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Anybody got a bandaid?

Good news for a small few --- not even a bandaid for most! As I wrote in a previous post Who will get help? there seems to be a problem with coming up with a plan that will really help the foreclosure problems. I mean we are hearing that there are plans to help but then you see where they cut out the majority of people that really need help with all the criteria requirements that must me be meet before the homeowner can get help -- meanwhile you have numerous amounts of owners that are being totally ignored and this is not fair.

There are people right here in the Stockton, Modesto and Sacramento areas (San Joaquin/Stanislaus/Sacramento counties ) (as well as all over the US) that are now homeless and facing a 1099c when it comes time to do their income tax returns. These people where served a Notice of Default, contacted their lenders for help and was turned down, listed their homes for sale and in some cases the home was either sold at short sale or at the county court houses - either way the homeowners and their families are out of a home. There was no other solutions or plans for them. Where are they now?

This is why it is only good news for some:

The two plans that I know of that are on the table that are supposed to help the owners and the economy are: 1) FHAsecure which single out just a few that have good credit and some equity in their home and 2) the latest plan: - there will be a freeze for five years on those borrowers that have ARM that is due to adjust upward - if they got their loans between January 2005 to July 2007. This latest plan is supposed to help the subprime borrowers at are likely to result in foreclosure in the future. I do not understand why the concern is not shared on the ones that have already fell by the way side due to the same problem? What is the plan to help those people out? Or is there a plan for them? . The two plans that have been presented have such guidelines that eliminate most - is that fair?

THE TYPES of borrowers/owners that are affected by this market meltdown:

Owner type 1: Those who already have lost their homes and now either are homeless or living with friends or relatives or worse. These owners have lost everything including their home and family. What about and where do they fit into the "PLANS". What help will they get?

Owner type 2: Those that have had a Notice of Default recorded on them and are now in foreclosure countdown right now. Have contacted the lenders and have been told that there is no owner assistance for them. Some have their home listed for short sale with or with an offer. Even if they get an offer, there are no guarantees that the offer will be accepted.

Owner type 3:Those owners who can't afford their mortgages even if rates stay steady.

Owner type 4: Those that fall within the 2005 to July 2007 timeframe, but do not meet the criteria of that plan or even the FHAsecure plan.

Owner type 5: Those who can keep their homes if the maturity date of their mortgages were extended or the interest rates remains at the "teaser" rates.

Owner type 6: Those who can continue to make their mortgage payments even if rates rise.

****************** UPDATE*********************************************

Which adjustable-rate mortgages are affected? To qualify to have their interest rate frozen for five years, home owners must have received a loan sometime between Jan. 1, 2005, and July 31, 2007, and be facing a reset of their interest rate sometime between Jan. 1, 2008, and July 31, 2010.

Who qualifies for this deal? Home owners who haven't missed a payment, but who might if their mortgage resets. Those who can't afford the higher payments, and who have credit scores below 660 and less than 3 percent equity in their homes, will get the biggest break from the lenders. People who are financially secure enough to pay the higher mortgage payments don't qualify.

Do owners of second homes or investors qualify? No. The plan excludes people who don't live in the property that's facing foreclosure.

Why didn't the plan go further? If home owners are going to pay less on their mortgages than investors expected, then people are going to lose money. Not all of those people are fat cats. Potential losers include pension funds for teachers, firemen, police and an array of mutual funds whose clients are individual investors

Comments Appreciated!

the Mother and Daughter Realty Team

Perfect Financial Solutions - We care about our clients Real Estate Needs
Tel.: 866-750-8282
Fax: 209-879-4601
http://www.motheranddaughterrealty.com

Rosemary Brooks

Patrick Williams & Associates

the Mother and Daughter Realty Team

PH: 866-543-0461

FAX: 866-815-1649

EMAIL: info@motheranddaughterrealtyteam.net

WEBSITE: www.motheranddaughterrealtyteam.com

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Posted by Rosemary Brooks -Mother & Daughter (866)-543-0461 on 12/09/2007 03:25 PM

Comments (8)

stockton, stanislaus, modesto, san joaquin, mother and daughter, rosemary brooks, short sale, foreclosure, notice of default

Originally posted at: Mother & Daughter Blog: Anybody got a bandaid?

This post has been included in California Information San Joaquin County, CA Information

8 Comments on Anybody got a bandaid?

DEC

2007

Lord have mercy ! Its a mess and it's not getting better. I son't think so.

Rosemary, This is such a difficult issue. I do feel for folks BUT why can't they afford their mortgage? Declining property values should have NO impact at all on the payments they agreed to pay when they financed their home. Did they finance with the sole intent of being able to refinance down the road? If so then they took a risk and they lost. Did they spend all their equity by refinancing several times over the last few years? If so, then why should we bail them out? I just don't get bailing people out at all.

I own right now 4 vacant rentals that I can't sell and I can't rent. But I will continue to do whatever I need to do to make my mortgage payments. I also drive a 9 year old car and have a $99 TV from Walmart. Most of the sellers I meet with that having problems can not say this.

