Thread: "Underwater" Mortgage debt

Originally Posted by Dave Ramsey

100% of all homes that are lost to foreclosure had a mortgage on them.

This adds nothing to the conversation but thats never stopped me before.

Interesting that Shadowstats current %unemployment value (as defined in earlier eras), matches the %underwater mortgage figure at national scale.

http://www.shadowstats.com/alternate_data

I tried to hotlink the unemployment chart I'm referring to, but evidently I don't understand "hot links", so you'll have to find the chart at the link. Sorry, Scroll down.

In a light green (0-10%) state

but I dont know if my own home is "underwater"
or not, probably is.

http://www.myfoxatlanta.com/dpp/news...ousands-061410

ATLANTA - A workshop to help homeowners reduce their mortgage payments and keep their homes is back in Atlanta for a second time. The program by the Neighborhood Assistance Corporation of America has been hugely successful.

Thousands of people have been lining up and camping out at the workshop.

https://www.naca.com/index_main.jsp

NACA’s historic Save the Dream Tour has been an incredible success with hundreds of thousands participants in thirteen cities. Thousands of homeowners received same day solutions having their mortgage payments permanently reduced by over $500 and many by over $1,000 a month often with interest rates reduced to 3% or 2% and sometimes a principal reduction. NACA has legally binding agreements with all the major lenders / servicers to achieve this. All of NACA’s services are FREE

Why are they even considering principal reduction? What about those of us who didn't get overextended? Why are they getting interest rate reductions? I sure could use a 2% mortgage but I'm not under water or behind on my mortgage. Where is the adjustment to the term?

My solution would be to give these folks a 150 year mortgage. Yep...1800 payments. The home still stands as collateral for the mortgage and the loam amount is still the same. No foreclosure for the banks to deal with, no glut of homes in the market, home values remain artificially high and Jimmy Carter's dream is still alive. Maybe, just maybe after 5 or 10 years home values would come back to the point that they are no longer under water but until then the borrower can mark time and make payments.

There would need to be certain restrictions like no wrap around mortgages and no rental property but I think this would be a viable solution. I'm sure some of you will show me where I'm wrong.

the thing about prohibition against turning primary mortgage property into rental property is that would keep an unemployed person from moving to take a job that would let them keep those mortgage payments going.

Back in the early 80's, I moved minimum 1x/year to follow the work that was available, which was often contract time-limited employment ( I also moved from time-filler lowpaid steady-employment service work to take time-limited professional/technical jobs that would boost my resume).

I was a renter of course until I was in my mid-30s.

Let's just pass a bill to make it a law that everyone be allowed to own a house.

We'll call it the National House Care bill and those who can't afford a mortgage will have it subsidized by those who can afford their house. If you don't own a house you will be charged a fine and forced to live in government housing.

That should just about house everyone! Taking this to the Beltway! www.beltwaytalk.com

I truly didn't think my post was political in any way...

Why take it to the Belyway?

Originally Posted by KevinD

I truly didn't think my post was political in any way...

Why take it to the Belyway?

My comments were!

After all the real estate we indirectly financed via the bankster bailout, some of that gubmint housing looks better than mine!

Ever browse thru FL? This isn't it, but I hit on a street with Google street view that was wall to wall for sale signs. -Amazing
http://www.realtor.com/realestateand...991_1117206494
What 150k gets you...

Originally Posted by Frixxxx

Let's just pass a bill to make it a law that everyone be allowed to own a house.

We'll call it the National House Care bill and those who can't afford a mortgage will have it subsidized by those who can afford their house. If you don't own a house you will be charged a fine and forced to live in government housing.

That should just about house everyone! Taking this to the Beltway! www.beltwaytalk.com

Originally Posted by alevin

the thing about prohibition against turning primary mortgage property into rental property is that would keep an unemployed person from moving to take a job that would let them keep those mortgage payments going.

Great point. Owning a house is overrated. How many Americans actually 'own' their home anyway? Most people are stuck looking for jobs in their immediate area and end up selling themselves short as a result.

As far as underwater mortgages, I have no idea why anybody would believe things are any better today than two years ago.

I have the solution to all these mortgage prob's. govt just buys all under water mortgages from those crooks..or banks and let all under water ppl refinance at near 0 interest rate. Also whoever buys these underwater houses at regular price the previous owner paid also gets this low interest rate. This way, these under water house prices may be more expensive than the house nextdoor, but you end up paying the same monthly as a neighbor who paid 10's thousands less.