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3rd Trimester
OMG. Mortgages and Irresponsible People
This woman called into a local morning radio show this morning and said that she tried to refinance her house. The bank lady told her (sarcastically) that she can't refinance because she wasn't irresponsible in the first place. She said that all payments have been made and were on time. The best thing this woman could do would be to skip a couple of payments. THEN she could refinance.
Apparently this is the kind of world we live in. Because I do the right thing and pay all of my bills, I get F'd over.
Thank you very much, Mr. President.
This discussion has been closed.
Re: OMG. Mortgages and Irresponsible People
i'm not sure what this has to do with the president.
but we refinanced in january, we were not behind, our payment was reduced and we got a little money back.
i don't know what *that* caller was trying to do or what the real reason was that she couldn't get refinanced.
Oh I hear ya! Don't get me going on this topic.
I have a rental house...yes the one where I am evicting people now....and the mortgage company won't even talk to me. It is an interest only loan that has always been on time so they feel I am in no need of help. I don't want that type of mortgage anymore but they do since they make more money off me that way.
Oh and did you see this story.....blood boils!
https://www.msnbc.msn.com/id/30148409/
Ok. In all fairness, I doubt she gave ALL of the details of her refinancing situation. I'll give you that.
But the host of the show also said that he tried to do the same thing and got the same response.
You know I've already seen a bumper sticker that says "Don't blame me, I voted for McCain"? People are so quick to point fingers.
That doesn't make any sense and what does it have to do with the president?
If you have good credit and equity in your home, you can generally refinance your loan. That woman needs to find another lender.
I think it greatly depends on the mortgage company. The one I am dealing with just sucks....
they won't update my address information, correct statements via escrow payments vs principal, cannot take electronic payments....I swear they are horrible!
I'm disgusted. Seriously. I'll go kick them out MYSELF!!!
Um, wrong. Anyone can re-finance, though not everyone should. There are certain programs in place for special circumstances, and not everyone qualifies.
As a homeowner who originally put down a sizeable down payment, pays on time and ahead every month, I was able to refinance this week with absolutely no hassle.
Let's stop pretending we all have the answers to the economic crisis and stop pointing a single finger of blame.
Yes, much better those homes sit empty in the meantime. Also, this affects me and my family very personally.
I'd venture the reason you can't refi has to do with the loan to value ratio, not your excellent payment history...
It worries me that you have an intrest only loan on yours and they wont refi you, because that is what we have (not by our choice, argh, and that is an entirley different story in itself) But we have to re fi before next december anyways.
People should be ashamed to accept something for nothing, hands down. I have to pay for my house. It's not fair in the least that these people can live in a house illegally when I have to work for mine. And a HOUSE is not a right. Stay with friends or family, rent an apartment...do SOMETHING. A house is not a right no matter how you spin it.
I'm sorry for your family and anything that has come of this economy, but it's illegal. Find another way.
What irritates me about that story is that the renters I have lined up for May were foreclosed on because of divorce. Her ex took over the house and stopped making payments to mess up her credit. WRONG! Then she tries to work with the mortgage company to get the house back up to date and they tell her all or nothing. She can't pay 4 months late payments, they won't let her refinance since now her credit is crap thanks to him so she has to rent from me. Yes I am grateful to have a renter but this story happens more than everyone thinks.
So now you have a house sitting empty when the family that loved it was trying their best to keep it. Or as that story tells, you have a family left on the street only to be replaced by people who have no rights to live in the property.
It is all so messed up!
I definitely do not believe that this caller was telling the entire story. I am an attorney for a federal agency that deals with these re-fis. There is more required to qualify for them than just being behind on your payments (and for FHA insured loans a similar option has been available since April 2000).
From the banking industry's perspective, the purpose of these programs is to prevent losses due to foreclosures. They are not concerned about helping these people stay in their homes, or have more affordable payments, which is why they are not willing to ignore low credit scores or low or negative equity for borrowers who are current on their payments. They are making money.
She's referring to parts of the stimulus package that allow people to refinance their homes at much lower rates if they are behind on mortgage payments. We are currently refinancing, and according to the administration's stipulations you only qualify for the MUCH lower refinance rate (we're talking in the 4% range) if you are on the verge of foreclosure, and your mortgage is more than a certain percentage of your yearly income.
Although my husband has gone back to school and we are currently living on a single salary (mine), and our mortgage is now DEFINITELY way over their income percentage qualification, we are unable to refinance at that lower rate. Apparently we are too responsible and always pay our mortgage on time.
Maybe that's not how they thought of it when they created it, but the way it is set up now, it will pretty much effectively cause people to stop paying their mortage so they can qualify for the lower rate. Doesn't make any sense to me...
Not true.... my In-laws have perfect credit, tons of equity in their house and they were told the SAME THING by their mortgage company. That if they wanted to re-fi they would have to miss a couple payments in order to do so cuz since they made their payments on time and weren't "struggling" they didn't qualify.... It's a bunch of BS!
The programs that have been added as a result of the stimulus program do not forbid banks from originating re-fi's in the same manner that they have in the past. It is true that people who are current on their payments will not qualify for these special programs for people on the brink of foreclosure or other special programs for those facing foreclosure offered directly by the banks without government involvement, but these programs are not the only avenue to re-fi.
We were also told we couldn't re-fi.... we don't have enough equity was their excuse. Instead, we did a modification. Which now has royaly screwed us. We have nearly perfect credit and we went to buy a new car this week and Ford Credit wanted to deny us because when you do a modification they give you 3 months off your mortgage payments- so it looked like we were behind- even though we don't owe that money and it's been modified already. And... the mortgage co had the papers back in Jan, and JUST sent them back to us to be re-signed and notarized because they made a typo. It's APRIL!!
I agree- it has to do with the mortgage co.
We ended up getting our new car but we spent 4 days allll day long trying to get a hold of someone, ANYONE, at the mortgage co that could fax Ford a letter to let them know that we were not, in fact, delinquent. Complete BS.
I realize that, but they weren't trying to do any special program they just wanted to simply re-fi and that's what there bank told them... They were shocked and confused; cuz they have waited three years to pay down on their principal so that they had a good amount of equity in their home.