02-19-2009, 02:37 PM
TLB wrote:
Suze Orman said this morning:
- More than 5% upside down, you don't qualify for aid under the plan
- Poor credit, you don't qualify
- Payment adjustment is only for five years, after that time it will begin ratcheting back to current terms
I haven't explored the plan, but maybe more of a middle ground than some folks believe?
In short, those who really need help won't qualify. Let me add couple more. Only conforming loans qualify(for what nobody knows yet). Bye bye California. Investments homes don't qualify. Bye Bye, Phoenix and Vegas. In Phoenix there are subdivisions after subdivisions with nothing more than brand new investment properties that were never sold. How do you dry out that glut?
Then there is this clincher. The lenders are supposed to make the payments 31% of owners income. How do you do that? For some of these mortgages principle payment alone is more than 31%. You expect them to give out interest free loans? Is there money in the bail out for that?