Disqus - Latest Comments for LadyFLRealtor

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:54:37 -0000

Lauren, you are so correct. At the very least there should be a freeze on foreclosures until Congress figures out a solid plan, and I don't care how much of their 6 week vacation they cut into! They should have been working on this the last year. Bush put through a terrible plan, but Congress has not looked out for Americans, loyality to too many lobbyists and contributors. The housing plan they already passed did not help Americans either and we will owe on it for years to come.

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:48:50 -0000

You are so correct.

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:46:54 -0000

The Bankruptcy courts already allow for re-modifications of second homes and investment properties, but unbelievably there is no help for the homeowner. There could be a cutoff period so that this is not a precedent for filings in the future, but these times are different. Perhaps it could only affect those properties "upside down" financed between 2004-2007. If the loan balances were adjusted to the current market with a lower interest rate (arms went up 3% higher even on conservative rates of 6.25) requiring PITI (principal, interest, tax & insur) it would be far better for the economy for people to stay in their primary homes.

Empty houses and foreclosures are driving the values of the neighborhoods down lower & lower with no end in sight. The bleeding has to stop, and throwing billions to reward Wall Street's speculative actions with no retributions is not the way to go. Perhaps Congress better take an extra week, listen to economics (and not just the financial institutions/politicians with their own agenda), and then put forth a plan than Americans can begrudgely support, with an end to the crisis in site.

Re: Bailout Bill Must Include Help for Homeowners

LadyFLRealtor — Thu, 02 Oct 2008 17:20:00 -0000

I am in the Real Estate industry. We now know this crisis began with the corruption of Fannie Mae & Freddie Mac. Hearings were held in 2004 for the fraudalent bookkeeping and outrageous salaries for those running the program, and those in Congress "on their payroll" overturned the proposal for more accountability and regulations. Subprime home loans were given at 105%, many "creative income". Spectators began investing in the more lucrative high interest (or potential) mtgs and banks began issuing loans for even W-2 workers as "stated income, stated assets" with good credit. This is how mainstream got into trouble along with the toxic millions of loans approved for low income/bad credit loans issued that never should have been. Spectators buying 2+ properties to flip drove up prices for primary homes, there were no boundaries and virtually anyone could be approved 2004-2006. The loans with no equity in the house are truly toxic and people should be allowed to walk with no repricussions IF they leave house in good condition and turn over title, or be allowed to rent so govt owns (after paying 50% on loan to mtg). Now taxpayers have the asset to rent or sell.

Second part of the problem I know personally. I am a single Mom who works hard in a very expensive area in Florida. When there were no rentals available and it was a seller's market due to the lack of inventory in 2005, I bought a $485,000 fixer upper ($30,000 under the market). I put down $100,000 (my equity from a property I had for years) planning to refinance at a better interest rate after one incorrect item was removed from the credit report. Took an arm at 6.25% (fixed would have been 6.75), a one year pre-pay, and just needed 4 more points on credit to receive a 1% less interest rate for 30 yr fixed. The bubble burst 6 months later and couldn't get the appraisal to refinance. Property taxes continued to rise to almost $4,000 (from $1,700) along with insurance after Katrina. I am not in a flood zone. I have 20% in my property now worth 40% of what I paid for it. The lender will not negotiate lower, in fact wouldn't talk to me unless I went 90 days past due and by that time they already had a law firm filing papers at the courthouse. The lenders cannot fix this, only modifications done through local state offices to clear the inventory. Trickle down DOES NOT work. Have to start at the root of the problem by stopping foreclosures that are driving ALL home prices down until Congress can get economics to help them resolve an issue they don't have a clue how to fix.