Thank you Ron Withers.
Everyone with an interest in the FHASecure program should read this post by Ron Withers. Ron's post is the most thoughtful analysis of this matter I have read.
WHO'S IDEA IS THIS THING ANYWAY? I do not believe that the staff that came up and the officials that approved this rinky-dink plan has once thought of the consequences of only helping consumers who are 2 months behind in their payments. By the way, where did the "2 months" come from? Most conventional mortgages may accelerate and become due and payable in full once the home owner becomes 30 days late. Is the government capable of considering consequences of anything it dreams up? It would appear not. "Just do something" seems to be as far as they can think. Get a photo-op. Have a press conference. Drag the President of the United States out to applaud the plan. We know he is not one to consider consequences of one's actions.
WHAT WILL HAPPEN WHEN THESE HOME OWNERS BECOME 2 MONTHS BEHIND IN THEIR MORTGAGE PAYMENTS? Anyone who believes that the government is doing consumers a favor with the new FHA initiative might want to consider the damage this plan to do to consumer credit for the desperate folks who have no place else to go.
I have been ranting and raving about this "initiative" since first reading it. What a disaster. Don't they know that getting two months behind in their mortgage payments will follow these otherwise credit worthy home owners for years to come. A mortgage delinquency or foreclosure is the absolute worst thing that a consumer can have on their credit report. Now the government is telling people to get behind in your mortgage or lose your house. What nonsense.
The ramifications are myriad and include problems with or higher costs for:
- home insurance
- automobile insurance
- job applications
- rental applications
- retail consumer credit
- checking accounts
The government have for years been followers and not leaders. They have been fixers and not prevention. They have been responders, not defenders. They are worse than nothing. They are often dangerous to our health. What about help for home owners who are notbehind in their mortgage payments? Do the employees at HUD have the slightest idea of the embarrasement and degradation that consumers have to face to ask for government help? Does their predicament have to be compounded by ruining their credit?
This initiave is so grossly incompetent and detrimental to home owners, the staff that dreamed it up should all be fired. On what grounds should these government employees be fired??
They should be fired for stealing the dignity of American citizens.
;)
Links;)
Tags (Tag Cloud);)
Archives
Great one! I have a client who is freaking out over a balloon payment due in two years (already). He can't get any assistance from the lender nor be considered for a short sale because his credit is beyond perfect at the age of 23!