Does anyone know enough about the housing rescue bill which was passed through congress and how it can help me

Question

I'm upside on my house about $30,000 and cannot afford my payments since they adjusted, my lender refuses to rewrite the mortgage because I am not 5 months past due (Fannie Mae requirement) however with the housing rescue bill that came out today I think there is hope, anyone know much about it?

Answer 1

Nothing has been spelled out clearly.   From what I gather people are going to be able to refi adjustable mortgages to a fixed rate even if they are upside down.    The taxpayers are picking up the refi charges and the banks are crossing their fingers that people do not try to s***w them twice.

Answer 2

Who knows, it is not really designed from what I have read to help people like yourself.  it is more designed to help the banks get rid of their foreclosed property.  

The bill hasn't actually passed yet, and I truly doubt anyone knows what is in that bill.

Either way, personally don't like the idea of bailing out people who bought more than they can chew.  Now I have to help pay for this rubbish.

Answer 3

I know the U.S. government is going to take money out of my paycheck to bail your dumb *** out. Your welcome.

Answer 4

Whats with that grumpy guy up there.

anywho, that is my understanding as well, you refinance and get more  affordable mortgage.

But as i see it, its not people just buying houses they can't afford. What about the real estate agents , trying to get you to buy something you think it would be too much for you, but they help you in anyway they can to make that sale, and those lenders., For them being lenders they should know who can and can't afford it, why would they lend money to someone you can't afford it.

So no, its not just the peoples fault.

Answer 5

I have covered a lot of issues regarding this bill:

http://foreclosureresolutioncenter.com/b...

To answer your main question: No... this bill does nothing for you.  

The start date for the implementation is October 1.

Look at ANYTHING the federal government does: Katrina, Iraq, mailing rebate checks... do they ever do anything on time? Answer: No.

Depending on the state you're in... if you're in a long cycle state, you may be able to fall that far behind without being foreclosed (you don't mention whether or not you're already behind).

It's projected that appx. 2 million borrowers will be in foreclosure in the next two years, and the touters of this bill claim it will help a maximum of 400,000. So, that's a POTENTIAL of 1 in 5 chance of getting this help.

In addtion, this is voluntary -not mandatory- for existing lenders. Not only would you have to qualify, your lender would have to agree to participate.

You also need to meet a few parameters, and your loan must have been originated in the targeted time frame (because you've mentioned it's an adjustable, I'm guessing you'd meet that criterion).

Your lender is jerking you around. You do NOT need to be 5 months behind in order to "rewrite" the mortgage, as they've said and in the end, a modification may prove to be a more feasible solution... PROVIDED that you can qualify (only 1 in 6 applicants get one).

[BTW, Is this a Fannie Mae mortgage or is this one of the subprime ARMS they bought in the last year? ]

I sympathize with you- most servicers are beating the heck out of their borrowers- and this bill is giving many a fair amount of false hope. The good news is, you can probably get a good workout, but you're probably going to have to find someone who knows how to work the system- the amount of mis-information about "How to Avoid Foreclosure," is shocking.