What's wrong with this picture?

[Aggie Mom]

So I have a mortgage with JP Morgan Chase. I faithfully make every house payment on time and just recently, due to a job change, have had to do without some things to make sure my house payment gets made on time. Now Chase has decided to introduce a new mortgage program to lower the interest rate on some "troubled" mortgages to 2 percent for a few years and help out homeowners who have a negative equity in their home. Of course this new reduced interest rate doesn't apply to me because I pay my mortgage on time and I didn't get an adjustable interest rate on a house that I knew I couldn't afford. The new Chase mortgage program is geared towards borrowers who live in their homes and who "show a willingness to pay." Chase explained this as people that make some sort of house payment, but not the whole payment. WTF???? So I guess the moral of the story is to fall behind on my house payment and then I can qualify for the lower interest rate and refinance without fees.

[Wht95Lightning]

I consider the banks a criminal enterprise that is protected by the government.

On the brite side, you should be proud that you have been able to take care of your own financial responsibilities and not had to put your hand out. :tu:

[dboat]

No good deed goes unpunished

[gbgary]

So I have a mortgage with JP Morgan Chase. I faithfully make every house payment on time and just recently, due to a job change, have had to do without some things to make sure my house payment gets made on time. Now Chase has decided to introduce a new mortgage program to lower the interest rate on some "troubled" mortgages to 2 percent for a few years and help out homeowners who have a negative equity in their home. Of course this new reduced interest rate doesn't apply to me because I pay my mortgage on time and I didn't get an adjustable interest rate on a house that I knew I couldn't afford. The new Chase mortgage program is geared towards borrowers who live in their homes and who "show a willingness to pay." Chase explained this as people that make some sort of house payment, but not the whole payment. WTF???? So I guess the moral of the story is to fall behind on my house payment and then I can qualify for the lower interest rate and refinance without fees.


mortgage lenders and their creative financing along with a falling real estate market caused the negative equity problem. builders had to move product and buyers hoped for continued rise in the property values. you're not being punished, people are being helped to keep their homes. more defaults and abandoned property aren't going to help anyone.

[Silver_2000]

It sucks

Think about the Tax stimulus checks they gave out this year and thinking about giving out another. All they are doing is giving you back some of your own money - but worse is they are giving a BUNCH of your money to lots of people that dont pay any taxes - So if you pay a lot you get less or nothing back - if you pay little or nothing you gets lots back ...

Hmm - scary

[Moonshine]

Ditto what everyone has previously said.

[Ohmsby]

Also heard about senate bill that in a nutshell would allow those who are about to default on their credit cards a 40% reduction in the total owed and up to 5 years no interest repay.

This should work well........

[mikelemoine]

Ditto what everyone has previously said.

Ditto what Moonshine said:D.

AggieMom, glad to hear that you did what was right. Keep in mind those who are being helped now will pay more for credit for years to come, and have probably already had to give up things if they are in dire straits. They didn't get off as easy as it might appear.

In my case, we had to dig into savings to sell our house in Dallas all because there were so many foreclosures in our area. Everyone expects a bargain when prices are down so low. One house was right around the corner from me with the same floor plan and was listed $40K cheaper because the bank wanted to unload it. Ours had many upgrades and no hassles of negotiating with the bank, so the buyer was willing to pay a little more, but not much. Since we had only one viewing of our house in over 4 months, we didn't want to lose the only offer we had. After closing costs and realtor commissions we had to pay $4280 to put someone else into our house. For comparison, we originally projected walking away from the deal with a $22K profit after agent commissions (assuming we sold at our asking price). Just another indirect way we're all paying for this mess. We could have held out for more, but at $2K per month carrying costs and only 1 showing every 4 months, the math didn't look promising. That and the increasing risk of copper thieves stripping empty homes of wiring, plumbing and AC units just forced us to grin and bear it. We feel your pain!

It'll probably get worse before it gets better. Lets hope I'm wrong:eek2:

[Silver_2000]

mortgage lenders and their creative financing along with a falling real estate market caused the negative equity problem. builders had to move product and buyers hoped for continued rise in the property values. you're not being punished, people are being helped to keep their homes. more defaults and abandoned property aren't going to help anyone.
I agree - BUT
We are encouraging people to do irresponsible reckless things. There HAS to be consequences, if the Banks, the Bank execs and the Buyers DONT have consequences then this will just happen again.

