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Pensacola Discussion Forum » General Discussion » I need some mortgage expertise

I need some mortgage expertise

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no stress
Hospital Bob
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1I need some mortgage expertise Empty I need some mortgage expertise 7/10/2012, 3:51 pm

Hospital Bob

Hospital Bob

I have a friend who's daughter and son-in-law are upside down on their mortgage. Their mortgage interest rate is 7%. They were turned down by one lender when they tried to refinance to get a lower rate because they were upside down. Does anyone know of any way to refinance when you're upside down?

no stress

no stress

HARP they may qualify for that

TEOTWAWKI

TEOTWAWKI

Gunz wrote:HARP they may qualify for that
My credit union wanted to give me a HARP loan. I went through and got approved and everything but when I finally was given the details it would take me many years to recover the loan costs that were rolled into the loan..of course I could have just paid the 5 grand instead of rolling it into the loan... The interest rate around 4% was nice but still time to recoup the investment was ridiculous. Sometimes it's better to just bite the bullet and stay right where you are.

othershoe1030

othershoe1030

As good consumers we are educated to maintain contracts once we've signed them, things like our mortgages. When a business gets in a situation that to continue it would mean large losses they make a business decision to drop the bad asset and declare a loss or whatever.

I understand the ethics of the homeowner's situation but somehow this doesn't seem to apply to business decisions. Why isn't it just a good business decision to stop making outlandish payments on a mortgage that's way underwater unless you have some emotional ties to the property? Am I missing something here or is there at least what appears to be a double standard?

Guest


Guest

TEOTWAWKI wrote:
Gunz wrote:HARP they may qualify for that
My credit union wanted to give me a HARP loan. I went through and got approved and everything but when I finally was given the details it would take me many years to recover the loan costs that were rolled into the loan..of course I could have just paid the 5 grand instead of rolling it into the loan... The interest rate around 4% was nice but still time to recoup the investment was ridiculous. Sometimes it's better to just bite the bullet and stay right where you are.

You would have saved probably much more on the interest w/ the lower interest rate.

Markle

Markle

othershoe1030 wrote:As good consumers we are educated to maintain contracts once we've signed them, things like our mortgages. When a business gets in a situation that to continue it would mean large losses they make a business decision to drop the bad asset and declare a loss or whatever.

I understand the ethics of the homeowner's situation but somehow this doesn't seem to apply to business decisions. Why isn't it just a good business decision to stop making outlandish payments on a mortgage that's way underwater unless you have some emotional ties to the property? Am I missing something here or is there at least what appears to be a double standard?

No double standard, individual owners can declare bankruptcy and start over.

Sometimes it is a good business decision to stop making those payments if there is no light at the end of the tunnel. It will depend on how far underwater they are today. Prices will probably bounce along a plateau for another two years before we start to recover.

Thank you President Barack Hussein Obama.

TEOTWAWKI

TEOTWAWKI

Dreamsglore wrote:
TEOTWAWKI wrote:
Gunz wrote:HARP they may qualify for that
My credit union wanted to give me a HARP loan. I went through and got approved and everything but when I finally was given the details it would take me many years to recover the loan costs that were rolled into the loan..of course I could have just paid the 5 grand instead of rolling it into the loan... The interest rate around 4% was nice but still time to recoup the investment was ridiculous. Sometimes it's better to just bite the bullet and stay right where you are.

You would have saved probably much more on the interest w/ the lower interest rate.
Oh that's true the payment was over 200 dollars less a month but divide 200 dollars into 5000 dollars and that's how many months before you recover...I will sell way before then.

Sal

Sal

othershoe1030 wrote:As good consumers we are educated to maintain contracts once we've signed them, things like our mortgages. When a business gets in a situation that to continue it would mean large losses they make a business decision to drop the bad asset and declare a loss or whatever.

I understand the ethics of the homeowner's situation but somehow this doesn't seem to apply to business decisions. Why isn't it just a good business decision to stop making outlandish payments on a mortgage that's way underwater unless you have some emotional ties to the property? Am I missing something here or is there at least what appears to be a double standard?

That's an excellent observation. For working class people, their home is often the biggest investment of their lives. They pour their blood, sweat, and tears into maintaining and upgrading their investment. There's a huge emotional attachment to that sort of commitment. The 1%, on the other hand, pay others to maintain and upgrade their properties, so the emotional attachment is much less. They walk away from bad investments all of the time. A bad investment is just that - a bad investment.

othershoe1030

othershoe1030

salinsky wrote:
othershoe1030 wrote:As good consumers we are educated to maintain contracts once we've signed them, things like our mortgages. When a business gets in a situation that to continue it would mean large losses they make a business decision to drop the bad asset and declare a loss or whatever.

I understand the ethics of the homeowner's situation but somehow this doesn't seem to apply to business decisions. Why isn't it just a good business decision to stop making outlandish payments on a mortgage that's way underwater unless you have some emotional ties to the property? Am I missing something here or is there at least what appears to be a double standard?

That's an excellent observation. For working class people, their home is often the biggest investment of their lives. They pour their blood, sweat, and tears into maintaining and upgrading their investment. There's a huge emotional attachment to that sort of commitment. The 1%, on the other hand, pay others to maintain and upgrade their properties, so the emotional attachment is much less. They walk away from bad investments all of the time. A bad investment is just that - a bad investment.
Hmm, I wasn't even thinking of the 1%'s homes but that's true too. They could be underwater with their mortgage but think of it as just another business investment, the decision to be based on dollars and cents not moral obligation.
It is the thought that we're supposed to be true to our word, that sort of assumption or attitude that keeps middle class people pouring good money after bad and making their situation worse by trying to "keep their word". It is a whole different way of looking at the situation

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