My best friend from way back and her husband have 5 kids between the two of them, and her husband is a law enforcement officer. They got behind on their mortgage by 2 payments and appealed to the bank to modify the loan so that they could continue to make regular payments in the future and remain in their home. They had originally put $15k down on the house when they bought it for $275k and had paid it down to about $240k. The bank offered to let them tack on the 2 missed payments if they agreed to add an additional $20,000 in interest to the mortgage. So they are losing their home.

So much for the American Dream and the wonderful loan modifications that were going to help the general public (I mean, help the banks).

 

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Why didn't your friends accept the modified loan?

Were the payments too high or were they just mad about the extra interest on the back end?

 

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Wow sad. This is happening all over America. The human cost must be great

 

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He has the money to raise 5 kids and buy a house worth over a quarter of a million dollars.He isn't struggling he is spending too much,there is a huge difference...I don't feel even a little sorry for him.If he stops getting his wife pregnant and moves into a more modest house his fiances will be just fine.

 

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I've requested a couple refi quotes for sh*ts and giggles on my two primary properties.

I don't really *need* the refi, but I want to see what I'm gonna get back here in case I can cash-flow out the 2nd property, to make it more profitable on the rental.

No, I didn't ask the CURRENT mortgage holder for it. I've asked my credit union, and my bank who don't hold my loans currently.

I'll let you know what happens. Should be entertaining.

 

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If you have the right things going it is easy. I reduced our interest from 6.5% to 2.75%. Paying less and paying it off two years sooner. If you cannot afford something there is little chance of getting someone else to bend over for you. Obama is just tossing money at his friends while pretending he cares. All he cares about is Obama.

 

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I also found this interesting.

Not enough variables are given though.

What does she do for a living?

Is he a police officer or higher in the food chain?

It sounds as though they bit off more than they could chew.

 

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Bankers are heartless mofos. I see this on a regular basis, people losing their homes. Tough times dont last tough people do.

We need a peaceful revolution now!

 

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I think they should have paid their mortgage, then the evil f'n bankers probably wouldn't have taken their house.

 

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My first question is whether or not they are underwater?

20k on a 30 year mortgage is not a lot of money as far as an interest rate jack. My head hurts too much to do the math, but my guess it's less then 1%.

The only rational thing I can assume here is that they are already underwater and the 20k just isn't worth it. Which I get. And applaud in a way - sometimes you have to know when to cut your losses. I hope he drags out the process and finds someplace new.

All that said, if this is the case, they aren't 'losing their home'. They are taking a calculated loss on purpose. Which is sad, but they aren't victims.

 

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