Just saw this on MSN:
Apparantly, there’s ANOTHER deal being hammered out to help homeowers (misspelled on purpose). Here’s how this deal might work out:
• $17 billion would go toward principal reductions. If 1 million homeowners were to be helped, that would equal an average reduction of $20,000 each. About 11 million U.S. homeowners are underwater on their mortgages.
• $5 billion would go toward homeowners affected by the deceptive practices and to state and federal housing programs. The settlement envisions a payment of $1,800 each to 750,000 affected homeowners. About 8 million Americans have faced foreclosure in the past four years.
• $3 billion would help homeowners refinance their mortgage loans at a rate of 5.25%. That’s more than 1 percentage point above current market rates, but most underwater homeowners are not eligible for refinancing. Some, however, have received rates as low as 2% as part of mortgage modification deals.
The media is doing a tremendous job at painting these homeowners as victims.
Question: Where’s my mortgage principal writedown?
Basically, this “deal” screws all the people who were RESPONSIBLE and bought homes they could afford.
Yes, some banks foreclosed improperly. It’s not known if the homeowners being foreclosed upon deserved it or not. I guess if a bank tries to foreclose without the proper paperwork, the deliquent borrower can just stay there forever. Not sure how that works.
It’s a big mess.