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Suze Orman Money Matters

Suze Orman, Money Matters

Some (Limited) Relief for the Mortgage-Stressed

by Suze Orman

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Posted on Thursday, January 24, 2008, 12:00AM

If you were busy with holiday travels and shopping in late December, you might have missed the fact that President Bush signed into law new legislation designed to help homeowners in deep mortgage trouble.

Forgiven, Not Forgotten

The most significant change under the new law is tax relief for people who sell their home for less than the remaining balance on their mortgage. Under the old law, even if the lender agreed to "forgive" the difference between the home sale price and the mortgage balance, the IRS wasn't so lenient. Tax regulations required lenders to report the amount that was forgiven as gross income received by the seller, in effect handing sellers a tax bill on income they never actually received.

For example, if you sold your home for $200,000 but your remaining mortgage balance was $225,000, you would've faced a tax bill on the $25,000 difference that your lender forgave.

With the new legislation, that tax has been eliminated until Jan. 1, 2010. So at the very least, if you're forced to sell a home you can no longer afford, and your lender agrees to forgive any unpaid mortgage balance, you no longer have to worry about a hefty tax bill as well. (This tax break is retroactive to Jan. 1, 2007.)

Other Good News

There was also a small bit of good news for homeowners with private mortgage insurance (PMI): Congress voted to extend the deductibility of PMI premiums until Jan. 1, 2010.

Only homeowners with adjusted gross incomes below $100,000 are eligible for a full deduction (it phases out between $100,000 and $110,000), and only mortgages for primary residences originated after 2006 are eligible. A PMI trade association estimates this tax break will result in an average $350 annual savings for homeowners eligible for the deduction.

The final bit of housing-related legislation provides tax relief for surviving spouses. If a surviving spouse opts to sell a primary residence within two years of the death of the other spouse, the surviving spouse is eligible for a $500,000 capital gains exclusion, rather than the old $250,000 exclusion that applies to individuals.

Hope for Some

In addition to these new laws, Washington is also busy pushing a voluntary relief program for the mortgage-stressed. The HOPE NOW alliance, which features Treasury secretary Henry Paulson as a lead flag bearer, announced a plan in early December that should be up and running soon. The plan allows some subprime mortgage holders to refinance, or lets them lock in their current interest rate for five more years -- a deal that has been dubbed a "tease freeze."

I know the issue of mortgage assistance isn't necessarily popular with many of you. A December 2007 CNN poll reported that 51 percent of respondents were in favor of "special treatment" for homeowners facing default and foreclosure, while 46 percent were against any special treatment. Those of you facing a big mortgage reset are obviously in the pro-HOPE NOW camp.

But before you breathe a sigh of relief, you need to understand the severe limitations of the plan. First, it's voluntary, meaning lenders are encouraged to offer the relief programs but not required. In fact, the plan comes not straight from the White House or Treasury Department, but from the American Securitization Forum, a consortium of money managers (read: hedge funds and Wall Street firms sitting with the distressed debt), as well as all sorts of mortgage lenders and servicers.

You don't need to be a rocket scientist to realize that the group's primary motivation is to help investors holding the mortgage debt, not the actual homeowners with the exploding mortgages. Moreover, the eligibility rules will make it tough for many people to quality for help. In fact, the Center for Responsible Lending estimates that the president's plan being pushed by Secretary Paulson could help less than 10 percent of subprime borrowers.

Five-Year-Freeze Facts

The full rundown of the HOPE NOW plan is available here, but here are the major points that determine if you're eligible for a five-year freeze:

• If your mortgage has already reset, you're out of luck.

• Only adjustable rate mortgages made between Jan. 1, 2005, and July 31, 2007, are eligible. (Option-only loans aren't eligible.)

• You're also out of luck if your lender happened to keep the loan on his books rather than sell it into a securitization pool -- only securitized loans are eligible for this plan. Is there better proof that this effort isn't so much about bailing out homeowners as bailing out investors?

