Comments on: Wow! A Great Plan To Rescue Homeowners Facing Foreclosure. REALLY!

By: Angelica Miller

Angelica Miller — Tue, 23 Dec 2008 18:02:12 +0000

What happen went home loan people don’t help and you try to work with them lowering your payment and they say you don’t make enough. We are making some kind of payment what will happen to us.
My husband check are getting lower and lower by the month and we don’t want to lose our house.
What are our opiontion? We been trying and getting no were.

By: Houston Real Estate

Houston Real Estate — Tue, 21 Oct 2008 02:43:51 +0000

First, you might have noticed that in cases where the housing market has been stable such as Texas, Tennessee, Oklahoma etc the plan would not be required and therefore your criticism is irrelevant.

I have to disagree. Even more stable areas, foreclosure levels are still quite high. If the whole purpose of the plan is to help homeowners in trouble, there are plenty that could use such help in Texas, Tennessee and Oklahoma. My argument was that in these areas, such a plan would not be as effective as in certain others where the disparity between market rents and market mortgage payments was significantly higher.

I think the plan could have extremely positive effects in certain areas while being equally ineffective in others.

By: Rehab702

Rehab702 — Mon, 20 Oct 2008 05:42:50 +0000

You mention “the bank” as the owner of the mortgage. Frequently (if not most of the time) the bank is only the servicer. The mortgage itself has probably been securitized, cut up into pieces and sold to investors and investment funds around the world. It could be almost impossible to find the actual owners of even one mortgage, let alone thousands. It’s a great plan in theory, the reality is that it would be almost impossible to execute.

By: Bankruptcy Lawyer Directory

Bankruptcy Lawyer Directory — Mon, 20 Oct 2008 05:41:02 +0000

While this plans sounds pretty logical, I’d be interested to see who is the arbiter for “market based rents”. If the market based rents are set too low, people will have a huge incentive to start defaulting on their payments so they can take advantage of this new plan.

By: BAMF

BAMF — Mon, 20 Oct 2008 00:29:27 +0000

*the plan

By: BAMF

BAMF — Mon, 20 Oct 2008 00:28:52 +0000

Dear Houston Real Estate,

First, you might have noticed that in cases where the housing market has been stable such as Texas, Tennessee, Oklahoma etc the plan would not be required and therefore your criticism is irrelevant.

Secondly, if the whole thesis behind from my point of view having actually read it, is that the rents would be sufficiently less than the mortgage payments and overall cost of upkeep that the homeowner is currently breaking his back to pay. If what you say were to happen in a few cases, however, the people who are struggling to make their mortgage payments are usually the same people who were dumb enough to enter into those contracts in the first place and therefore they deserve a bit of the consequences.

Lastly, if you look at the actual statistics, nationwide market rents are on average 26% below the market inflated “value” of these homes.

By: Houston Real Estate

Houston Real Estate — Sun, 19 Oct 2008 20:55:41 +0000

This idea is innovative and noble but I’m afraid it wouldn’t work and
here’s why:

1. In many parts of the country where the housing market has been
somewhat stable like Texas, Tennessee, Oklahoma etc prevailing market
rents are pretty much on par with what a homeowner would payif they
owned the place.Now if the homeowner is having difficulties making his
current mortgage payments, he would also have an issue paying the rent
under this plan.

2. If the homeowner turned tenant did not make his rent payment I
would assume that the bank would evict them from the property.
Wouldn’t this put them in the same position that they’re in now in the
sense that if they wanted to, banks could opt to rent out their REOs
instead of trying to liquidate them.

I think this plan is along the right track of thinking but its effects
would be limited to areas heaviest hit like California or Florida
where mortgage payments significantly outpace prevailing market rents.