Holiday Gift From Fannie, Freddie: Foreclosure Halt
Kathryn Glass
The holidays could spell relief for many troubled homeowners, as two mortgage giants have decided to keep people in their homes a little longer.
Mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) have announced they will suspend foreclosures between November 26 and January 9. The government-sponsored entities will use the time to determine if borrowers are eligible for a loan modification plan.
The loan modification program restructures mortgage loans so that primary payments do not exceed 38% of borrowers’ monthly income before taxes.
The program applies to homeowners whose loans are held by Fannie and Freddie that are at least three months behind on their mortgage payments, in an effort to slow the increasingly dire mortgage crisis
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and what happens after the three months extensions? where is the money to come from, if the people are already in foreclosure status? ever since obama was named pres-elect, the market has gone down the toilet, (almost in a single flush)and i personally(as a senior citizen, who has worked since i was 15) dont want to pay for someone else's mortgage, with my tax money...no one was there to help me pay my mortgage, during tough times...i also dont want to pay for someone else's luxury spa vacations, their jets, their chauffeur driven cars, the car company bailout...i already pay far too much in taxes, pay my bills on time, help out my family when i can, and volunteer when needed, but i think it is totally unfair for those in congress or the new pres-elect, to expect senior citizens or others,to contribute to the bailout of banks, (poor management and greed) the car companies (union and poor management)fannie mae and freddie mac (greed at the top and trickled down) and lastly, the banks...especially citibank...they had to know they were in a bunch of trouble long before they announced it and declared they would have to lay off huge numbers of people. they are trying to blame this on bush also, but they should be looking much more closely and with a great deal of anger, at congress (do nothing congress) and the effect the (emperor has no clothes) pres-elect has had on the country's financial institutions, first.(obama and his wife, michelle, hisbelle, spend $700.00 for dinner for two...i dont spend $700.00 in 3 months, for groceries.)
I think Obama has to set an example as our New President and is going to have to cut back on his luxury for sure. I still find it very hard to understand why people thought he somehow was in touch with the average people struggling when He is a big part of the problem within Washington to begin with. No one ever questioned his mansion or how he got it yet McCain was pummeled for owning several CONDOS in addition to his residence, which some are income property and others could have been for his children. The double standard never ceases to amaze me. Still amazes me today how B. Clinton kept the Presidency while being caught receiving fellacio in the Oval office with an aide. Crazy. If it had been a republican... he would have been out on his ear, sent packing in shame. I would love to see a return to the days of objective, factual reporting by the media and not knowing who they supported or voted for during an election Campaign. As far as the foreclosure stuff... I hear that some banks are renegotiating the mortgages at todays rates and values, which is how housing should work anyway. payments should only be allowed to go up a certain percentage no matter what but they should also be able to come down and give the owners breaks they get when interest rates and housing prices are lower.
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