• Finally, your interest rate must reset between Jan. 1, 2008, and July 31, 2010, and the new payment must be at least 10 percent higher than your current payment.

Meet all the above criteria and get your restructure rolling before the initial reset and you may be in luck. But keep reading:

• Only subprime adjustable rate mortgages are eligible. What qualifies as subprime? Well, the quick test is that you must have a FICO credit score below 660. If you have a higher score, the lender will look at your income to determine eligibility.

The theory behind limiting the freeze option to homeowners with low FICO scores is that borrowers with higher FICO scores should be able to refinance. At least that's the theory for now; recently, Secretary Paulson has noted that more prime borrowers are falling behind on their mortgage payments.

• You better be up to date with your mortgage payments. If you're currently more than 30 days behind on a payment, or if you've been 60 days late more than once in the past 12 months, you won't qualify for the 5-year freeze program.

A Potential Security Blanket

FHASecure, launched in the summer of 2007, is another government push to help the mortgage-stressed. The crux of this program is to make it easier for borrowers hit with resets to refinance.

The program is extended to homeowners whose mortgages reset between June 2005 and December 2009. To qualify, you must have been on-time with your payments prior to the reset, have at least 3 percent equity in your home, and have a solid employment history and the ability to afford mortgage payments on a refinanced loan. You can learn more here.

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  • Greg&#39;s Page - Monday, February 11, 2008, 6:27PM ET  Report Abuse

    • Overall: 5/5

    The article is very informative and lets us, the reader, know about new laws and potential new laws regarding real estate loans. I like the readers comments and I can see both sides of the argument. I side with personal responsibility. If you sign a contract, you are putting your name on the line and making a promise to fulfill your obligations. I agree that things happen; people lose jobs, they have a tragedy, etc. I think that this is the exception when it comes to people defaulting on their contractual obligation. I know that "greed", "bragging rights" and "keeping up with the Joneses" were some of the reasons I purchased my first home in 1989 (at the top of the market). I did everything I could to keep from defaulting, because I felt it was my responsibility for signing the loan contract. I made a promise. Suze also points out that the "bail out" is for people who initially purchased a home with a sub-prime mortgage. Sub-prime tells me their credit wasn't too good at the time of purchase. Sub-prime tells me that they made promises in the past that they didn't keep. Sub-prime tells me that they don't understand what it means to sign your name - to give your word. This is what Honor is about, so why should we bail them out? And as Suze points out, we're really bailing out Wall Street. I don't think the government should create laws to bail out the investment bankers. My final point is that laws like this set a precedence; the government will bail you out if you are part of a large group that makes a mistake. I think this is sending the wrong message to the citizens of our wonderful country. Thank you.

  • admrilBubba - Monday, February 11, 2008, 6:21PM ET  Report Abuse

    • Overall: 4/5

    Good Job, you gave the facts available not so much your Comments. I fell victim to the mortgage scam put to me by Ameritech, when we got the loan we were told if we pay on time and not miss any payments our interest rate would go down if the rate went down. We did everything right, the rates went down and we were counting on the payment going down. We were floored when they sent a letter saying interest was going up! We ask why, interest has gone down and we did everything right to earn a depreciated rate. They told us it was due to the Libor score; I ask, what is that? The said it is the London stock interest rate! I didn’t barrow from a London bank. (I admit ignorance here, I lived in England and had a English bank account and never heard this!) We asked them not to raise it, because it would be a $2000 increase in the payment, they didn’t care! My key point here…We did it all right, Ameritech caused the problem! I say that unapologetically! I did what was right, that which we had to do, and still got dumped on!! I had over $120k in medical bills, due to my illness. So instead of working it out we filled Cap 13.including the house! If Ameritech had kept there promise we would have worked it out, but not with a $200 plus increase in the mortgage! Our situation was workable until Ameritech became greedy and started charging usury fees! It angers me when people blame me and many like me, hey I did right, I did what was expected of us we would not have given up if they had given us the break we earned, and what was promised to US! The real estate market is as it is because of Mortgage Companies like Ameritech. Not the people they ripped off!

