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(former)FormerSanDiegan
ParticipantNice smoker analogy. It points out that the mortgage arena is not the only place where we subsidize stupidity (or bad judgment).
But, since you can comfortably afford the payment, I think it may be short-sighted to try to get a loan mod now, depending on the restrictions they might place. Why get a small chunk now, when you can get a larger concession in the future. It also will restrict your use of the property (e.g. you may not be able to rent it out if you want). I would wait another 12 months to see how far underwater you might ultimately be, then make a decision. Your best course might be to refinance or take a mod under Obama’s new program if it comes to fruition.
If I were you I wouldn’t walk now or take any loan mods until I can smell the bottom. Once you see how low things get you’ll get your best deal on a loan mod, refi, or whatever.
You should treat this exactly the same way as those who are renting with a comfortable monthly payment waiting for bottom before taking action and taking advantage of the market.
Participant[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.
It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?
EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.Participant[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.
It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?
EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.Participant[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.
It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?
EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.Participant[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.
It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?
EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.Participant[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]The version I read says:
The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.
“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.
It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?
EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.Participant[quote=92126_guy][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
[/quote]
FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”
[/quote]
Here is CNN’s take …
http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819
Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.
If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).
Participant[quote=92126_guy][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
[/quote]
FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”
[/quote]
Here is CNN’s take …
http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819
Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.
If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).
Participant[quote=92126_guy][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
[/quote]
FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”
[/quote]
Here is CNN’s take …
http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819
Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.
If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).
Participant[quote=92126_guy][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
[/quote]
FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”
[/quote]
Here is CNN’s take …
http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819
Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.
If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).
Participant[quote=92126_guy][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
[/quote]
FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”
[/quote]
Here is CNN’s take …
http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819
Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.
If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).
Participant[quote=carlsbadworker][quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
[/quote]But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
How many coastal homes with alt-A or other ARMS have loans that are between 80-105% of LTV and are less than 417 K ?
Anyone ?
For 90% LTV this implies a property worth 463K with a 417K loan. Seems to me that this might apply to people who bought in Mira Mesa or Clairemont in 2003-2004 with 0-5% down. Or those who bought at the peak with 20-30% down and are now looking at 95-105% LTV.
I don’t think it has any impact for those on the coast.
Participant[quote=carlsbadworker][quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
[/quote]But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
How many coastal homes with alt-A or other ARMS have loans that are between 80-105% of LTV and are less than 417 K ?
Anyone ?
For 90% LTV this implies a property worth 463K with a 417K loan. Seems to me that this might apply to people who bought in Mira Mesa or Clairemont in 2003-2004 with 0-5% down. Or those who bought at the peak with 20-30% down and are now looking at 95-105% LTV.
I don’t think it has any impact for those on the coast.
Participant[quote=carlsbadworker][quote=ibjames] So if your mortgage is $210,000, your property can’t be worth less than $200,000.
so.. it won’t work in california[/quote]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
[/quote]But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.
How many coastal homes with alt-A or other ARMS have loans that are between 80-105% of LTV and are less than 417 K ?
Anyone ?
For 90% LTV this implies a property worth 463K with a 417K loan. Seems to me that this might apply to people who bought in Mira Mesa or Clairemont in 2003-2004 with 0-5% down. Or those who bought at the peak with 20-30% down and are now looking at 95-105% LTV.
I don’t think it has any impact for those on the coast.
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