Rich – You may want to read this…

[cr]

This is probably going to prove to be one of the most ineffective and costly wastes of legislation in history. All the more why it’s assinine that it passed, but all I read indicates it’s virtually pointless for CA, where people all along have been planning on selling for massive gains once their loan adjusts.

This is from the doctorhousingbubble.com:

“The new housing bill now fully signed into law by the President will do very little to help California. Why? First, lenders should they wish to participate will need to have the property reappraised at today’s market value… In addition, the lender will be required to cut an additional 10 percent from the current appraised value. Well in places like Los Angeles where the median price is off by 35.65 percent an additional reduction of 10 percent will bring the one year correction to nearly 50 percent!…
…Another reason that this won’t fly in states like California is many borrowers even with the new bailout program will not be able to make their payments on a 30 year fixed…

…the minimum payment is only $2,053 on a $616,230 loan! Simply insane and ridiculous. What should be a $3,626 a month payment is artificially lowered by nearly half. Keep in mind that data on option arm loans tells us that approximately 80 percent of people make the minimum payment and we are not factoring in taxes or insurance above.
So with that said, let us assume the lender decides to participate and that home valued at $616,230 is now appraised at $396,560. How will the numbers work out now? Well first the lender will need to take off 10 percent off the appraised value plus a one time 3 percent fee from the note to participate in the program:
$396,560 x .13 = $345,007 new 30 year fixed mortgage
According to the Freddie Mac website the current 30 year fixed rate is 6.63%.

So let us assume the borrower now goes with this loan. What does his monthly principal and interest payment work out to be?
30 year fixed new principal and interest payment = $2,210.26!!!
So even after the massive haircut the lender will take from the 35.65% market correction, the additional 10% in reduced appraisal terms, and the extra one time payment the borrower actually has a higher payment than the initial Pay Option ARM payment for a loan that was $271,223 larger.”

[PadreBrian]

I suspect the housing bailout will help..but only the bastards who did get the option-arm loans. I can’t fault them for working “the system” but they fuct everyone else.

In the example above the NEW monthly FHA 30-year fix loan of $2,210.26 is only 200 bucks higher than the old option-arm payment of $2,053. It’s a no brainer. These borrows will do the switch in droves.

[PadreBrian]

I suspect the housing bailout will help..but only the bastards who did get the option-arm loans. I can’t fault them for working “the system” but they fuct everyone else.

In the example above the NEW monthly FHA 30-year fix loan of $2,210.26 is only 200 bucks higher than the old option-arm payment of $2,053. It’s a no brainer. These borrows will do the switch in droves.

[PadreBrian]

I suspect the housing bailout will help..but only the bastards who did get the option-arm loans. I can’t fault them for working “the system” but they fuct everyone else.

In the example above the NEW monthly FHA 30-year fix loan of $2,210.26 is only 200 bucks higher than the old option-arm payment of $2,053. It’s a no brainer. These borrows will do the switch in droves.

[PadreBrian]

I suspect the housing bailout will help..but only the bastards who did get the option-arm loans. I can’t fault them for working “the system” but they fuct everyone else.

In the example above the NEW monthly FHA 30-year fix loan of $2,210.26 is only 200 bucks higher than the old option-arm payment of $2,053. It’s a no brainer. These borrows will do the switch in droves.

[PadreBrian]

I suspect the housing bailout will help..but only the bastards who did get the option-arm loans. I can’t fault them for working “the system” but they fuct everyone else.

In the example above the NEW monthly FHA 30-year fix loan of $2,210.26 is only 200 bucks higher than the old option-arm payment of $2,053. It’s a no brainer. These borrows will do the switch in droves.

[cr]

Yes, but not if they spread as thin as they could to afford that $2,210/mo payment before gas and food doubled, and their income didn’t increase in the last 3 years.

No to mention that assumes they actually earn what they claimed on their loan. Though I suspect liar loaners will be the last to try and requalify.

[cr]

Yes, but not if they spread as thin as they could to afford that $2,210/mo payment before gas and food doubled, and their income didn’t increase in the last 3 years.

No to mention that assumes they actually earn what they claimed on their loan. Though I suspect liar loaners will be the last to try and requalify.

[cr]

Yes, but not if they spread as thin as they could to afford that $2,210/mo payment before gas and food doubled, and their income didn’t increase in the last 3 years.

No to mention that assumes they actually earn what they claimed on their loan. Though I suspect liar loaners will be the last to try and requalify.

[cr]

Yes, but not if they spread as thin as they could to afford that $2,210/mo payment before gas and food doubled, and their income didn’t increase in the last 3 years.

No to mention that assumes they actually earn what they claimed on their loan. Though I suspect liar loaners will be the last to try and requalify.

[cr]

Yes, but not if they spread as thin as they could to afford that $2,210/mo payment before gas and food doubled, and their income didn’t increase in the last 3 years.

No to mention that assumes they actually earn what they claimed on their loan. Though I suspect liar loaners will be the last to try and requalify.

[PadreBrian]

If they made it for the last 3 years, 200 bucks a month more for a 30 year fixed is doable.

For the people with option arms who weren’t able to make it to Oct 08, then they have been weeded out. We’ll know by February how many people are converting to the new FHA 30 year fixed loans.

[PadreBrian]

If they made it for the last 3 years, 200 bucks a month more for a 30 year fixed is doable.

For the people with option arms who weren’t able to make it to Oct 08, then they have been weeded out. We’ll know by February how many people are converting to the new FHA 30 year fixed loans.

[PadreBrian]

If they made it for the last 3 years, 200 bucks a month more for a 30 year fixed is doable.

For the people with option arms who weren’t able to make it to Oct 08, then they have been weeded out. We’ll know by February how many people are converting to the new FHA 30 year fixed loans.

[PadreBrian]

If they made it for the last 3 years, 200 bucks a month more for a 30 year fixed is doable.

For the people with option arms who weren’t able to make it to Oct 08, then they have been weeded out. We’ll know by February how many people are converting to the new FHA 30 year fixed loans.

[Author]

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