Question by WinonaGal: With this new aid for defaulted mortgages, how might things work?
If I defaulted on my mortgage and tried to refinance and my home has depreciated in value and I can’t qualify as I would then owe more than that house is worth, I could be helped by this new thing Obama announced.
So, if I understand things correctly, I could get a loan for a better rate, reducing my payments to an affordable level, right?
I’m confused, though. Does this mean the government pays off a part of my house as well so that I will then qualify? If that happens and my house then increases in value if the market corrects itself, do I get that money or does the government get that money?
It’s “our” money being spent, so would the US treasury get a return on it’s investment? Or, is it simply a gift? Or, is it just a re-write of the loan and I would still owe the same amount of money as before and my fluctuating home value is my issue and no one pays me to make up for that?
Questions….can you clarify or does anyone really know yet how this thing will work?
Just to clarify, I don’t need help. I’m just trying to understand this thing. We pay our bills, work hard and I’m proud of that.
I’m wondering about the home value though. Wondering if I did get bailed out and then the market corrects itself and my house value goes up again, would I get to keep that money? Doesn’t seem fair, seems like it would be “our” money not the person who get’s bailed out’s money.
Best answer:
Answer by Bibigirl
Contact your bank and/or mortgage company. They know your situation better.
What do you think? Answer below!
Contact your bank and/or mortgage company. They’ll lie through their teeth to you.
This bill will do for you exactly what the last stimulus package did for our economy, which is jack! Sorry to be the bearer of bad news, but regulating banks is a socialist left wing effort to take over slowly, but surely, not a way to promote freedom and democracy.
This is something that I was wondering about too. I’m guessing that there will be a short time limit where you can’t sell the house–but that’s only a guess.
My home has lost 53% of its value in the last three years. However, like you, we pay our bills and aren’t interested in welfare at the expense of other tax payers.
I can definitely see the opportunity for fraud of the tax payers’ money here–and I’m sure that criminals can see it too.