Paulson’s New Plan: A Cheap Mortgage for Every Home

• Report this Comment On December 04, 2008, at 5:56 PM, Bootluver wrote:

  <rolling eyes over and over again> More useless BS from the FOOLS....how much can we stand, maybe the truth would be nice for once..The Fed and the super rich are once again effing us over, the media says zip ( thats cause they are owned by the same that are effing us) analysts like the FOOLS don't think its possible LMAO and everyone just believes all this crisis is just an accident,,couldn't be a plan right? ohhh nooooo maybe you are right, we all are FOOLS!

  Boots, DE

• Report this Comment On December 04, 2008, at 6:13 PM, oscarp70 wrote:

  Stop being FOOLS! The big banks idea of loan modification programs is by extending the term of the loan. Great just what I need, to be in debt longer! A lower interest rate would help the homeowners but reduce the amount of money the big banks get. If government is going to give out low interest loans to their buddies at the bank why not homeowners. I do agree though that now everyone should get to refinance. Only those that are able to afford the new payments.

  STOP BEING FOOLS!!!!!!!

• Report this Comment On December 04, 2008, at 6:17 PM, TMFAleph1 wrote:

  Bootluver,

  Spotted any black helicopters lately?

• Report this Comment On December 04, 2008, at 6:20 PM, TMFAleph1 wrote:

  oscap70,

  Thanks for your comment. If you do a little research, you'll find that the loan modification programs contain a range of provisions, including reducing the principal amount, lowering interest rates or postponing interest rate resets.

• Report this Comment On December 04, 2008, at 6:30 PM, BeachExec wrote:

  Alex,

  I haven't had time to research this program yet. Do you have a good link?

  Will someone like me, who owns a home with actual equity in it, and a 5.125% fixed mortgage, be able to get a 4.5% re-fi under Paulson's plan? Or is it only for those who are under water and/or subject to a ballooning interest rate that makes their home now (predictably) unaffordable to them?

• Report this Comment On December 04, 2008, at 6:41 PM, TMFAleph1 wrote:

  BeachExec,

  The Treasury's plan to lower mortgage rates is still being formulated and could yet be modified (or even scrapped altogether). As far as the loan modification programs that private lenders are implementing, I assume they are targeted to those borrowers who are at the highest risk of default. I recommend you contact your lender for more information.

• Report this Comment On December 05, 2008, at 1:37 AM, mlaursen wrote:

  BeachExec, see you're thinking that they actually thought through the main details of the plan before announcing it. Apparently, they thought it was very important to get the word out as soon as possible to make sure to completely kill the mortgage market while everybody who was thinking of taking out a loan waits to see what they're going to do.

  I know that we've all been raised to show deference to our leaders, and they use big words and dress in suits and ties, but they have no clue what the heck they are doing.

• Report this Comment On December 05, 2008, at 1:40 AM, mlaursen wrote:

  Bootluver, I suppose you could be right about the crisis not being an accident, but I try not to attribute to evil what can be explained by incompetence.

• Report this Comment On December 05, 2008, at 10:18 AM, TMFAleph1 wrote:

  mlaursen,

  You chide Bootluver for wrongfully attributing to evil what can be explained by incompetence, and yet you are wrongfully invoking incompetence to explain this "announcement". The fact is that the Treasury never made an announcement regarding this latest plan, it was simply reported by the press. Our leaders don't have perfect foresight in dealing with this crisis and they have made and will continue to make some mistakes in managing it; however, they aren't the bumbling idiots you suggest.

• Report this Comment On December 05, 2008, at 11:37 AM, SteveTheInvestor wrote:

  Once again, the responsible get nothing except a higher tax obligation. The irresponsible, with their Option ARMS / ARMS get rescued. I understand the need to try and stabilize the market, but no one should walk away from a financial mess they created.

  At the very least, I hope those who are "rescued" or who have their mortgage adjusted/modified have a default placed on their permanent credit record. Maybe then it won't be so easy for them to repeat their stupidity in the future (and will save some taxpayer dollars).

  And while we are at it, Option ARM's need to be flatly illegal. If you need an Option ARM, you obviously can't afford the mortgage.

• Report this Comment On December 05, 2008, at 12:44 PM, catoismymotor wrote:

  Please remember to mind your manners on TMF. Items I see posted are bordering on being middle schoolish in tone.

• Report this Comment On December 05, 2008, at 1:07 PM, mlaursen wrote:

  Fair enough. It was leaked rather than announced.

• Report this Comment On December 05, 2008, at 11:06 PM, irishmanbob wrote:

  I heard about a week ago (?) on CNBC that as many as 50% (or greater) of the earliest conventional modified mortgage loans have again gone into default. Some comments like bringing people down to monthly loan-to-paycheck values of 38% (traditional values) are still too high. May have to drop it to <30%, as these people are also extended with credit card debt, car loans, etc... Clearly, the regulators weren't regulating.

• Report this Comment On December 05, 2008, at 11:59 PM, usafmp wrote:

  will private lenders start making mortgage loans? Will land contracts become common again? will communal living arise from all of this?

• Report this Comment On December 06, 2008, at 11:06 AM, jennert wrote:

  While I am instinctively and philosophically opposed to any government "fixing" of anything - let's get real, here. On a yield rate of 2.56% and mortgage rates of 5.5% and up, lenders are reaping roughly 3+% margins on the mortgages they loan. Historically, that margin would only be a difference of about 1.5% between the 10-yr. note yield and lenders' rates. How many dollars loaned to them and donated to the "stimulation" effort are going to be necessary to convince lenders to deal honestly with qualified home owners who will pay as contracted??

• Report this Comment On December 07, 2008, at 11:17 PM, rose4you wrote:

  What about this novel concept? Offer 4.5 percent re-fi mortgages ( NO cash-outs) to current homeowners with good credit. The extra money in our pockets each month would go back into the REAL economy,such as new cars, home improvements, etc. I know that if my current 5 3/4 % mortgage payment could be reduced by 200-300 dollars a month, I would be doing my best to keep the economy moving.

  Too bad if the banking/mortgage industry won't be pulling in those big profits anymore. This should be their ultimate penalty- FOUR PERCENT MORTGAGES!

• Report this Comment On January 19, 2009, at 7:01 PM, aetraulsen wrote:

  I think that Congress (and the Fools) need to get one of those offer letters from the banks. If I'm behind in my mortgage its because I don't have enough money every month...so how then am I supposed to make the "good faith offer" that they want you to make to activate your loan modification? They're just sending these letters as a token gesture.

  I tried to contact my lender (rhymes with Nationwide) a number of times. My cousin, who's an attorney, turned me onto an attorney friend of his ( James M. Parsa ) who is doing loan modifications and his firm ( National Loan Modification Center ) got my payment reduced by over $600 per month ( not much to some people but a great deal to me ). People have to be very careful. The process works but people should do their research. Just My Two Cents.

  BTW 4 Percent Mortgages would be a great idea!

  Andrew Traulsen

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