richard_nogginn

Three Problems with the Fannie / Freddie Mortgage Modifications

If I were in the situation of loosing my home for whatever reason or having government assistance, I'd stay. Yeah the value might be down and yeah it will take along time to get it back, but the kids wouldn't be uprooted and I would keep the wife happy. As far a I'm concerned those intangibles are worth more than money.

I saw comments about rent. Actually we all are paying rent until we get the mortgage paid off. After the mortgage is paid the house can still be taken away in some States using eminent domain laws. I'm sure there will be some morons who will try to use 90 day delinquencies to lower their payments. I'm just as sure that in 180 days there will be a law passed making that illegal and it will be backdated till 11/11/08.

I think adjustable rate mortgages need to be scrapped and balloon payments made illegal. Both of these methods add fuel to the fire. In the 1970's all mortgages (that I knew about) were fixed 15 or 30 year rates.

Folks who have a few thousand to spare might want to go look at the houses for sale at Fannies website. You can find some pretty good bargains. Fannie has 67,000 homes to get off the books so it's sale time.