100,000 points.....a reflective moment.....

By
Mortgage and Lending with Seacoast Mortgage Corporation, RI (20021119LB & 20031576LL), MA (MC2107) & CT MLO 10920

100,000 points.  Sign of passion over this business? Perhaps I just love blogging? Enjoy receiving comments?   Look forward to the next client who finds me because of Active Rain? Or my intense desire to see us recover from this economic recession and see homeowner's STAY in their homes vs. suffer foreclosures or short sales?

 

I have blogged a lot about keeping the homeowner in their home and I am still passionate about developing a plan to do just that.

In summary, I propose

•1)      implementing new common sense underwriting guidelines for the loans which are eligible for refinance, but the subordinating lender refuses to subordinate or any refinance which "makes common sense" for other logical reasons.  In cases where "common sense" underwriting does not prevail, mortgage insurance is placed on the subordinate lien to make the 2nd lien holder feel comfortable to agree to the subordination.

•2)      forbearance of debt (not elimination) for the amount of the mortgage in excess of 95% of current market value for those borrowers which can demonstrate a hardship.  Why should a stranger be allowed to buy a home at a price the current owner can afford?   Forbearance of debt is better than selling the home, leading to large lender losses, deteriorating/unkept properties, and attorney fees.

•3)      allowing a streamline rate & term refinance for anyone. The FHA streamline rate & term program would be used.  This program includes placing mortgage insurance on the new loan.  For those who do not qualify due to poor credit as a result of applying for a loan modification or for any hardship reason, they too should be allowed to rate & term streamline refinance through the FHA program with mortgage insurance.

•4)      allowing a re-entry into home ownership for those borrowers who fell victim to the mortgage crisis and were not allowed any of these remedies.  FHA guidelines, which would include home buying education, can be developed which would allow for re-entry of the former homeowner. Currently, there are 10-15% less home buyers in the market due to foreclosures or short sales.  They must wait 4 years until they may qualify again.  Some of  these buyers should wait 4 years, but the former homeowners who suffered due to job loss  and were not allowed a loan modification should be allowed re-entry sooner than 4 years.

 

In order for this economy to recover, the homeowner MUST STAY IN THEIR HOME.  Please pass on this blog to anyone who may have a connection to leaders in the government or lending industry to implement any of these proposals.

Homeowners everywhere will THANK YOU!

Posted by

Ann Sabbagh, President

"The BEST compliment is a client referral: Thank YOUUU!"

Seacoast Mortgage Corporation

401-305-6906 or 508-243-1190

Residential & Commercial Financing

MLO10920

RIAR: teacher for "The Mortgage Course"; "Valuation of Commercial/Investment Real Estate"; "Reading Financial Statements"

 

"When you choose me as your mortgage consultant, you also choose a financial planner who cares about YOUR financial strength."

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Sandy Bliven 11/09/2010 03:21 PM
  2. Kathleen Ann Pacheco-Corbett 11/10/2010 03:28 PM
  3. Karen Hurst 12/04/2010 09:01 AM
  4. Diane Rice 12/04/2010 12:36 PM
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Rainmaker
648,639
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Ann, you did more with your reflection on a 100,000 points in the Rain than most people did, including me...You are actually trying to make a real difference. I just hope that the right people come across this. Your suggestions would actually work, if we could just rid ourselves of greed....

And congratulations on making it to 100k!

Nov 08, 2010 09:13 PM #1
Rainer
125,047
Sandra White
John L Scott Real Estate - Port Townsend, WA
Experienced Residential Resale Broker

Congratulations...that is something I will enjoy when I get there.  AR benefits all of us.

Nov 08, 2010 09:15 PM #2
Rainmaker
698,914
Lanre Folayan
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC - Washington, DC
How much is my Petworth DC House Worth?

I agree with William James Waltor Sr. If I knew somebody in the Government,I would e-mail this to them. But I did suggest this post for a feature. Hope people notice it. Great post.

Nov 08, 2010 09:22 PM #3
Rainer
130,403
Jason Channell
Diadem Property Inspections - Serving Southeast Michigan - Troy, MI
The House Sleuth

Excellent proposals! Maybe you should try your hand at politics!

And congrats on the 100K!

Nov 08, 2010 11:00 PM #4
Ambassador
1,577,636
Tammy Lankford
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Your Lake Sinclair Expert (706-485-9668)

I elect you.  When can you leave for Washington, D.C.  Common sence. 

By the way, congratulations on your points Ann, but more so on your journey here at ActiveRain.    Now I'm going to email your post to my Senator.

Nov 09, 2010 03:31 PM #5
Rainmaker
114,857
Ann Sabbagh
Seacoast Mortgage Corporation, RI (20021119LB & 20031576LL), MA (MC2107) & CT - Pawtucket, RI
President, Sr. Loan Officer

Thank you all for your comments!  I am going to continue to post these proposals with the hope they will get noticed and implemented.  It saddens me on a daily basis to see Americans lose their homes and there is little being done to help them stay in their homes.  Keeping homeowners in their homes will restore our economy and keep the lenders viable.  Several states are now using the bankruptcy courts to force lenders to perform principal reductions.  If everyone allows this, our banking system will either need a great deal of TARP money OR the banks will crumble.  Forebearance of debt must be instituted not reduction.  Thank you again for your comments!

