The Mortgage Modifications

[Gerry Clinchy]

http://www.nytimes.com/2009/03/05/us...html?th&emc=th

The NY Times article lays out the predicament of the people who will not qualify for the program, high-end mortgages.

While I don't agree with borrower #2 that his balance should be reduced, I find it hard not to agree with borrower #1 who is asking for "temporary" reduction in his mortgage payments until his income can recover.

If the lender were to cooperate with #1, it could continue to receive cash flow and eventually come out decently when the economy recovers. That could, indeed, be better than taking a huge loss on the loan by putting the property into foreclosure.

Unless there are specific laws precluding the lender from making such discretionary decisions, it seems like a viable solution to borrower #1 and the bank. Borrower #1 is not asking for forgiveness of his debt.

If there are specific banking laws that conflict, perhaps that can be handled in some legislative way?

Are the banks more willing to NOT cooperate with these borrowers because they figure they will be compensated for their losses by more government money?

[Julie R.]

Some of the banks have such morons working in their loss mitigation depts. they deserve to go under. I contacted GMAC which holds a lien on a nice parcel of farmland with a toxic black hole on it (from my house fire) and the, ahem, Democrat in the LM dept. subjected me to a half hour lecture on how much his family lost in Katrina and how I should stop whining. They turned me down for a payment reduction because, interest rates were lower than on the origination date of my loan (but it still went up $400 a month Oct. 1, because it could according to the documents). This MORON then proceeded to tell me the payment must've been my EX-crow account increase (even though I do not and never did have an escrow acct. since I pay my own taxes and insurance).

Now mind you, I was well aware that my payment would adjust since it was a LIBOR loan and I'd started contacting them well before the house got struck by lightning but the wonderful intelligent folks at GMAC kept telling me that my rate would surely go down as interest rates were falling (yeah right).

ALL I asked was that they freeze my payment to the old rate until I could get the house rebuilt as my income would then increase $2500 a month. We had 2 houses on the farm, one rents for $2000 a month and I got $500/mo from boarded horses. There's no water at the barn because the well was on the burned house elect. and the well holding tank was in that house. Well, no, sorry, I guess a house fire didn't qualify as a 'loss' as I was current on my mortgage.



If I was a minority single mother crack whore with multiple children sired by different baby daddies no doubt I'd have a 2 percent fixed rate and a portion of the loan 'forgiven'. In fact I know a crack slut that "invested' in a bunch of condos and she & her husband have terrible credit, yet she got her GMAC mortgage on an investment condo reduced from 1800 to 1100 a month. That's one one they kept, they quitclamed the other 3 back to the banks they were so upside down. My point is this, why is a real honest to god loss (and a huge one I might add) NOT worthy of these grand mortgage forgiveness programs????

I did have insurance, but by the time we get the rest of this mess cleaned up I might be able to afford a double wide. Maybe I'll just start selling crack!

[WRL]

Some of the banks have such morons working in their loss mitigation depts. they deserve to go under. I contacted GMAC which holds a lien on a nice parcel of farmland with a toxic black hole on it (from my house fire) and the, ahem, Democrat in the LM dept. subjected me to a half hour lecture on how much his family lost in Katrina and how I should stop whining. They turned me down for a payment reduction because, interest rates were lower than on the origination date of my loan (but it still went up $400 a month Oct. 1, because it could according to the documents). This MORON then proceeded to tell me the payment must've been my EX-crow account increase (even though I do not and never did have an escrow acct. since I pay my own taxes and insurance).

Now mind you, I was well aware that my payment would adjust since it was a LIBOR loan and I'd started contacting them well before the house got struck by lightning but the wonderful intelligent folks at GMAC kept telling me that my rate would surely go down as interest rates were falling (yeah right).

ALL I asked was that they freeze my payment to the old rate until I could get the house rebuilt as my income would then increase $2500 a month. We had 2 houses on the farm, one rents for $2000 a month and I got $500/mo from boarded horses. There's no water at the barn because the well was on the burned house elect. and the well holding tank was in that house. Well, no, sorry, I guess a house fire didn't qualify as a 'loss' as I was current on my mortgage.



If I was a minority single mother crack whore with multiple children sired by different baby daddies no doubt I'd have a 2 percent fixed rate and a portion of the loan 'forgiven'. In fact I know a crack slut that "invested' in a bunch of condos and she & her husband have terrible credit, yet she got her GMAC mortgage on an investment condo reduced from 1800 to 1100 a month. That's one one they kept, they quitclamed the other 3 back to the banks they were so upside down. My point is this, why is a real honest to god loss (and a huge one I might add) NOT worthy of these grand mortgage forgiveness programs????

I did have insurance, but by the time we get the rest of this mess cleaned up I might be able to afford a double wide. Maybe I'll just start selling crack!

Divorce your husband (if you are married) and start pumping out babies. Then you'll be "worthy" of some federal money.

WRL

[Raymond Little]

Julie you better do somehting fast since the Demorats just pass the CRAMDOWN bill this afternoon on party lines. It will now be possible for bankruptcy judges to tell the lender what the house is worth and how much the slug can pay them back every month. Basically, those of us
with credik will be paying higher intrest rates to make up what they have
to write off the books.

Sum thin for Nothin Regards