This was in "RISMEDIA" this morning. It's just the link but can be passed on to clients and friends. It still sounds better than it is. Most of the people who are upside down in there property are way above 5% so it doesn't help them. I don't think it's punishment either way but when someone is that upside down and there having problems with making the payments it might be time to take the loss.
1. Of the people who have been saved in the last year it is my understanding that most of them are already in trouble again.
2. If your upside down and the bank reduces your payment by giving you a 40 year loan (which I think they would do before taking a loss off the top) your going to be WAY upside down.
3. From a lender stand point, and I'm no lender. I would think that the cost of the foreclosure would more than make up for the difference when you look at the economic side of the loan. If you foreclose you might lose 40%, if you take a hit up front and then extend the term to 40 years what is that money going to be worth to you in the end, not much I would think.
Just my thoughts on it. I will continue trying to help every one out because no matter what in 5 years were going to look back with wise eyes and carry on.
Brady
New Forclosure plan out
;)
;)
Brady..families with affordability issues are a sad state of affairs, but to comment on the thought that 5 years from now we will see this whole process differently. More millionaires were created during the great depression than any other time (up till the high-tech millionaires of the recent past) in history.