Making Home Affordable

Real Estate Agent with The Lewis Team at Keller Williams Cal BRE #01352522

Making Home Affordable 

San Diego Real Estate Blog   

I think "Making Home Affordable" the title and the name of the web site have it all wrong, it's supposed to be "Buy a Home You Can Afford" but most things right now in the world are either upside down or just plain wrong.               

I checked out the Obama led web site "Making Home Affordable". The standard Homeowner's HOPE Hotline mantra with the HOMES of HOPE 888-995-HOPE number in red to get you to call for urgent help. This government has hijacked the word HOPE from day one and probably won't stop until they've moved on. Which is HOPEfully soon. Not that the next elected group of thugs and profiteers will do much better ... I'd settle for doing nothing than the direction we're heading now.                         

It was the HOPE of homeownership for many who should never have qualified for the loan that drew them into this burden that now is destroying their lives .... THE MORTGAGE PAYMENT. A HOPE fueled by GREED that lent money to anyone with a faint heartbeat with little regulation and little to
no verification of the homeowner's real ability to pay it back after the ARM would readjust. Lenders were making money hand over fist and could sell the note quickly on Wall Street to a sea of buyers, so why should they care to verify or tighten up on their lending practices. Now the banks and mortgage holders are losing money hand over fist as taxpayer's bailout them out as well as our government and their buddies...... hand over fist.  

The printing presses ($100 machines) are rolling at the Department of Treasury and the money going in every direction imaginable except to where it needs to go. The cost "PAYBACK" is left to our children and their children and so on..... while the baby boomers will have their nest eggs refilled with government pork, $4,500 car buying credit and free healthcare. WHOOOOPI. One of the saddest parts of this whole mess is putting the burden of this generation's foul-ups on the children and their children. Well I guess they're doing what they like to do, borrow and spend and
expect someone else to pay or somehow get out of it. Their best answer is to pin it on the kids because they don't have a voice, YET!                  

HOPE. I used to think HOPE was something like a wish, a dream that you wanted one day to be fulfilled, something in your life or in another's life that would happen to bring joy into it. Now HOPE is a slogan, a word used by agenda pushers to play on people's emotions and to get them to go in a specific direction. After all, who doesn't want HOPE? Right?

Back to the web site .......

 On the home page of this web site it asks

Are You Eligible? Please use the self-assessment tools provided on this websiteto see if you are among the 7 to 9 million homeowners who maybe able to benefit from Making Home Affordable.

Right below this is a "Find out if you are eligible" button.

The next web page will ask you to choose if you want to see if you are eligible for "Home Affordable Financing" or "Home Affordable Modification". Select the one that best fits your desire.

Under "Home Affordable Financing" you have to answer YES to every question to be eligible. That means that you own a 1 -4 unit home, your loan is with Fannie Mae or Freddie Mac, your current on your mortgage payments and "the kicker"-  you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house. Remember that last question asked about first mortgage only, not first and second. If you answered yes to all of these cross your fingers and toes and HOPE.

Under "Home Affordable Modification" you also have to answer YES to every question to be eligible. That means your home is your primary residence, the amount you owe on your first mortgage is equal to or less than $729,750, you're having trouble paying your mortgage, you got your current mortgage
before January 1, 2009, and your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) more than 31% of your current gross income? HOPEfully you can answer YES to all of the questions and then there's HOPE.

I don't want to give a sense of false HOPE to troubled homeowners so I want to be clear about this. Please try and use this web site to see if they can help you. From what I have seen in the San Diego area including Chula Vista is that most homeowners that purchased a home in the past 1-4 years can't truly answer YES to all of the questions in either category. The ones that can are still only eligible for the Making Home Affordable program.

Most of the homes in many neighborhoods in San Diego County are short sales. This means that there was no loan refinancing or loan modification for the homeowner that allowed them to successfully stay in their home. If there was they would not be short selling the home, and many are short selling their homes and condos. Some truly just didn't try, shame on them. Most are just way upside down in property value and can't make the monthly payments since the ARM readjustment or loss of job.

Its simple math, let me show you;

Paid $800,000 for home ... worth $500,000 - why do I want this home?


Monthly income $5,000.... house payment jumped to $4,900 - need to eat!

These short sale listings will either be sold short or be taken back by the bank through a foreclosure
and end up on the market as a Bank Owned REO. I have spoken with many homeowners who just want to get out of their homes or condos and just move on. They want to close that door in their lives and open the next one. The choice of keeping a home that has decreased in value 40% in 3 years and a monthly mortgage payment that is just not possible to pay is destroying families.

I have met many that have said "enough, I'll take the credit hit and short sell my home or let the bank foreclose on it" and they have. I will always ask them if they contacted an attorney and a CPA to go over all of the ramifications of both. This is essential if the path of short sale or foreclosure is in any ones future.

I HOPE this review of the Making Home Affordable web site helps you.


Mike and Dawn Lewis - Realtors in San Diego CA - The Lewis Team at Keller Williams

If  you need help buying or selling a home or condo in the San Diego area make sure you contact us we're your San Diego Realtor.


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Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Great post Mike.  It's just insane how easy they were giving loans to people who could not really qualify.  Jumbo, interest only loans, with Hugh payments, Neg Am loans that got out of control!!!  Why don't we hear about the gov't officials who were raking up the dough, I thought some of them were supposed to be on trial or something.   All we hear about in the news is MJ, that professor who got arrested and Obama having a beer with them!  Yikes!

Jul 29, 2009 06:21 PM #1
Mike Saunders
Lanier Partners - Athens, GA

Mike - and make sure that you use the .gov site. The admin forgot to pay the $7 for the similar sites with different extensions and they were picked up by some other people trying to make a buck off of this, immitating the .gov site but charging for their services.

Jul 29, 2009 11:45 PM #2
Judy Jennings
The Green Company - Ashland, MA
Broker - The Lanterns at Warren Woods - Ashland MA

Mike - Very well written and detailed post. It is amazing how certain words that are now "slogans" have lost their true meaning and do stir the emotions instantaneously.

Jul 30, 2009 12:29 AM #3
Brian Griffis
Realty Choice - Springfield, MO

Don't worry about our children Mike.  You think they are not going to do the same thing and push the debt on down to their children?  Of course they are.  And why worry about all the mortgages.  When hyper inflation comes, that $300,000 you owe on the house won't even buy a cup of coffee, so imagine how easy your mortgage will be to pay off!  Then the government can give us a  $10 trillion cash for clunkers rebate and everyone will be happy.  Oh happy day.

Aug 02, 2009 02:12 AM #4
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Mike and Dawn Lewis

The Lewis Team at Keller Williams in San Diego CA
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