Wonkbook: Obama's big new mortgage plan

The other side's opinion on the President's "We Can't Wait" strategy"

The President’s argument is, in effect, “We can’t wait for democracy.” The Constitution gives the power of the purse to the Congress, not the President. If the Congress doesn’t want to enact his proposals, then it shouldn’t, and that’s how the system is supposed to work.

http://keithhennessey.com/2011/10/24/democracy-is-so-inconvenient/?wpisrc=nl_wonk

Unless they change the rule about being permanently employed for 2 years. Many will not get relief. I just refinanced and they insist that you have a steady income for two years. Most work is still mostly contract or temporary if you can find it and it is not steady.

My secret, if your 62 years old go on Social Security. Then that is steady income. Took less then 3 months to qualify, not 2 years! I was able to get 3.75% for 15 years. If you have a high home equity loan it is smart to do it now, if your having difficulty. It is about 3% now. However, if it goes back to 6% (which, it could do within months), more people will be have big problems. If they do get a job, chances are it will be for less. If your mortgage is over 5.5% then the experts say go for it.

I will still have to work, most likely contract, but this makes being in my house survival. All my retirement savings is now gone. My wife works full time retail with medical benefits. I am collecting a small pension, but at 65 I can collect two other small pensions.

The way I figure it, if you sell then your faced at not getting the true value of your house right now. You will have to rent, so that is throwing money away, especially if your mortgage is less then rent is in your area. Your going to save over 33% over the life of the loan. That will help recover the retirement funds you loss.

The costs of refinancing is not that high, especially if you know your going to be in your house for 5 years. This gives you a sense of security, even if the jobs are not there right now. I work in a profession where you could work all your life on the side. The problem it is not always there like most workers. If you live in a house that you might loose then your going to put less money and work into it. I have a large basement, I could do many projects in that they can't kick you out.

It may not be the greatest plan, but if it can help some get through this, then all the better. Doing nothing and waiting for everyone to foreclose and then have investors rent out homes at ridiculous prices isn't a good answer either. If it takes baby steps, it's better than no steps.

This plan would work great in Las Vegas, where people bought when property was high. Now, they lost their job and the property valve was cut in half. They can't increase there home equity, because now there isn't any.

This would reduce foreclosures. More help needs to be done, it is better then nothing. Bank of America and other bad banks would love to get these houses. Chances are they are in good areas and there is political pressure to help the higher middle class. Houses in poor areas never increased in value like houses in the suburbs. They just dropped in value due to many foreclosures and being poor. I am not picking on the poor, the richer people are getting more of the help.

If it saves one house that is one less family hurting so in my mind anything is better then nothing or the staus quo.

It's more than the republicans are doing, that's good enough for me.

Someone called in to the Clark Howard show a few months ago and said his bank lowered his Mortgage rate to 2% (reducing his payment by over $1,000 A MONTH! He has a +$400,000 loan!) And this guy did nothing, the Bank just did it!
I know this has to be a Gov. program. How do they pick and choose who gets these huge rate reductions?

From the research I have been doing, you can't be in foreclosure, nearing foreclosure or missed any payments. It's for people who they are going to try to keep from going to foreclosure. You have to have a job and be underwater on your home. It doesn't help those already facing foreclosure, but it is something. The next step needs to be those facing foreclosure, to keep the process from going forward. It should be for those unemployed as well, but with extensions taking so long to be granted, it's not a good bet right now. They need help as well.

The program is also not for anyone who couldn't really afford these crazy mortgages in the first place or for those who took out loans against their homes either. Solely for people underwater. But, as they say, baby steps. Hopefully there will be something soon for the unemployed.

Buying a new home can be a difficult process, especially when choosing which mortgage broker to use. I am also here looking for professional mortgage to get the best deal and a good place for living. Now when the govt. is changing laws frequently I guess mortgage house could go up.
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