Now having said all that, there are folks that could use some help. Not for making foolish or risky decisions but because of job loss or illness. Other than that......pay the price and learn form the mistakes made.

OK now I feel another post coming on:)

Kevin, so true a mess. When you're down to nothing, God is up to something is what I am depending on.

Bryant, I hear you in some ways but not many. I do agree that some just simply made bad judgement calls on their purchase and finance choice - no argument here on that issue. However, there are so many people that have already lost their homes because of the hardship - geniune hardships but there is no mention of them. They seem to get put into the pile with the bad judgement folks!

And yes there are people that lost because they were told they would be able to refinance in 2 years. They didn't do their homework to know that things don't always turn out perfect.

Opps! I forgot to say thanks for dropping by and I can't wait to read your post.

Rosemary, I do agree that there are folks that have lost their homes due to unforseen hardships. But isn't that just a part of life? We already have many programs in place to help folks including our Churches. I hate to sound so hard hearted but I too have lost properties to foreclosure and I have been through a bankruptcy. I didn't ask anyone for a bail out and in fact these unfortunate situations made me stronger and helped me to make better decissions later in life.

As a parent, I hate to see when my children go through difficulties but I let them go through them. It helps them to learn. I just feel we are given hardships for a reason.

I would much rather help people to rebuild than to prolong the enevitiable.

Bryant, true that we are given hardships for a reason. God is in control of that and yes hardships and experienes do teach us to be more careful the next time. And I too have more hardships and bumped heads than I care to share because I would probably start crying all over AR. I bet I could sit up with you on hard time experiences and I'd win if not come pretty close, so I know about disappointment and losing stuff and losing people. Sometimes I feel like the sign says " I know God promised he would not give me more than I can bare, I just wish he didn't trust me so much!" And I always tell my children, "when you're down to nothing, God is up to someone" but if there are opportunities to get help go find them.

My way of handling hardships -- is that I have to give it to God to handle because I can't. Now having said that.... If your thoughts are correct, then why help ANYONE? Let them all fall to the wayside -- they all made the decision to buy and it was a bad decision -- obviously. And if you start throwing out plans to help -- help them all. Now we all know the government is not going to be able to help EVERYONE, but my point was that the plans that they have introduced so far are picking and choosing by their terms and I still want to know what plans can they come up for the others -- the ones that might not exactly fit into the criterial they are using. ANd what about the ones that have already lost their homes.

Call it Holiday time or whatever, but I still feel that something should be done for that group of homeowners that didn't have the options that are being thrown around now and for those that don't fit the tight fit that these plans are singling out.I am just saying the thought process to come up with WHO they are going to help is wrong and not thought out.

Because if there is no help for the majority -- how much real help is it anyway?

I think I hear you saying just forget them -- they did it to themselves. Its cool to help the ones that fit into the "chosen few" and lets just move on????? My question: If its all just an experience of learning, why help anyone?

As a parent, you know you get into trouble if you help one of your children and not the others!!

OK Rosemary, Now I see where you are coming from. I probably didn't make myself clear. I agree the plan on the table is a "pick and choose" plan. I think any plan they come up with will have to have some kind of exclusions in it. And for that reason I don't think they should help anyone. I truly believe we need to let the market run it's course. Any kind of intervention will exclude folks and that's not right. Help them all(which they can't) or help no one.

When I went through my bankruptcy it was a very difficult time. Ours boys were 9 at the time I did everything I could to try and make ends meet. I even signed up for credit counseling for about a year and had all my bills consolidated into one payment to try and meet my obligations. I failed. My circumstances would just not allow me to get back on track so I filed for bankruptcy and was able to wipe my slate clean. For the next 10 years I was "cash only". These were some very happy times. Four of us lived in a 2 bedroom 1 bath duplex for 7 of those years. We were cramped but we made do.

This "hardship" motivated me to change my life and my way of living. I started looking for opportunities and TLW and I opened up or first business together. One thing lead to another and eventually I got into Real Estate and opened Tutas Towne Realty. I truly believe if I hadn't gone through this "wilderness" in my life I would not be where I am today.

Bryant, ok we are on the same page. I truly see your point now. We are thinking the same way. Its not nice to tease and/or punish and I feel that the government will do both and it is not fair to those that are left out of the pick.

I know what you mean about going through it and coming out stronger. Been there, done it and learn and am still learning from it. Glad to know things worked out so well for you. Some don't get it back that strong but do learn to appreciate the hard times.

I can remember telling my children so many times about the God having the big picture and things would work out. One time one of my daughters had a crisis in her life and I said those words and I never will forget the big tears in her eyes when she pretty much told me she didn't believe that it would be OK because she did not understand why it had to happen and I had no answer except to say "it was in God's hands and he does not make mistakes". She has since thanked me for those words as it did turn out OK afterall. Not the way she wanted it but it worked out.

Here is another way of saying it: "Sometimes we stare so long at a door that is closing, that
we see too late the one that is open." Alexander Graham Bell

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