To use your words - People are being helped to keep the homes they couldnt afford and shouldnt have purchased. They therefore will be unable to keep them up so your nieghborhood values are heading into the toilet either way. The Banks were making HUGE money charging HUGE fees for these mortgages they should suffer the conseuences to the money grab

[L8 APEX]

I am not sure how to describe how I feel about it...

It just seems like there is no accountability in our society anymore. Run your corporation in the ground, big brother will bail you out. Even though you have made billions at the expense of American citizens.

As individuals you can spend carelessly and purchase way more than you can afford. Even though you consciously enter into purchase contracts, ARM mortgages that are obviously FOOLISH! Never fear, bog brother will bail you out of your own stupidity once again... I understand natural disasters and honest accidents. But these corporate and mortgage bailouts are wrong. I can only imagine how many decades it will take to pay off everyones irresponsible financial choices...:flaming:

[WA 2 FST]

I would take a guess and say that they are offering the 2% rate for a short time... and _then_ it will be "time to pay the piper." Once the people are able to start making payments consistently, the home market gets back on its feet (2+ years will do it), then the banks will drive that ARM _way_ up.

I am very conservative, but I think an ARM is a gamble, and I'd never take it. If you negotiated a good rate a few years ago, then be glad you have it, make the payments and be happy.

Chances are very good that many of these people getting a "break" today, will end up giving their home back to the bank (with the market in much better shape, so the bank can turn around and sell it for a profit) later. It may seem like a great deal for them now, but it will come back and bite later on.

Just my $.02.

[Ohmsby]

Like a lot of you we were "qualified" for a home 3 times the cost of the one we are in. Nothing down.

I knew I was not "qualified" to write that big a check every month.

it will be interesting to see were we are in three years, five years. Interestingly enough DFW has not taken this as hard as say South Florida or Vegas

[mikelemoine]

http://articles.moneycentral.msn.com/CollegeAndFamily/RaiseKids/feel-like-a-sucker-youre-not-alone.aspx

[dboat]

http://articles.moneycentral.msn.com/CollegeAndFamily/RaiseKids/feel-like-a-sucker-youre-not-alone.aspx


good article:tu:

[Aggie Mom]

Good article. At least I know that I am not alone in my feelings. Meanwhile; my neighbor down the street, who has a variable rate mortgage and is benefiting from the WAMU/Chase mortgage bailout, just bought a new Dodge Charger and couldn't wait to show it to me. Yeah, I feel great....:icon_rolleyes: Damn, don't people ever learn?

[dboat]

Good article. At least I know that I am not alone in my feelings. Meanwhile; my neighbor down the street, who has a variable rate mortgage and is benefiting from the WAMU/Chase mortgage bailout, just bought a new Dodge Charger and couldn't wait to show it to me. Yeah, I feel great....:icon_rolleyes: Damn, don't people ever learn?

please take comfort in what you have done and are doing is the right thing.. in the end, you will profit from this and he will only have an old Dodge..

Dana

[Moonshine]

please take comfort in what you have done and are doing is the right thing.. in the end, you will profit from this and he will only have an old Dodge..

Dana

Ditto what Dana said.....I think....I hope. Cathy, I share your angst. I meet people every day who make 1/2 what I do, and yet they're living in houses more expensive than mine and driving cars that cost 3x what I can afford. I just hope that when they're taxing the h*ll out of me in retirement to feed these fools that I can take some pleasure in the fact that I did plan and save for retirement.

[Aggie Mom]

I just hope that when they're taxing the h*ll out of me in retirement to feed these fools that I can take some pleasure in the fact that I did plan and save for retirement..

I have to admit that I will take some enjoyment in that. I've got my 401K and IRA's. I actually don't have to work my entire life (like they will). :tu:

[Mark #2]

I meet people every day who make 1/2 what I do, and yet they're living in houses more expensive than mine and driving cars that cost 3x.

Similar experiences... similar pay have houses that are 3X and cars are +2x to +10x when you consider the value/age of our cars...
and we are concerned about debt, savings and retirement. I don't have any idea how they do this.:confused:

[mikelemoine]

+1, I know plenty of people who can't afford to pay their mortgage but manage to have money to go out bar hopping or shopping every weekend. They claim they need to do these things to keep their sanity since they work hard. Personally I keep my sanity by never getting back under the credit card monster. Took me years to get out of debt in my 20s and I won't fall for that again! Some just don't seem to learn from their mistakes.

[L8 APEX]

I don't buy clothes or furniture. I waste all my money on Crown products and diesel fuels:(