Have you been paying your mortgage? Then it sucks to be you
by tdaxp ~ November 11th, 2008
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.
Pathogenic load reduces...
November 11th, 2008 at 12:49 pm
And here I’ve been making two payments on time like a sucker, though I think I’ll be the only one with good credit in six months…
November 11th, 2008 at 2:17 pm
WFT? This is terrible. Those homes should be foreclosed on. I and others like me should not subsidizing bad home buying choices, real estate speculation gone bad, and outright fraudulent mortgage application!
It is stuff like this that pisses me off about USGOV. And we keep re-electing our reps overwhelmingly!
November 11th, 2008 at 2:27 pm
Reality seems intent on proving Ron Paul right!
November 11th, 2008 at 3:08 pm
If Obama’s college kid fans were thinking straight, they would be pushing for a College Loan Bailout too. (For students, not just the companies. That’s already happening [1])
Heck, you could even add “conditions” like volunteering at groups like ACORN [2], and call it national service!
[1] http://www.cavalierdaily.com/news/2008/nov/11/government-expands-student/
[2] http://www.tdaxp.com/archive/2008/11/07/changegov.html#comment-159938
November 11th, 2008 at 4:17 pm
“If Obama’s college kid fans were thinking straight, they would be pushing for a College Loan Bailout too.”
If? Last time I checked, I know plenty of examples of students (which I doubt are McCain supporters) pushing for debit forgiv…I mean “Bailouts” as you put it, and as far as “conditions” are concerned they are not as vague as you make them out to be, more like directing the “bailout” at certain programs such as first and secondary education.
November 11th, 2008 at 7:12 pm
I was looking for the taxpayer costs in the USGOV document:
GRRRR!!!!! How about for $400, me and a few buddies rough them up and shove a copy of Personal Finance for Dummies up there….well I digress.
BTW, that is a good (not a joke) book.
November 11th, 2008 at 7:23 pm
[...] On the Bailout, Part 24: Rewarding the wrong people at taxpayer expense I found this via TDAXP: [...]
November 12th, 2008 at 9:28 am
So a credit-card bailout might be coming, too. [1]
Maybe we can just pay people not to pay bills. GM’s been doing something similar for years. [2]
[1] http://biz.yahoo.com/ap/081112/american_express_ahead_of_the_bell.html?.v=1
[2] http://www.tdaxp.com/archive/2008/11/12/gm-uaw-not-a-winning-combination.html
November 12th, 2008 at 5:28 pm
At least USGOV won’t be buying the MBSs anymore! [1]
–
[1]
http://purpleslog.wordpress.com/2008/11/12/good-news-treasury-secretary-paulson-says-government-wont-buy-troubled-assets-on-the-bailout-part-25/
November 14th, 2008 at 10:27 am
It looks like they’re holding open the bailout to 2009, so if you missed your chance, you can stop paying now！ [1]
[1] http://calculatedrisk.blogspot.com/2008/11/fdic-loan-modification-proposal.html
November 14th, 2008 at 10:57 am
The ARM resets on the 5.5 million houses won’t finish until probably 2010, so look for that to be extended.
Won’t do me much good. I only have three years to go on my ARM. Looks like all adjustments will be downward.
November 14th, 2008 at 1:20 pm
The Chairman of the FDIC, Sheila Bair, is proposing for a massive spending program designed to subsidize the consumption of those who made foolish mortgage payments [1].
sonofsamphm1c, your mistake seems be not gotten a 2nd mortgage at the height of the bubble!
[1] http://money.cnn.com/2008/11/14/news/economy/fdic_bair/?postversion=2008111415
November 14th, 2008 at 6:02 pm
I still could. Houses in Dallas are down, but not much in my neighborhood.
I could take an equity loan and buy gold. I keep hearing it’s going to be 4000 an ounce in just three years! Sure thing. Can’t miss. Sort of like leaded gasoline futures!
November 15th, 2008 at 1:02 pm
On some HGTV show this morning, the protagonist was a “professional flipper” and psychic healer, in long beach. She bought the house for $700,000.
There’s a lot of really good work on the housing bubble out there, including blogs [1], but that struck me as an archetypical sign that something was very, very wrong.
[1] http://www.doctorhousingbubble.com/
February 1st, 2009 at 6:48 am
[...] I said back in November, only suckers pay their mortgage. « The Universal Church, Part II [...]
April 10th, 2009 at 11:21 am
[...] you have been following a respectable media source, like this blog, you already know that only suckers pay their mortgages and organized gangs are systematically seizing [...]