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There has to be more to this, IMO.
I checked this morning -- no updates.
But I agree with you -- at the very least they should have been banking their payments..and I can't imagine that they honestly thought that it would have been "ok" to forego their payments for any stretch of time.
2 days from now, tomorrow will be yesterday.
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05-04-2009 08:24 AM
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I've said it before, if they could afford to make a mortgage payment, they could afford to rent.....no reason to peg them as 'homeless' .....that terminology implies a false picture to the situation.
not necessarily --
our mortgage is a total now of $939 a month -- and it's going up again in July.
but if we somehow managed to get a refinance/modification, then our payments would drop about $200 a month...
you can't do much with $11 an hour and no jobs available (highest unemployment in the nation) -- but we don't qualify because our house is worth less than the loan owing and equity is virtually non-existent.
Renting? it's about the same price here or higher than our mortgage -- unless you get the crime ridden sections of downtown Detroit...
2 days from now, tomorrow will be yesterday.
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Originally Posted by
atprm
not necessarily --
our mortgage is a total now of $939 a month -- and it's going up again in July.
but if we somehow managed to get a refinance/modification, then our payments would drop about $200 a month...
you can't do much with $11 an hour and no jobs available (highest unemployment in the nation) -- but we don't qualify because our house is worth less than the loan owing and equity is virtually non-existent.
Renting? it's about the same price here or higher than our mortgage -- unless you get the crime ridden sections of downtown Detroit...
Exactly. This is our 3rd house. It's a nice place. Our mortgage here is less than we would pay on a 2 bedroom apartment because we put the equity from our 1st home as a down payment on our 2nd and the equity from that home as the down payment on this one. This house cost considerably over twice what our 1st house cost but our payments are $40/month more than we paid at the 1st house because of the large down payment. Even if we could downsize a lot to rent something we would then lose the tax credits that come from home ownership. When we sold our 1st home I figured it out that we made $100/month by living there. I've never heard of anyone renting a place and paying the tenants to live there.
We are moving to Germany this summer. We considered selling this house. I decided it would be better to keep it and rent it out. We will have a foreign income credit on our taxes but that won't cover the full amount of our income. By keeping this house we can claim the credits for mortgage interest and property taxes. Those will allow us to itemize which will allow us to deduct the license plates we paid this year, the tax software I use, DH's job expenses, the tons of charitable deductions I'll be making prior to the move, etc. Because we have a house and aren't renting here we will be in a 0 tax bracket next year despite making a pretty decent income in Germany.
Another benefit that's more of a warm fuzzy is that because our mortgage payment is low we were able to help out a very sweet family. They will be living here and house sitting for us. They will be paying us rent and they will pay the utilities. They are currently renting a much smaller house. We are able to let them live here, gain about 50% more square footage, use the hot tub, and still save $300/month over what they are paying right now. The rental income doesn't mean nearly as much to us as knowing that we are able to give all of that to them without losing any money on the deal. Their rent payments to us combined with cutting some of our other expenses such as the landscaper will actually result in us making a small profit on this house. When I told them what we wanted in rent they didn't believe me. Yes, most people who are buying $500,000 houses on an income of $50,000 are in way over their heads. But others have skimped and saved and have large enough down payments that their mortgage may not be much more than someone else in an $80,000 house who didn't have a down payment.
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I know 3 people in the loan remodification process and all 3 were told not to make payments until the modifcation went thru. Only 1 of the 3 is banking their payments while waiting for the paperwork to catch up. The other 2 are spending foolisly. When those 2 lose their homes it will be their fault. The one who is banking payments actually had their house up for auction, they found out when people showed up to look at the property. They called the auctioneers, told them what was happening and had their lawyer call and make threats. the house was taken off the auction block. In a few months it will be a year since they started the remodification process. it is just goofy. She says if ahe looses the house so what, she has alot of money banked from not making payments. Her mortgage was/is, $2782 a month. With home prices declining, she'll have a great down payment.
Me
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Originally Posted by
Bahet
Exactly. This is our 3rd house. It's a nice place. Our mortgage here is less than we would pay on a 2 bedroom apartment because we put the equity from our 1st home as a down payment on our 2nd and the equity from that home as the down payment on this one. This house cost considerably over twice what our 1st house cost but our payments are $40/month more than we paid at the 1st house because of the large down payment. Even if we could downsize a lot to rent something we would then lose the tax credits that come from home ownership. When we sold our 1st home I figured it out that we made $100/month by living there. I've never heard of anyone renting a place and paying the tenants to live there.
