Perhaps it's just me and my narrow focus...

[SKKY]

...but the real "Go Big" idea from last night's speech was the assertion of allowing (or helping) homeowners refinance their mortgages to a much lower, 4% rate. That to me seems like it could be huge, and would have immediate effects, assuming it gets done before Christmas. I don't see or hear many people talking about it.

[FrenchieCat]

1. Yes.....

The question is whether people were discouraged from the time when banks were
making it harder rather than easier to modify one's loan. It looks like it's gotten
easier, but I'm not sure the word has gotten out on that. Our modification reduced
our loan to 2% and knocked 90,000+ off our principle. That was with Wachovia/Wells fargo
and they were the original loan lender.

The point is it has gotten much easier, and it appears that it will get easier still.....
but folks have to go for it, instead of not doing anything due to their skepticism.

[Lionessa]

2. It might have helped 2 years ago, at this point, I doubt it. Too many are already

foreclosed upon and bankrupt. He should've put a moratorium on foreclosures as soon as the robo-signing shit hit the fan, or even earlier to help folks weather the joblessness or job/income reductions, instead his administration is trying to cover that banks' asses to further screw homeowners. Bah!

[ClarkUSA]

3. What proof do you have for your dismissal of this idea, given many like myself are considering it?

Negative rhetoric is all I've been reading. You have yet to back up a single claim you've made so far.

Legally speaking, how is a POTUS supposed to "put a moratorium on foreclosures"? He is not a dictator like Hugo "Hearts Gaddafi" Chavez.

[FrenchieCat]

4. Do you really think the President, via executive order could have

put a moratorium on foreclosures nationwide?

Or do you mean he should have moved to nationalized the banks
via executive fiat.....

What country to do you think you live in? Cuba? :shrug:

You are one of those folks that makes suggestions as to what others should have done
so out of the reach of reality, until it is hard to take you seriously as anything other
than a serial unreasonable and unrealistic barker....or one of those, well, you know....

[Honeycombe8]

5. How would that help create jobs? nt

[ClarkUSA]

6. It would help the housing sector & lead to greater consumer confidence, more hiring & spending

Anything that helps stabilize the economy is good for the job market because it creates a beneficial climate for hiring. I can tell you right now that I am awaiting the details to see if I would qualify.

[Honeycombe8]

7. I see. You might be right about that. As for your situation....good luck, hope yu get it. nt

[ClarkUSA]

8. Thanks.

:hi:

[FrenchieCat]

9. Good Question!

"The benefit of refinancing is that it reduces monthly payments and creates a little bit of breathing room in household budgets," McBride says. "That means more money that can be pumped back into the economy."

experts say lower mortgage payments could lead to fewer foreclosures, the glut of which is currently crippling the housing market. With thousands of foreclosures already bottlenecked in the market, limiting the number of fresh foreclosures will help stem the downward march in home prices. And ultimately, higher home prices are good for the economy.
http://money.usnews.com/money/business-economy/articles/2011/09/08/refinancing-out-of-reach-for-many-americans


Mortgage Refinancing Can Provide Economic Stimulus For Millions
Gina Pogol

When refinance mortgage rates drop, homeowners who lower their monthly payments free up cash that can be spent elsewhere in the economy. Today's refinancing homeowners are more likely to refinance in order to shorten mortgage terms or consolidate debt. No matter how you could use extra cash, it's worth the time to determine whether a refinance is right for you.

Mortgage Refinancing Can Provide Economic Stimulus For Millions

During the last mortgage refinance boom in the early 2000s, homeowners collectively saved more than $61 billion in interest payments, reported the Wall Street Journal. Much of this extra money in homeowners' wallets was put right back into the economy, which helped fuel economic growth.

As mortgage rates continue to drop, economists debate how much a new refinancing boom might help the economy achieve a much-needed recovery.
http://www.guidetolenders.com/refinance_mortgage/articles/mortgage-refinancing-can-provide-economic-stimulus-for-millions.jsp

How mortage refinancing could spark and economic recovery......Interview on that subject here....
http://www.npr.org/2011/09/07/140242036/how-mortgage-refinancing-could-spark-economic-recovery


as well as

[elleng]

10. Don't know about people talking about it,

but it got a HUGE, positive response from the audience.

[FrenchieCat]

11. Well, it is good that we are talking about it now......

Some folks are so discouraged, they have stopped thinking of trying
things that would actually work, if they tried them. Kind of one of those
catch22 when word of mouth actually makes good programs not work.

Sometime I think it is done by design.

It's like the little engine that couldn't....
instead of shouting from the rooftops,
yes, we can.

[EC]

12. Since just about everyone's credit score is in the

dumper, I'm not sure how it will help. I thought good my daughter can refinance the ARM mortgage they got stuck in, but since the payments went up, they've been late on payments so many times. I'm sure they won't even be able to qualify now. I'm also guessing many who have never been late paying or in money trouble, now are and won't qualify either.

But if the qualifying measures are lowered too, then it really could help.

[SKKY]

14. I'm hoping there will be something to help in that situation as well...

...but that would certainly be a problem.

[FrenchieCat]

16. When you go through the modification program, they don't look at your credit score.....

far as I know...because one had already qualified when they got the original mortgage.

As for qualifying, one just has to have enough income to make payments
on a home with a significant smaller (like 2% to 4%) fixed rate.

If you have no income, then yes, a person probably wouldn't qualify.

I believe that the formula is that you must earn at least 31% of what it would take
to service a 2% to 4% fixed loan.

In addition, one should ask the lender, (if they are underwater) if they can have
some of their principle forgiven or reduced. We did that, and they did just that.

The best mortgage company to start with is the one currently holding the mortgage note.

If that doesn't work, or has already been tried, then they should got to this website and see if they can get help: http://www.making-homes-affordable.com/
and here: http://www.home-affordable-modification-program.com/hamp-program-help/getting-information

[yurbud]

13. that did sound good.

[SKKY]

15. And it seems like it could be the biggest stimulus out of the whole package....

...considering I keep hearing we're on the verge of another housing colapse. Which makes the wonder why more people haven't talked about it.