Gov’t to target 4.5% for mortgages

[HLS]

I predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.

Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.

Keeps the govt from admitting how big the problem is and dealing with another FC.

1) If you think this is going to actually happen, I think that you are dreaming.

2)It is against constitutional law to interfere in private contracts.

3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.

They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.

It will take a foreclosure and a new transaction to have a lower loan balance on that property.

Maybe someone can come up with a name for the revolution…..

Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLS

[jpinpb]

Really, in effect, anyone doing a loan mod most likely is on the verge of walking or foreclosure. If the bank foreclosures, it is for sure a “new” low comp that people will use as a marker when purchasing a neighboring house.

But if the government allows everyone to do a 4.5% loan AND banks reduce the principle on a house, how could you justify purchasing a house based on a comp 2 years ago for 700k if the bank reworked it to 500k.

I just don’t think it will be accurate to use sales comps at that point. The bank, in effect, is indirectly saing the house is not worth 700k.

Edit: As far as blowing the whistle on landlords getting mods that are supposed to be owner-occupied, I’ve seen some that have gotten owner-occupied loans they shouldn’t have gotten in the first place.

These investors aren’t even getting a slap on the wrist. It would not shock me to see them get breaks that are just intended for owner-occupied. The system is broken.

[jpinpb]

Really, in effect, anyone doing a loan mod most likely is on the verge of walking or foreclosure. If the bank foreclosures, it is for sure a “new” low comp that people will use as a marker when purchasing a neighboring house.

But if the government allows everyone to do a 4.5% loan AND banks reduce the principle on a house, how could you justify purchasing a house based on a comp 2 years ago for 700k if the bank reworked it to 500k.

I just don’t think it will be accurate to use sales comps at that point. The bank, in effect, is indirectly saing the house is not worth 700k.

Edit: As far as blowing the whistle on landlords getting mods that are supposed to be owner-occupied, I’ve seen some that have gotten owner-occupied loans they shouldn’t have gotten in the first place.

These investors aren’t even getting a slap on the wrist. It would not shock me to see them get breaks that are just intended for owner-occupied. The system is broken.

[jpinpb]

Really, in effect, anyone doing a loan mod most likely is on the verge of walking or foreclosure. If the bank foreclosures, it is for sure a “new” low comp that people will use as a marker when purchasing a neighboring house.

But if the government allows everyone to do a 4.5% loan AND banks reduce the principle on a house, how could you justify purchasing a house based on a comp 2 years ago for 700k if the bank reworked it to 500k.

I just don’t think it will be accurate to use sales comps at that point. The bank, in effect, is indirectly saing the house is not worth 700k.

Edit: As far as blowing the whistle on landlords getting mods that are supposed to be owner-occupied, I’ve seen some that have gotten owner-occupied loans they shouldn’t have gotten in the first place.

These investors aren’t even getting a slap on the wrist. It would not shock me to see them get breaks that are just intended for owner-occupied. The system is broken.

[jpinpb]

Really, in effect, anyone doing a loan mod most likely is on the verge of walking or foreclosure. If the bank foreclosures, it is for sure a “new” low comp that people will use as a marker when purchasing a neighboring house.

But if the government allows everyone to do a 4.5% loan AND banks reduce the principle on a house, how could you justify purchasing a house based on a comp 2 years ago for 700k if the bank reworked it to 500k.

I just don’t think it will be accurate to use sales comps at that point. The bank, in effect, is indirectly saing the house is not worth 700k.

Edit: As far as blowing the whistle on landlords getting mods that are supposed to be owner-occupied, I’ve seen some that have gotten owner-occupied loans they shouldn’t have gotten in the first place.

These investors aren’t even getting a slap on the wrist. It would not shock me to see them get breaks that are just intended for owner-occupied. The system is broken.

[jpinpb]

Really, in effect, anyone doing a loan mod most likely is on the verge of walking or foreclosure. If the bank foreclosures, it is for sure a “new” low comp that people will use as a marker when purchasing a neighboring house.

But if the government allows everyone to do a 4.5% loan AND banks reduce the principle on a house, how could you justify purchasing a house based on a comp 2 years ago for 700k if the bank reworked it to 500k.

I just don’t think it will be accurate to use sales comps at that point. The bank, in effect, is indirectly saing the house is not worth 700k.

Edit: As far as blowing the whistle on landlords getting mods that are supposed to be owner-occupied, I’ve seen some that have gotten owner-occupied loans they shouldn’t have gotten in the first place.

These investors aren’t even getting a slap on the wrist. It would not shock me to see them get breaks that are just intended for owner-occupied. The system is broken.

[HLS]

The govt ISN’T going to “allow” EVERYONE to do a 4.50% loan.

Banks don’t own loans.
Banks won’t be reducing the balance of loans.

There is no profit to a bank to borrow short and lend long. They may have a servicing division, which may as well be called COCA COLA.

A modification adjusts the payment, it DOESN’T adjust the loan balance, value of the house, the last sale price or the tax assessed value.

Many liars did get purchase loans for investment properties a few years ago, it is unlikely to happen today. They often did it with the help of a dishonest mortgage “professional”

You have no idea what an underwriter looks for today when it comes to loan fraud, and the third party proof they get to verify owner occupied.

As of today, there is no govt plan in place to offer 4.50% loans to anybody on this planet, purchasers or refinancing.

If there is a plan ever in place, wait until you see the cost/fees.

Everybody got excited about the FHA Hope for Homeowners before the details were announced.
Pure foolishness…
It came with ridiculous fees. It was voluntary. It’s been a complete disaster.

Rumors of these govt plans do nothing more than get the masses hopeful to drag out the eventual outcome, and keeps many from walking away sooner rather than later.

