I had the chance to meet with State Represenative Randy Hultgren's Office two days ago. We spoke about the real estate problems. I had told them that round two is coming and it's going to be bigger than the first bunch that hit us. Needless to say, I really think that it's going to hit hard.
The government needs to allow:
Rate and term refinances need to be allowed no matter what the loan to value is. I was just helping a lady trying to get refinanced to a lower mortgage rate and her house is upside down. LTV? 136%. The government says no. The bank says no. She hires me as an attorney and we climb up the ladder and still no, no, no. However, B of A says that if she would go into default and miss three payments then she could get a rate in the 2% mark.
ARE YOU KIDDING ME?
She is making her payments fine. She's cash strapped, but doesn't meet the qualification of being in financial hardship. Her rate, though, is well over 6.25% and she wants a market rate. Why not give it. Give it with a price hit or an overlay. But B of A says that she needs to miss some payments and then you and I as a taxpayer will subsidize her rate down to somewhere in the 2% range. She doesn't want to be a strategic walk away. She has morals. She signed her name to a contract and wants to make the payment. In fact, she's never missed a payment.
There's something wrong with this picture!
Comments(14)