tag:blogger.com,1999:blog-9922936.post7865123268147763001..comments2023-06-28T10:35:50.334-04:00Comments on Welcome to The Kicker!: How the Feds are Blowing Through 7.8 Trillion DollarsUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-9922936.post-67275870755310985532008-11-26T10:45:00.000-05:002008-11-26T10:45:00.000-05:00It IS going to help the tidal wave of foreclosures...It IS going to help the tidal wave of foreclosures though. THIS tidal wave, only there are more tidal waves to follow this one. Then what? The banks will still collapse anyway and they know this.<BR/>They are about to "gift" these homes over to folks that "too" should have known better...they will suck up the losses and run.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9922936.post-87720992083155865022008-11-26T10:29:00.000-05:002008-11-26T10:29:00.000-05:00Get this...The lenders are now re-writing the loan...Get this...The lenders are now re-writing the loans to fit the "correct" income and not the "stated" income that was used when the loans were made. However you aren't suppose to KNOW this unless you need to know this, read on. Loans that were made or "forced" to qualify are in big trouble at fault of the banks making their own rules and they "ALL" did it and some STILL do, believe it or not. If the pay stubs didn't reflect enough income they were simply "tossed". Then add an extra percentage rate (bump to the rate) to take it to a "sub-prime" mtg. to get the "stated" income feature. As if you must pay extra to do this horrific thing. (these were NOT "SUBPRIME loans but standard Fannie/Freddie guidelines created AFTER the deregulation of guidelines)...in other words anyone qualified for any size loan period on A+ PROGRAMS WITH AN ADDED POINTS, FEES ETC. to get this little "fuzzy math" loan. See the massive McMansions sitting vacant now. THAT is exactly why so many foreclosures are occuring and ALL the lenders allowed this. Some, again still do. NOT only the subrime lenders either. This is where the fault lies. DEREGULATION.<BR/>I deal with a massive amt. of folks now, daily...already this morning #19 folks needing help that are in trouble. If 3+ mos. down on their mortgage payments,their existing lender through their Loss Mitigation Dept. is "suppose" to re-write their loans to take no more than 38% of their gross monthly income and make IT the new paymt., thus reducing the balance and the payment to do so. "Adjust it down to fit" CitiMortgage is the leader of this new phase of "re-writes". It truly IS the only hope to save them. What is bad...is those of us that do pay on time and are penalized "for it" and do not get such a deal/reduced rate and balance. TRY explaining to someone that unless they are down 3+ mos. do they get a drastically reduced interest rate to force the lower payment. What reply do you think I am getting? I see $1600 mo. paymts. dropped to $700 mo. just by showing a y.t.d. paystub. Is this fair or is THIS going to "catch on" and really fast? Scary huh?<BR/><BR/>Think again if you think this foreclosure crisis is going to be over anytime soon. <BR/><BR/>Bottom line...We are bailing out the banks for the losses they are taking for the reducing of the balances and the interest rate for the loans they never should have made in the first place. How screwed up is that?Anonymousnoreply@blogger.com