February 28, 2009
Bailout Stirs Up Strong Feelings
Bailout Stirs Up Strong Feelings
Banks got bailed out. So did automakers. So why not struggling homeowners?
The question has struck a raw nerve across the country, with critics saying the Obama administration’s latest housing rescue rewards people who bought homes they couldn’t afford. Others counter that the taxpayer-financed plan will slow spiraling home prices and avert a deeper economic disaster.
Republican lawmakers and conservative pundits have denounced the plan as an affront to free market principles and said it promotes irresponsible borrowing.
Supporters of the plan are pushing back. Some say “this is the financial equivalent of what Hurricane Katrina did to New Orleans. Did they know they were living below sea level?" Does that mean we shouldn't have helped them?
What do you think? We'd love to get your feedback. Just click the comment link below and tell us how you feel about the housing bailout. Your email address will NEVER be published at this site!
Comments on Bailout Stirs Up Strong Feelings »
T in Southern CA @ 11:41 am
The mortgage meltdown is the homeowner's burden AND we are paying to bailout the greedy ones who got us into this mess.
What we are going through is surreal.
I am just north of San Diego in south Orange County. I bought in 2006 and my home is now worth $270,000.00 less than what I bought it for at $689,000.00. I won't qualify for the new Homeowner Affordability and Stability Plan which is to be released in March 2009 because the percentage of what I owe vs. my home value loss is greater than 105%.
Countrywide said they will not modify my 10-year interest-only loan.
Californians who bought during the bubble peak seem to be left out of this picture. We have jumbo loans, and we got screwed.
What can we do?
Buyer's Broker @ 9:30 am
T.
John Rygiol here. I am the Broker/Owner of Buyer's Broker.
I also live in South Orange County and bought my home in 1999.
Saw it almost triple by 2006 and drop 20% in 2007-2008.
Several things I would like to say.
It is too early to try to negotiate with the lenders. They are in such a state of flux that one hand does not know what the other is doing.
DO NOT GET RIPPED OFF BY THOSE INDIVIDUALS AND COMPANIES THAT CLAIM THEY CAN RENEGOTIATE YOUR LOAN NOW.
It will take the rest of this year before things get settled down and certain parts of the stimulus bill start taking effect with the lenders.
In Orange County and San Diego County I believe we are at the bottom or within 5% of the bottom and we will be level for at least 2 years.
Prices will start going up gradually again after that.
I believe that your best bet is to wait a few months and then renogotiate your loan. Now is not the time.
You are welcome to contact me via email at: John@EBAUSA.com
Best Wishes!
JR
John J. Rygiol ABR, GRI, CRS & EBA
BUYER'S BROKER
T in Southern CA @ 7:34 pm
Hi John,
Thank you very much. I appreciate your response and I completely agree with you. There are more ads for loan modifications on the radio than ever before. They are looking for desperate people.
Late last night, by chance I caught the Senate hearing on the "Housing Affordability and Stabilization Plan" with HUD Sec. Shaun Donovan on C-SPAN. A video of the 2-1/2 hr. hearing is on the C-SPAN website.
The guidelines of the new "Hope For Homeowners" plan will be released on March 4th, 2009. They were thinking of Californians when they increased the top amount of eligible loans to $730,000.00 (up from $412,000 - the jumbo loan limit).
Any financial institutions who receive TARP funds (going forward, not previously) will be obligated to honor the guidelines of this new plan. Secretary Donovan stated that the information will be posted on the HUD website.
I am hopeful that this will stem many foreclosures.
Kindest regards and best of luck to you, John.
Thanks again.