"11 SEC. 124. HOPE FOR HOMEOWNERS AMENDMENTS.
12 Section 257 of the National Housing Act (12 U.S.C. 13 1715z-23) is amended— 14 (1) in subsection (e)— 15 (A) in paragraph (1)(B), by inserting be16 fore ‘‘a ratio’’ the following: ‘‘, or thereafter is 17 likely to have, due to the terms of the mortgage 18 being reset,’’; 19 (B) in paragraph (2)(B), by inserting be20 fore the period at the end ‘‘(or such higher per21 centage as the Board determines, in the discre22 tion of the Board)’’; and 23 (C) in paragraph (4)— 24 (i) in the first sentence, by inserting 25 after ‘‘insured loan’’ the following: ‘‘and 1 any payments made under this para2 graph,’’; and 3 (ii) by inserting at the end the fol4 lowing ‘‘Such actions may include making 5 payments, which shall be accepted as pay6 ment in full of all indebtedness under the 7 eligible mortgage, to any holder of an ex8 isting subordinate mortgage in lieu of any 9 future appreciation payments authorized 10 under subparagraph (B).’’
Is this about renegotiating mortgage rates of existing mortgages? Did I just get screwed for paying a point to lock in 5% fixed rate when my asswipe neighbor went with no points adjustable rate? How the hell is this fair? I want his new rate and MY POINT BACK!
Read on. Under HOPE the Federal Agencies holding the paper can reduce interest rates AND principal owed.
So, a diligent and responsible person who pays their bills and bought at the top of the market owes the same amount. A person who bought a house at the top of the market (and how many of them lied on their app documents or didn’t have to qualify at all) and is failing to make the house payments can have the principal of the loan reduced.
So, in other words, once the housing market recovers, these deadbeats will be UNJUSTLY ENRICHED with more equity in their homes after they get this break compared to the guy next door who diligently paid his mortgage and did not get such a break. UNREAL