Am I reading this right????

By
Real Estate Agent with Keller Williams

 I'm not an attorney, and I may be miss-interpreting this measure in the 700 billion bailout bill, but it seems if we just stop paying our mortgages, we have a chance to get a lower interest rate and/or a lower principle on our loan.  It also looks like the government will now be in the buisness of determining property value...How in the hell is this fair to all of us who actually act responsibly in paying our debts? Someone with more expertise than myself please tell me if this is how you read this.

 

GENERAL.-To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets ecured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.


(2) MODIFICATIONS.-In the case of a residential mortgage loan, modifications made under paragraph (1) may include-
(A) reduction in interest rates;
(B) reduction of loan principal; and
(C) other similar modifications.

Yes, in the quest to "preserve homeownership" at all costs, it appears the government will be determining the value of homes directly in the marketplace - not only reducing interest rates but also loan principal.

 

SEC. 124. HOPE FOR HOMEOWNERS AMENDMENTS. Section 257 of the National Housing Act (12 U.S.C. 1715z-23) is amended-
(1) in subsection (e)-
(A) in paragraph (1)(B), by inserting before ‘‘a ratio'' the following: ‘‘, or thereafter is likely to have, due to the terms of the mortgage being reset,'';
(B) in paragraph (2)(B), by inserting before the period at the end ‘‘(or such higher percentage as the Board determines, in the discretion of the Board)'';
(C) in paragraph (4)(A)-
(i) in the first sentence, by inserting after ‘‘insured loan'' the following: ‘‘and
any payments made under this paragraph,''; and

(ii) by adding at the end the following: ‘‘Such actions may include making payments, which shall be accepted as payment in full of all indebtedness under the eligible mortgage, to any holder of an ex6
isting subordinate mortgage, in lieu of any future appreciation payments authorized under subparagraph (B).''

Robert asks: "Is this about renegotiating mortgage rates of existing mortgages? Did I just get screwed for paying a point to lock in 5% fixed rate when my %^&*# neighbor went with no points adjustable rate? How the hell is this fair? I want his new rate and MY POINT BACK!"

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Groups:
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Tags:
bailout bill
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Rainmaker
366,695
Kevin Robinson
High End Vacation Homes

Lets all just file BK and stop making payments. This whole thing has me pretty mad.

October 03, 2008 11:55 PM
Rainer
41,054
Rick Turner
Puts People In Their Places!!
Key Realty

Do you have the phone number of the "commrade" that we are to call when preparing CMA's for new listings or when we write offers?  I can't wait to have a government regulator tell us that the accepted offer that a qualified buyer wants to pay for a home is too much or not enough because of the manipulations that they have done on another home around the block... The free market place as we know it, has been cast aside.  We are about wake up to a brave new world where the government is monitoring and manipulating our every move!

October 04, 2008 12:17 AM
Rainer
70,854
Susan McQuaide
Keller Williams

Michelle - We have a similar situation - we closed on new construction in Feb 08 and then the bottom really started falling out.  The builder suddenly has a many new incentives and discounts.  Ticks ya off!

Kevin - I don't think I would be nearly as PO'd about the bailout if they would have at least fixed the root of the problem, which is Fannie and Freddie and the subprime loans, which as far as I know, are still available.  I also want the people responsible for encouraging these loans and protecting Fannie and Freddie held accountable - and we all know who they are!

Rick - There is no doubt this will have a very negative effect on us - it is truly appalling.

October 04, 2008 06:30 AM
Rainer
38,759
Michelle Chamberlain
Suburban Philadelphia Mortgage Broker
Above All Financial Services -Pennsylvania Mortgage Broker

Susan,

Subprime loans aren't really available anymore. They are now called FHA.

Michelle

October 04, 2008 01:40 PM
Rainmaker
563,876
Mike Saunders
Lanier Partners

Susan - this may be the bill that kills the real estate business, or, at least the lending business. If a lender can't be assured that they will get their principal back, what is the incentive to lend?

October 04, 2008 04:24 PM
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Rainer
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Susan McQuaide

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