I absolutely hear you on the tax advantages of home ownership, rolling over home equity/downpayments/etc. and have a lower mortgage payment. Along with home ownership also comes home repair....that isn't tax deductible....nor is your landscaper, etc......
Usually, 'renters' are not responsible for those costs neither.
atprm Quote:
I've said it before, if they could afford to make a mortgage payment, they could afford to rent.....no reason to peg them as 'homeless' .....that terminology implies a false picture to the situation.
not necessarily --
our mortgage is a total now of $939 a month -- and it's going up again in July.
but if we somehow managed to get a refinance/modification, then our payments would drop about $200 a month...
you can't do much with $11 an hour and no jobs available (highest unemployment in the nation) -- but we don't qualify because our house is worth less than the loan owing and equity is virtually non-existent.
Renting? it's about the same price here or higher than our mortgage -- unless you get the crime ridden sections of downtown Detroit...
Making $11 p/h seems really rough for a $939 mtg payment to begin with.
If you did lose your house, assuming you still had an income....would you move to another neighborhood you could afford to rent in (even crime ridden) rather than be homeless? My point being, there is an option......it just may not be the same standard one has been used to.
Mrs Pepperpot is a lady who always copes with the tricky situations that she finds herself in....
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You wanna feel bad, But why would not expect this if you are NOT paying your mortagage to ANYBODY!?! I mean thats like someone saying okay just stop paying for your car till you can afford it. Do you think the bank would let you do that. NO!
Its along the same lines. I know its different but that in essence what they did. They weren't paying ANYBODY for all that time.
My "adopted" brother. Gone but not forgotten. 8/23/09
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Originally Posted by
hblueeyes
The one who is banking payments actually had their house up for auction, they found out when people showed up to look at the property.
Me
Now here's another thing that doesn't make sense. (not saying you're lying, just saying it makes no sense)
How does a persons house go up for auction and they DON'T KNOW IT! This process doesn't happen in just one day. You'd have to be SEVERAL months behind on payments (which you're notified of), you are served with foreclosure papers, (which you have to sign for), and then several months later, you're house would be foreclosed or sold at auction.
How can a person NOT know this??
I'm also curious as to why this is taking a YEAR to modify their loan?? I've heard it takes 1-2 months.
Last edited by 3lilpigs; 05-04-2009 at 11:18 AM.
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Originally Posted by
pepperpot
They might have been told to stop paying their mortgage so they could qualify for a certain grant. There was a 'program' not too far back that I recall (can't recall the name) you only qualify for if you were x months behind.....so many who could afford their payment would stop paying to get their payments lower....
That program/grant actually encouraged people to default.
There are 2 programs that are approved by the Govt.
I believe this is from Obama's home stimulus package.
http://makinghomeaffordable.gov/
No where does it say to stop making payments.
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Originally Posted by
3lilpigs
There are 2 programs that are approved by the Govt.
I believe this is from Obama's home stimulus package.
http://makinghomeaffordable.gov/
No where does it say to stop making payments.
You may be eligible if:
You are the owner occupant of a one to four unit home,
The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (Don't know? See below),
At the time you apply,
you are current on your mortgage payments (current means that you havent been more than 30-days late on your mortgage payment in the last 12 months or, if you have had the loan for less than 12 months, you have never missed a payment),
You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house,
You have income sufficient to support the new mortgage payments, and
The refinance improves the long term affordability or stability of your
It wasn't this one....the other program, the owner had to be behind to qualify......
Mrs Pepperpot is a lady who always copes with the tricky situations that she finds herself in....
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http://www.occ.gov/ftp/ADVISORY/2009-1.html
(Halfway down that page.........)
How to Protect Yourself from Mortgage Modification and Foreclosure Avoidance Scams
Always proceed with caution when dealing with anyone offering to help you modify your mortgage or avoid foreclosure. Remember that you do not need a third party to work with your lender any such party should make the process easier, not harder and more expensive.
* Contact your lender or mortgage servicer first. Speak with someone in the loss mitigation department for mortgage modification options and other alternatives to foreclosure.
* Make all mortgage payments directly to your lender or to the mortgage servicer. Do not trust anyone to make mortgage payments for you, and do not stop making your payments.
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