Comments - Professor advises underwater homeowners to walk away from mortgages - 12160 Social Network2024-03-28T20:52:33Zhttps://12160.info/profiles/comment/feed?attachedTo=2649739%3ABlogPost%3A130484&xn_auth=noListen, we decided a year ago…tag:12160.info,2009-12-08:2649739:Comment:1329962009-12-08T07:54:43.418ZJeffhttps://12160.info/profile/Jeff
Listen, we decided a year ago to apply for a Loan Modification.<br />
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The loan is held by Fannie Mae and serviced by JP Morgan/Chase.<br />
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The mortgage is $996 and we've owned the house for 20 years and never paid late, ever. Nice house, great neighborhood. We even lived in Mexico for two years and still paid the mortgage on the empty house.<br />
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I have no income. I retried and refuse to work. Ann was a teacher until the first of December when she qualified for Social Security Disability. She made very good…
Listen, we decided a year ago to apply for a Loan Modification.<br />
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The loan is held by Fannie Mae and serviced by JP Morgan/Chase.<br />
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The mortgage is $996 and we've owned the house for 20 years and never paid late, ever. Nice house, great neighborhood. We even lived in Mexico for two years and still paid the mortgage on the empty house.<br />
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I have no income. I retried and refuse to work. Ann was a teacher until the first of December when she qualified for Social Security Disability. She made very good money, about $54 an hour plus all sorts of benefits. I made even better money when I worked.<br />
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The house is probably worth between 90 and 135,000 dollars.<br />
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It was worth 185,000 dollars a few years ago.<br />
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We didn't qualify for Mr. Obama's Making Homes Affordable Program.<br />
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We are arguing that decision because based on the criteria we actually do qualify. We contacted our Congressman and they have intervened on our behalf but made it clear that they may not be able to work anything out.<br />
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Our mortgage is 3.25% which is VERY low but the Making Homes Affordable Program can bring the loan to 2% interest, even lower.<br />
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Here's the problem as told to me by Alison, a representative from my Congressman's office.<br />
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The servicing bank, JP Morgan/Chase, makes very little money collecting the monthly payments for Fannie Mae. They are a loan servicing agent. They get a small percentage of the loan payment, very little actaully.<br />
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However, if the home goes into foreclosure they stand to profit immensely because in that case they get a percentage of the total value of the loan. Far more than the few dollars a month they get for servicing the loan.<br />
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Therefore, it is far more profitable to the servicing agent to allow the home to foreclose than to adjust the mortgage lower. In that case their small percentage for collecting on the loan each month would be even less. So, they'd rather see the home foreclose. They have nothing to lose. They don't own the loan. Fannie Mae owns the loan which means, essentially, the government owns the loan, which means YOU own my loan.<br />
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:)<br />
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So here's what we decided.<br />
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Last June they put us on a 3 month payment plan making payments of $868 per month, which was the anticipated amount, or close to it, that we might pay had we qualified for the Making Homes Affordable Program.<br />
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We're still paying that amount today. We'll never pay more. If we get foreclosed we could care less. We've lived here 20 years, taken several loans out on the increased value of the home and profited by MANY thousands of dollars. Many. We just pay $868 every month as if we did qualify, but we didn't, and we get farther and farther behind every month. Fuck 'em.<br />
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They can have the house. We'll rent an apartment. We'll NEVER shovel snow, cut the lawn, perform maintenance or make a repair, ever again. Actually, we can't wait.<br />
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Based on the money we've taken out of the house over the years we have profited immensely from owning this house. We've actually paid very little over the years if you subtract the HUGE sums we've taken from the total we've paid.<br />
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In the end, we win no matter what happens. Uncle Sam and the American people lose no matter what happens. That's the way they seem to want it.<br />
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Janet Jubilee said, "The economy is in a mess because of people deliberately not paying back what they owe."<br />
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What planet are you on? If you really can't afford yo…tag:12160.info,2009-12-05:2649739:Comment:1320992009-12-05T21:23:23.309ZJoe Greenhttps://12160.info/profile/JoeGreen
If you really can't afford your morgage and can't get it reduced, just walk away. Don't do what some people I know did, spent every last cent they had(and one even borrowed from relatives) to keep their house. In the end, they lost them anyway. If you can afford to make the payments, make them, you signed the contract. One big mistake people make with the home they live in is thinking of it as an asset. Well it isn't, it's a liability.
If you really can't afford your morgage and can't get it reduced, just walk away. Don't do what some people I know did, spent every last cent they had(and one even borrowed from relatives) to keep their house. In the end, they lost them anyway. If you can afford to make the payments, make them, you signed the contract. One big mistake people make with the home they live in is thinking of it as an asset. Well it isn't, it's a liability. The economy is in a mess beca…tag:12160.info,2009-12-02:2649739:Comment:1308652009-12-02T03:18:50.102ZJanet Jubileehttps://12160.info/profile/JanetJubilee
The economy is in a mess because of people deliberately not paying back what they owe. The only thing I don't agree with is monthly interest and high property taxes that effect all of us.
The economy is in a mess because of people deliberately not paying back what they owe. The only thing I don't agree with is monthly interest and high property taxes that effect all of us. Let's hope so...we didn't cau…tag:12160.info,2009-12-01:2649739:Comment:1307882009-12-01T22:33:34.129Zyouhavetoforgivemehttps://12160.info/profile/youhavetoforgiveme
Let's hope so...we didn't cause this problem: They did.<br />
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Even if they didn't deliberately cause this, they are the ones that knew more about how money works more than we did.<br />
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If they didn't know better, they should have.....
Let's hope so...we didn't cause this problem: They did.<br />
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Even if they didn't deliberately cause this, they are the ones that knew more about how money works more than we did.<br />
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If they didn't know better, they should have.....