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Message
re: One reason the market has been slow to correct - FHA bailing out delinquent mortgages
Posted on 5/31/23 at 11:01 am to SlowFlowPro
Posted on 5/31/23 at 11:01 am to SlowFlowPro
quote:
affect prices on a larger scale
It is an interesting puzzle to examine. But, generally speaking, those FHA loans are smaller loans on less expensive homes. With that in mind, I think the OT Ballers should see limited impact
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Posted on 5/31/23 at 11:18 am to stout
quote:
One reason the market has been slow to correct - FHA bailing out delinquent mortgages
This says it’s a plan they are proposing, not one they’ve been doing..how has this proposed plan made the market “slow to correct”?
Posted on 5/31/23 at 11:22 am to stout
On the surface. I’ve got no issues with fha loans being restructured to allow people to stay in their homes. Temporary measures should be written to sunset which unfortunately is the crux of why I’d potentially oppose this measure. The economy is in a fragile state and I’m ok with ideas not involving cash injection to soften the landing.
Posted on 5/31/23 at 11:22 am to TROLA
quote:
. I’ve got no issues with fha loans being restructured to allow people to stay in their homes
At the current interest rate, though, right?
Posted on 5/31/23 at 11:32 am to SlowFlowPro
quote:
At the current interest rate, though, right?
Yes. An extended mortgage with a mediated rate to balance the current rate with loan rate. Plenty of good models could be applied to balance loan length and rates.
I’d only really apply this to fha because of the government regulations tied to those loans.
Posted on 5/31/23 at 11:42 am to TROLA
If they're just taking the arrears, and putting it into a 2nd mtg to be paid off after the first, at current rates, OK, that shite might work. The fear of an outright bailout comes many many years down the road. So, kick the can? What could go wrong?
Posted on 5/31/23 at 11:45 am to stout
quote:
The financially responsible get screwed no matter what in the current system
Rome as a republic fell when the plebes realized they could vote themselves the wealth of others.
Posted on 5/31/23 at 11:46 am to Dawgfanman
quote:
This says it’s a plan they are proposing, not one they’ve been doing..how has this proposed plan made the market “slow to correct”?
Mass loan modification started under COVID and hasn't really stopped. FHA is basing doing this because they claim the COVID modification was a huge success. HUD is looking into mass adoption of it based on COVID.
I'll see if I find the article from HUD saying they want to make this permanent. It was a few months ago.
Posted on 5/31/23 at 11:48 am to SlowFlowPro
quote:
At the current interest rate, though, right?
There's a million ways to modify mortgages
Posted on 5/31/23 at 11:50 am to stout
Yet another way the rest of have to subsidize people that can’t get their shite together. When will it end….
Posted on 5/31/23 at 11:51 am to stout
quote:
As part of it, borrowers would avoid giving up their super-low mortgage rates.
Wait, if people with super-low rates are falling behind, we have a huge problem on our hands.
How is this happening?
I can understand if people who bought recently at higher rates are finding out they bit off more than they can chew, but people with lower rates?
With house appreciation, I don't understand how these people can be behind.
This post was edited on 5/31/23 at 11:52 am
Posted on 5/31/23 at 11:53 am to LSUFanHouston
If they bought, even with appreciation it doesn't mean they're in the black (with a low down payment).
Also, selling only helps if they can buy something else, which the high interest rates have destroyed.
It's a game of chicken.
Also, selling only helps if they can buy something else, which the high interest rates have destroyed.
It's a game of chicken.
Posted on 5/31/23 at 11:53 am to stout
I hate this as much as the next guy, but if we’re gonna bail people out at least people get to keep their homes and we don’t prop banks up with free capital.
Posted on 5/31/23 at 11:55 am to SquatchDawg
quote:
subsidize people that can't get their shite together. When will it end..
