed-off that Wall street was bailed out by Washington and they werent. Who wouldnt walk away. If nothing more than a political statement…Let’s all get ours!! Wall Street bought Washington and got theirs!
Set the market free. Bring the pain!!
It’s the average persons revenge on a corrupt system.October 1, 2008 at 9:42 PM #279497ParticipantWalk aways will be the real killer. Unemployed, have to relocate or just plain pissed-off that Wall street was bailed out by Washington and they werent. Who wouldnt walk away. If nothing more than a political statement…Let’s all get ours!! Wall Street bought Washington and got theirs!
Set the market free. Bring the pain!!
It’s the average persons revenge on a corrupt system.October 1, 2008 at 9:42 PM #279505ParticipantWalk aways will be the real killer. Unemployed, have to relocate or just plain pissed-off that Wall street was bailed out by Washington and they werent. Who wouldnt walk away. If nothing more than a political statement…Let’s all get ours!! Wall Street bought Washington and got theirs!
Set the market free. Bring the pain!!
It’s the average persons revenge on a corrupt system.October 1, 2008 at 9:42 PM #279543ParticipantWalk aways will be the real killer. Unemployed, have to relocate or just plain pissed-off that Wall street was bailed out by Washington and they werent. Who wouldnt walk away. If nothing more than a political statement…Let’s all get ours!! Wall Street bought Washington and got theirs!
Set the market free. Bring the pain!!
It’s the average persons revenge on a corrupt system. -
AuthorPosts
- You must be logged in to reply to this topic.