Posted on 08/23/2007 8:54:39 AM PDT by Hydroshock
NEW YORK (CNNMoney.com) -- Tens of thousands of frightened homeowners looking to get out from under the crumbling walls of the subprime mortgage collapse have found refuge in a variety of programs.
When Senate Banking Committee Chairman Christopher Dodd mentioned the national Homeowner's HOPE Hotline in comments Tuesday, it triggered some 3,000 calls.
An announcement in April that the Neighborhood Assistance Corporation of America would be offering $1 billion in rescue money to beleaguered borrowers has prompted more than 50,000 inquiries, according to the organization.
And in Ohio, New York, Massachusetts, Maryland and other states, distressed mortgage holders are clamoring for whatever aide is available.
"It's exceeded our expectations," said Diane Gray, director of counseling and education at Novadebt, one of the nonprofit organizations that helps the Homeownership Preservation Foundation administer the HOPE line. "We've had to revise our forecast for 2007 several times. There's a great need for counseling
(Excerpt) Read more at money.cnn.com ...
“And in Ohio, New York, Massachusetts, Maryland and other states, distressed mortgage holders are clamoring for whatever aide is available.”
In other words, people who can’t handle their own money are begging for other people’s money. Pathetic.
> $1 billion in rescue money
Woohooo! Free money!
Agreed, but isn’t the whole mortgage thing one major leg of a greater economic scam?
Yep, that about sums it up. Wait until the first half of next year when so many ARM’s reset.
“Agreed, but isn’t the whole mortgage thing one major leg of a greater economic scam?”
To some degree. Fortunately, my business teacher in high-school, Mrs. Bacon (I still love ya, babe), preached Caveat Emptor constantly. Evidently some didn’t or folks ignored it.
Three years ago we had the option to go in like some of these folks did and flat turned it down. I’m of the opinion that most folks who took those loans had the intention of flipping their house for profit in short order and were not concerned with interest and such.
The television shows “Flip this house” and “Flip that house” did NOT help the situation any.
And it will never benefit the politicians focused on short-term to say “hey, it’s a free economy. You made your choices, now live with them.”
Instead Politicans seeking to score points will follow more closely the line that Gov’t needs to bail out those (esp. special interest groups) who were “cheated.”
The amusing thing is that congress will rush in by spring of next year to save folks who can’t make the 10 percent down payment requirement that most banks are going to ask for. Personally...I’d like to see any house priced at $250k or more...requiring 25 percent down payment. This is silly to be in Florida....paying huge housing costs for houses which aren’t worth more than $150k max.
If you think it’s free, try to get some of it and let us know how it turns out.
Counseling almost by definition is something that works best before borrowing, not after! If I’m gonna lose my home the last thing I want is a lecture. Not to pick on anyone, but where was the Center For Responsible Use Of Excessive Capitalized Non-Governmental Organizations? How about congress, aren’t they supposed to set legislation?
“If you think it’s free, try to get some of it and let us know how it turns out.”
A large number of people get “free” money that most folks can’t get heir hands on. Free for thee but not for me.
How do I get one of THOSE loans?
I just don’t get it. I have fixed 15 yr mortgage from early 2004 at 4.9%. Historically, very low. I was offered an ARM at about 3.0% (I don’t remember exactly. Historically, even lower! But it was very clear all along - it can/will be adjusted after 2 years. How much more obvious can the risk be?????
Join the military, get a VA loan.
>> If you think it’s free, try to get some of it and let us know how it turns out.
I’m curious what motivated your response.
Do you think it’s a good idea to reward stupidity in borrowing and lending by bailing out the offenders with taxpayer money?
Pushed one level higher, do you think it’s a good idea to reward short-sighted greed among financial professionals by bailing out their industry with taxpayer money and low interest rates, so they can get back to work defining and selling illiquid financial “derivatives” and we can start the whole bubble process again?
Just wondering.
That's just it, to me, that's clue to something bigger about this.
They're not doing it just to be nice to poor people, something bigger is behind that curtain.
That's just it, to me, that's clue to something bigger about this.
They're not doing it just to be nice to poor people, something bigger is behind that curtain.
I am VA eligible, but the rate is not 5.75%.
(((A large number of people get “free” money that most folks can’t get heir hands on. Free for thee but not for me.)))
Indeed. I have a sibling who won’t work...just doesn’t wanna. She’s better off than me, I think.
What makes you say that? Do you know the details of the program, or do you imagine it's a certain way so you can act indignant?
Pushed one level higher, do you think it’s a good idea to reward short-sighted greed among financial professionals by bailing out their industry with taxpayer money and low interest rates, so they can get back to work defining and selling illiquid financial “derivatives” and we can start the whole bubble process again?
What bailout with low interest rates? The yield curve was inverted for over a year. That means rates have been too high. They should come down to be in line with market rates. And after all the business failures, the liquidity crunch, and several thousand layoffs, the industry isn't coming back anytime soon, no matter what.
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