You're looking at it the wrong way. Go play the game from the other side of the table. Go buy yourself a couple of foreclosed properties for 50 cents on the dollar, spend 25K sprucing that fricker up, then sell or rent the sum bitch out. Just like the OT Ballers have been doing for decades
No one, and I mean NO ONE gives one shite about subsidies as long as they can get their share. Pay my arse commission on subsidized insurance, I'm cool with it. Let me buy a house for pennies on the dollar, I'll do that shite. Just find a way to get your piece
This post was edited on 5/31/23 at 12:03 pm
Posted on 5/31/23 at 11:56 am to stout
Hello Stout, you seem to be knowledgeable about all this nonsense. I’m currently trying to get a house for nothing while I’ve got some cash in my pocket. What do you suggest? I’m working all the angles I know of.
Posted on 5/31/23 at 11:58 am to LSUFanHouston
quote:
Wait, if people with super-low rates are falling behind, we have a huge problem on our hands. How is this happening? I can understand if people who bought recently at higher rates are finding out they bit off more than they can chew, but people with lower rates? With house appreciation, I don't understand how these people can be behind
FHA buyers are among the least qualified borrowers. Their interest rate and “equity” don’t change the fact that they typically have lower credit scores, less in reserves, and little down payments…
Posted on 5/31/23 at 12:03 pm to SlowFlowPro
quote:
If they bought, even with appreciation it doesn't mean they're in the black (with a low down payment).
3.5% down payment
House appreciation
How in the world are they not in the black?
It might not be by 100K, but it's something, and that should qualify them for more traditional programs.
And again.. if they bought at low rates, then they can't afford now, it's got to be a more traditional reason like job loss, and we have a system to deal with that.
THe FHA is propping this up to make Joey B look good.
Posted on 5/31/23 at 12:06 pm to stout
quote:
One reason the market has been slow to correct - FHA bailing out delinquent mortgages
You thread title says that FHA has been bailing out mortgages and that is propping up the market, but your post says they are “expected to propose a plan” to bail out mortgages in the future.
Posted on 5/31/23 at 12:16 pm to JohnnyKilroy
quote:
You thread title says that FHA has been bailing out mortgages and that is propping up the market, but your post says they are “expected to propose a plan” to bail out mortgages in the future.
As I said, they never stopped the COVID modifications and this is just an extension of that but since they can no longer claim it is due to Covid because we finally ended the CV emergency they are going to use another reason to keep it going
From January 30th, 2023
FHA to Expand and Extend COVID-19 Mitigation Programs
quote:
If you have a Federal Housing Administration (FHA) insured mortgage and you are falling behind on payments in this post-pandemic era, there are still options to avoid default.
On Jan. 30, the FHA announced that it is “expanding and enhancing” it's set of loss mitigation options developed during the pandemic—the enhancements extend FHA’s highly effective COVID-19 loss mitigation options to all eligible borrowers who fall behind on their mortgage payments, regardless of the cause of their delinquency.
For servicers, the update now allows them to use the full 30% of the FHA’s partial claim option, rather than the previous 25% to help maximize the number of borrowers who are eligible to keep their homes.
While servicers can extend these new options immediately, all servicers must implement these changes by April 30 of this year.
“We are committed to ensuring that no FHA borrower experiences foreclosure unnecessarily,” said Assistant Secretary for Housing and Federal Housing Commissioner . “FHA’s COVID-19 forbearances and streamlined COVID-19 loss mitigation options have successfully helped millions of struggling borrowers in the last two fiscal years alone. Our action today lets us capitalize on what we have learned through the pandemic to continue helping borrowers avoid foreclosure, regardless of the nature of their hardship.”
Straight from the HUD website
FEDERAL HOUSING ADMINISTRATION EXPANDS ASSISTANCE OPTIONS FOR BORROWERS STRUGGLING TO MAKE MORTGAGE PAYMENTS
So yes my title is correct
Posted on 5/31/23 at 12:20 pm to LSUFanHouston
quote:
3.5% down payment
House appreciation
How in the world are they not in the black?
Penalties and fees on late payments can rack up fast and eat up equity.
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