Comments on: HUD Chief Admits Hope For Homeowners Is A Failure

By: Scott

Scott — Sun, 28 Dec 2008 01:16:58 +0000

All we need is a subsidized rate down to 4.00%, just have a recapture when the home sells IF THE HOME APPRECIATED. Just pull the old farm home program off the shelf and dust it off, but without the red tape and property population requirements. Make it for purchases and refinances, not limited to first time buyers. If you purchase a foreclosure that passes the property underwriting for collateral then the rate is 3.25%. I have written to some politicians but have had no takes for lunch to discuss this. It is so much cheaper than the bail out. It will make home buying popular again, like it was from 1996 to 2003. They should even give a 1 % selling bonus to the agent and a $600 bonus to the loan officer if it is a foreclosure that pulled full price. HUD needs some new blood and maybe someone that beat the streets as a loan ranger would be a good start .

By: Carl Pruitt

Carl Pruitt — Sun, 21 Dec 2008 04:33:41 +0000

Just my $.02….I have expressed elsewhere on the site that I would be happy to see FHA used to finance the new buyers purchasing the less expensive foreclosures as prices fall. I’m not happy at all with FHA being the “go to” program for saving people from foreclosure. I’m just trying to point out that Congress didn’t pass a bill that made any sense by their own standards. It just served to get people’s hopes up for no reason and give politicians the chance to thump their chests a little.

I’m trying to convince the people in trouble to move on and quit hoping FHA will be the answer.

In the case of the PMI payments, they should cover 20%-30% of the loan balance, but the MI companies are going bankrupt left and right with the rest of the industry so it isn’t a sure thing.

Those people who were stupid enough to buy a home based on 1% or 2% introductory rates will just have to pay the price of their mistake. A home is no different from any other investment in that if you don’t make the right calls, you can lose your money. The period of time when people were allowed to use the introductory rate to qualify on ARMs didn’t really last that long. Long before it was made a requirement, most lenders had switched to using a higher rate, if the not the highest possible rate to qualify. The problem was that many of those people were getting stated income loans and lied about their income in the first place. There are quite a few people over the last few years though, whose introductory rate was already higher than today’s 30 year fixed rates and they have been making their payments on time who could use a “streamline” type refinance program.

It is a complicated problem. The only real way to fix things is to quit trying to avoid taking the medicine. Delaying price decreases just prolongs the agony.

By: Brent

Brent — Sun, 21 Dec 2008 04:10:14 +0000

1) what happened to the PMI payments that were made in the last 5 years? weren’t they supposed to be an insurance to protect the banks against foreclosures?
2) if someone didn’t pay on their last mortgage, what makes anyone think they will pay on a “new” mortgage? if they had an ARM and the rate “righted” to today’s numbers, and they were only able to make the payments on the “INTRODUCTORY” rate of 0, 1 or 2%, in order for them to have a note that is affordable now would be to discount the note by more than 50%! Shouldn’t they have purchased a home at that price back then?