Do you have a mortgage you pay every month? Or were you saving up to make a big down payment.
Then you made the wrong decision.
Smart borrowers have simply stopped paying the mortgages, letting them (unlike you) qualify for bailouts from the federal government:
Calculated Risk: FHFA Modification Program Details
Q: What is a streamlined modification?
A: A streamlined modification is a modification that requires less documentation and less processing. In this case, the streamlined modification seeks to create a monthly mortgage payment that is sustainable for troubled borrowers by targeting a benchmark ratio of housing payment to monthly gross household income.
Q: Why is it necessary?
A: With the rise in serious delinquencies and increasing number of loans in foreclosure, this program will help borrowers who have missed three or more payments, but want to keep their homes. Because the eligibility requirements and process are streamlined and consistent, the program will allow servicers to reach more borrowers more quickly.
Q: Why must the borrower be 90 days delinquent? Why not earlier in the delinquency cycle?
A: This is a streamlined solution targeted to reach the most at risk borrower. For borrowers who do not qualify, other solutions are available. This in no way substitutes for the meaningful efforts by all servicers and investors that are currently in place. The 212,000 workouts reported by HOPE NOW in September are testimony to that fact. We will continue to see those efforts produce meaningful results.
All smart mortgage holders should stop making all payments for 90 days. In exchange for a hit to your credit rating, you may save tens of thousands in interest and come away with lower monthly payments!
Next up: a credit card bailout.