Nov 09, 2010 09:53 PM #6
Rainmaker
184,784
Kathleen Ann Pacheco-Corbett
(FIRST Exclusive Buyer's Office Providence-RI) - Providence, RI
Realtor, RI-MA, CEBA, Master, e-Pro, ABR, ABRM, GR

Ann, a well thought out plan and great post to keep homeowners in their homes. I am saddened, too by so many families not having any viable options except to let the lender take the property and leave these families homeless and in search for apartments that they can not afford. I am going to reblog and get the word out to people that may be in a position to help.

I so agree totally Why should a stranger be allowed to buy a home at a price the current owner can afford?   Forbearance of debt is better than selling the home.

BTW, congratulations on reaching 100K

Nov 10, 2010 03:22 PM #7
Rainmaker
184,784
Kathleen Ann Pacheco-Corbett
(FIRST Exclusive Buyer's Office Providence-RI) - Providence, RI
Realtor, RI-MA, CEBA, Master, e-Pro, ABR, ABRM, GR

Ann, a well thought out plan and great post to keep homeowners in their homes. I am saddened, too by so many families not having any viable options except to let the lender take the property and leave these families homeless and in search for apartments that they can not afford. I am going to reblog and get the word out to people that may be in a position to help.

I so agree totally Why should a stranger be allowed to buy a home at a price the current owner can afford?   Forbearance of debt is better than selling the home.

BTW, congratulations on reaching 100K

Nov 10, 2010 03:23 PM #8
Ambassador
330,342
Karen Hurst
STONEHURSTREALTY.COM - Warwick, RI
Rhode Island Waterfront!

Hi Ann,

I hope you don't mind but I am going to reblog this post. I realize it was written a month ago, however, your ideas are similar to my own. 

These are some of the things that would actually help people. And I am speaking as a Realtor who makes my living listing and selling homes! 

It seems that people losing their homes has become so commonplace that no one notices anymore! 

 Yet this is still one of the most horrible things that can happen to a person or family.

 I will definitely support the Sabbagh Plan!! 

Dec 04, 2010 08:56 AM #9
Rainer
147,103
Deborah "Dee Dee" Garvin
W. J. Bradley Mortgage Corp. - Carlsbad, CA
WJ Bradley Mortgage Corp.

Ann,  I have to thank Karen for the reblog as I had not seen your post previously...and thank you for allowing another reblog in my area.  There is so much logic in your post that it seems amazing to me no one in Washington can figure it out.  There is a bill in the House to accomplish #3...it was proposed by one of our CA reps (his name escapes me at this point), but it has been stuck in committed for quite some time.  

I do agree with all of your proposals...but, IMHO, it is #4 that really makes the whole mess even worse.The fact that the guidelines are being stretched out for up to 10 years before a person who has gone through a foreclosure can own a home is insanity!  It is punitive and will continue to cripple the recovery of the housing market.

Dec 04, 2010 09:20 AM #10
Rainer
228,047
Diane Rice
Diane Rice, Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - South Holland, IL
SFR, SRES, CNC

I am SO FOR this.... had Karen not re-blogged this - it would have been overlooked by me and others.  I too have passion and excellent ideas to put in place that will be a solution to this crisis!  I will recommend this for a feature AND re-blog it.  Thank you for your unselfish act of bringing this cause to the attention of others rather than dote praise upon yourself for achieving 100,000 points.  I applaud you for it! 

Dec 04, 2010 12:19 PM #11
Rainer
228,047
Diane Rice
Diane Rice, Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - South Holland, IL
SFR, SRES, CNC

Hello again Ann.  Here is my RE-BLOG of your post: Diane's re-blog - pass it on! -

Dec 04, 2010 12:58 PM #12
Anonymous
Anonymous
JJ

Sorry, but I disagree with your proposal.

"Why should a stranger be allowed to buy a home at a price the current owner can afford? "

I'll answer this with a question. Why should the person living in the house have exclusive access to rebuy the house at a lower price? The house should go to the highest bidder who is able to purchase it. This is how markets work. No matter what you do to fight the free market, it always wins in the long run. Fighting the market is just fighting a recovery.

"In order for this economy to recover, the homeowner MUST STAY IN THEIR HOME."

This is just so not true. House prices are too high; they need to fall. New buyers need to be able to purchase a house on their own with sane interest rates (8%-9%) without being subsidized by the government (taxpayers). Yes, people who overpaid for their house will have to go back to renting; so what, that's life!

Dec 24, 2010 04:18 PM #13
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Rainmaker
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Ann Sabbagh

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