[HLS]

The govt ISN’T going to “allow” EVERYONE to do a 4.50% loan.

Banks don’t own loans.
Banks won’t be reducing the balance of loans.

There is no profit to a bank to borrow short and lend long. They may have a servicing division, which may as well be called COCA COLA.

A modification adjusts the payment, it DOESN’T adjust the loan balance, value of the house, the last sale price or the tax assessed value.

Many liars did get purchase loans for investment properties a few years ago, it is unlikely to happen today. They often did it with the help of a dishonest mortgage “professional”

You have no idea what an underwriter looks for today when it comes to loan fraud, and the third party proof they get to verify owner occupied.

As of today, there is no govt plan in place to offer 4.50% loans to anybody on this planet, purchasers or refinancing.

If there is a plan ever in place, wait until you see the cost/fees.

Everybody got excited about the FHA Hope for Homeowners before the details were announced.
Pure foolishness…
It came with ridiculous fees. It was voluntary. It’s been a complete disaster.

Rumors of these govt plans do nothing more than get the masses hopeful to drag out the eventual outcome, and keeps many from walking away sooner rather than later.

[HLS]

The govt ISN’T going to “allow” EVERYONE to do a 4.50% loan.

Banks don’t own loans.
Banks won’t be reducing the balance of loans.

There is no profit to a bank to borrow short and lend long. They may have a servicing division, which may as well be called COCA COLA.

A modification adjusts the payment, it DOESN’T adjust the loan balance, value of the house, the last sale price or the tax assessed value.

Many liars did get purchase loans for investment properties a few years ago, it is unlikely to happen today. They often did it with the help of a dishonest mortgage “professional”

You have no idea what an underwriter looks for today when it comes to loan fraud, and the third party proof they get to verify owner occupied.

As of today, there is no govt plan in place to offer 4.50% loans to anybody on this planet, purchasers or refinancing.

If there is a plan ever in place, wait until you see the cost/fees.

Everybody got excited about the FHA Hope for Homeowners before the details were announced.
Pure foolishness…
It came with ridiculous fees. It was voluntary. It’s been a complete disaster.

Rumors of these govt plans do nothing more than get the masses hopeful to drag out the eventual outcome, and keeps many from walking away sooner rather than later.

[HLS]

The govt ISN’T going to “allow” EVERYONE to do a 4.50% loan.

Banks don’t own loans.
Banks won’t be reducing the balance of loans.

There is no profit to a bank to borrow short and lend long. They may have a servicing division, which may as well be called COCA COLA.

A modification adjusts the payment, it DOESN’T adjust the loan balance, value of the house, the last sale price or the tax assessed value.

Many liars did get purchase loans for investment properties a few years ago, it is unlikely to happen today. They often did it with the help of a dishonest mortgage “professional”

You have no idea what an underwriter looks for today when it comes to loan fraud, and the third party proof they get to verify owner occupied.

As of today, there is no govt plan in place to offer 4.50% loans to anybody on this planet, purchasers or refinancing.

If there is a plan ever in place, wait until you see the cost/fees.

Everybody got excited about the FHA Hope for Homeowners before the details were announced.
Pure foolishness…
It came with ridiculous fees. It was voluntary. It’s been a complete disaster.

Rumors of these govt plans do nothing more than get the masses hopeful to drag out the eventual outcome, and keeps many from walking away sooner rather than later.

[HLS]

The govt ISN’T going to “allow” EVERYONE to do a 4.50% loan.

Banks don’t own loans.
Banks won’t be reducing the balance of loans.

There is no profit to a bank to borrow short and lend long. They may have a servicing division, which may as well be called COCA COLA.

A modification adjusts the payment, it DOESN’T adjust the loan balance, value of the house, the last sale price or the tax assessed value.

Many liars did get purchase loans for investment properties a few years ago, it is unlikely to happen today. They often did it with the help of a dishonest mortgage “professional”

You have no idea what an underwriter looks for today when it comes to loan fraud, and the third party proof they get to verify owner occupied.

As of today, there is no govt plan in place to offer 4.50% loans to anybody on this planet, purchasers or refinancing.

If there is a plan ever in place, wait until you see the cost/fees.

Everybody got excited about the FHA Hope for Homeowners before the details were announced.
Pure foolishness…
It came with ridiculous fees. It was voluntary. It’s been a complete disaster.

Rumors of these govt plans do nothing more than get the masses hopeful to drag out the eventual outcome, and keeps many from walking away sooner rather than later.

[NotCranky]

I am glad you are posting again HLS. Your take on this is interesting and sounds right to me. People come up to me now and then and ask about loan modifications. I want to help but never know what to tell them…mostly because, as you say, the loan modification scenario has so many problems. Next time I am going to see it as a potential short sale listing.DUH!That would probably help them more than anything else too.

[NotCranky]

I am glad you are posting again HLS. Your take on this is interesting and sounds right to me. People come up to me now and then and ask about loan modifications. I want to help but never know what to tell them…mostly because, as you say, the loan modification scenario has so many problems. Next time I am going to see it as a potential short sale listing.DUH!That would probably help them more than anything else too.

[NotCranky]

I am glad you are posting again HLS. Your take on this is interesting and sounds right to me. People come up to me now and then and ask about loan modifications. I want to help but never know what to tell them…mostly because, as you say, the loan modification scenario has so many problems. Next time I am going to see it as a potential short sale listing.DUH!That would probably help them more than anything else too.

[NotCranky]

I am glad you are posting again HLS. Your take on this is interesting and sounds right to me. People come up to me now and then and ask about loan modifications. I want to help but never know what to tell them…mostly because, as you say, the loan modification scenario has so many problems. Next time I am going to see it as a potential short sale listing.DUH!That would probably help them more than anything else too.

[Author]

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