Mortgage help lacking

The Boston Herald ^ | 1/2/2010 | By Thomas Grillo

[Bluestateredman]

Where to begin? I feel badly for this woman, clearly she received some bad advice. However, there are so many holes in the story. Where are her two daughters that she took care of? Have them move in and help pay the bills. A seven room ranch for a 65 year old widow? Put your sentiments aside, sell the house,(probably earn about $150,000) and move on with your life. No loan modification is going to help this woman. This is yellow journalism at its best.

[SIDENET]

Mortgage help lacking Natick woman frustrated with Obama program to modify loans

I've read this article's title twice now.

All I've figured out is that I probably need more coffee.

[GOP_Lady]

Be very careful how you use your house as a bank.

[Marty62]

How can she not have income and still pay the “interest only” payments.
WEIRD

[silverleaf]

From what I read, I fault the bank's inlfexible standards on “income” for this one.

Actually I am confused because if she had an FHA loan (she should) modification doesn't requite income, just showing that the monthly payment will be lowered for a person who has a track record of making payments

If she can make $1500 a month payments and has a history of doing so (big IF) they should be happy to lower her interest rate to the prevailing 4.5 % and give her a 30 yr loan that includes payments against the principle

SS income is “income”. She could also take in a roommate or set up a home business like babysitting or pet sitting

I agree about the 2 college educated daughters, they should be willing and able to chip in something. I would bet they spend a couple hundred a month on cell phones, manicures and cable and drive new cars

[Mr. K]

Is she the right color for a loan modification?

The banks WILL NOT HELP YOU to do this- if you don’t do all the work yourself you cannot expect them to

[elli1]

Freier is paying $1,500 monthly on an interest-only loan for 10 years at which time the principal will be due.

[EGPWS]

The only "government" help for mortgage holders should be "government" enforcing the contracts of those who signed them to bind them.

So much for freedom to do business however...

[Centurion2000]

But as the couple was nearing the end of the 30-year note, they refinanced three times from 2002 to 2007 to help pay for Martin’s parents’ medical bills, major home repairs and college tuition for the couple’s two daughters.

Today, Freier is paying $1,500 monthly on an interest-only loan for 10 years at which time the principal will be due.

This woman needs to just get an apartment or maybe move in with one of the two daughters. Zero sympathy here.

[ladyjane]

The woman has two college educated daughters but she wants Obama (translated: us) to pay her mortgage.

[bergmeid]

Good luck with that principal.

[EGPWS]

...there are so many holes in the story.

There is also mortgage insurance that settles situations such as these perfectly.

Well, better than a wide screen television with surround sound or a new vehicle anyway.

[EGPWS]

Zero sympathy here.

(GASP)

You EVIIIIL conservative you!

You probably breathe and own an SUV to destroy the planet too. / ~ ; ) /MS

[Gay State Conservative]

According to the Town of Natick’s Assessors Dept the house is assessed at about 370K.It's a *very* nice house,as you'll see if you check the link I'll provide below,and I'd wager that it could bring at least $400K.Today,there are some *very* decent one bedroom condos in Natick that can be had for $175K or less.It's sad to hear of the loss of her husband but this woman's gotta sell the house,buy a condo and she'll be fine.In smaller quarters to be sure but *FINE* nevertheless.

Link: http://www.natickma.org/assess/detail.asp?ACCOUNT_NO=39%2D0000033D

[martinidon]

This just pisses me off! So go get a job at MacDonald's or Burger King to show income. What is she waiting for.. Oh that's right a hand out (our money) from obama and the dems. Why work!

[M.K. Borders]

I have always been told that you need a 2 point drop in interest before you will realize any benefit from a refinancing. 7% to 5% in this case.

Does that hold true in the case of modification? If it is true, then the 7% mentioned in the story seems like a pretty good rate to me. Little reason for the bank to accept 5%.

[Prov1322]

Hoax and Chains in full operation...

[Ruy Dias de Bivar]

***Freier and her husband, Martin, moved into a new seven-room raised ranch house in Natick shortly after they married in 1972.****

What is this? They should have paid it off long ago! Once out of debt on a house, NEVER ever go back into debt with it!

I bought my first house in 1977 with 7.9% interest, sold it 17 years later, took the money and and bought a run down farm house free and clear.

My worthless brother-in-law (if you know him he probbly owes you money) bought a fixer upper in 1995, no down. Refinanced it and spent the gain. Refinanced it again and spent the gain, and again and again. Now he owes much more than it is worth and is considering bankruptcy or walking away from it.

My uncle said it years ago. The best raise in income you will get is when you pay off your car and house! He was right!

[johniegrad]

What is this? They should have paid it off long ago!

If you look more closely at the article, you will find that she refinanced it twice in this decade for a variety of uses none of which had anything to do with homeownership or paying off her own debt.

The whole situation is insane but even more insane is the author's attempt to suggest that this is anything but irresponsible money management on the part of the home owner.

The lady goes on to say that she WON'T leave HER house.

Somebody forgot to tell her that it isn't hers.

[EGPWS]

I have always been told that you need a 2 point drop in interest before you will realize any benefit from a refinancing. 7% to 5% in this case.

That could be.

My property (presently in another state)I purchased 01/90 at 9% and I didn't refinance until 5% in '04.

I however know what I can afford, prepare for what I can't if needed, and have insurance and a nest egg just in case I screw up.

Most don't follow my formula in life however.