  • Yahoo! Finance User - Monday, February 11, 2008, 5:55PM ET  Report Abuse

    • Overall: 3/5

    Hey, Charles C. I don't know what part of the country you live in, but good luck finding a home/condo for $110k. You obviously aren't familiar with the "eat what you kill" lifestyle of the mortgage broker. It's exactally that! Misrepresentations and omissions are all too prevalent. So instead of bashing the less fortunate for being greedy and biting off more than they can chew; maybe you should look at yourself for being a pompus windbag, touting about your 800 FICO score. So go back to sipping tea and eating scones in your apartment.

  • Yahoo! Finance User - Monday, February 11, 2008, 5:50PM ET  Report Abuse

    • Overall: 5/5

    Both immoral mortgage lenders and buyers who were eager to capitalize on profit opportunities without having the funds to cover their future obligations, should face the consequences. Subprime lending financed the American home pipe dream. Did anybody remember the .COM bubble?

  • Lizette - Monday, February 11, 2008, 5:37PM ET  Report Abuse

    • Overall: 4/5

    What about people that have fallen behind due to other hardship factors but would like to save their homes as well and are currently on a fixed program. Is there any kind of relief or option we can take? The focus right now are only on subprime dilemas. What about if you have good equity but FICO score is too low to refinance? Need real assistance, please HELP!!!

  • Yahoo! Finance User - Monday, February 11, 2008, 5:31PM ET  Report Abuse

    • Overall: 1/5

    Give me a break no one forced these people to take intrest only or variable rate intrest loans and buy more house than they could afford. And anyone who thought it was reasonable that home values would continue to grow at 10 to 15 percent annually are just stupid. Add to that all the idiots who took a second morgage so they could buy a boat or another home to flip as an investment and I don't have any sympathy for them at all. No one is going to come pay my credit card bills if I over extend at christmas, one hard working american should not be forced to pay the housing costs of someone else. It is also funny to me that the same government that forced banks to allow many of these high risk loan practices, so that no one would be denied a home loan no matter how stupid it might be to loan said person that much money, are now coming up with the solution that my tax money should pay off your home loan. STUPID IS ALL I CAN SAY PLEASE PAY YOUR OWN BILLS, THANKS.

  • Perry - Monday, February 11, 2008, 5:31PM ET  Report Abuse

    • Overall: 5/5

    I appreciate the information that is very helpful. I myself had an arm that had gone up. I was barely able to refinance at a undesireable but liveable for now rate. Many of us hit with education bills, medical bills, and unforseen changes in job income have been hit hard with rising cost of gasoline, food and etc. It is not like the individual who commented on going out and irresponsibly buying a car with the intent of not paying for it. I pray this person is as good of a money manager as they think they are. We need better guidelines yes for getting credit, and better guidelines on restoring credit. I wish our government could set some more limitations on interest and charges that is killing this country. It is making a few rich and ruining the average American Sucker that just can't say NO! If we want to reduce our debt problems, get some percentage of income limitations on credit card debt allowable to earnings. If we don't make the money, we don't need the credit, and we don't need the bankruptcies. GOOD LUCK ALL IN MAKING IT.

  • Yahoo! Finance User - Monday, February 11, 2008, 5:30PM ET  Report Abuse

    • Overall: 2/5

    Yeah, great. I am with these guys who have gotten low ratings. We can't afford to have any work done on our home because banks are squimish to give out a loan without equity. We have lost our equity and have been told to expect our home's value to drop below what we paid for it. We have already had some work done, so already we owe more than our house is worth, all because some people in Washington were putting pressure on business people to give the "American Dream" to more people. I guess it is a bigger seller than the old chicken in every pot speech. Why do banks usually not give out so many subprime rate loans to those with low credit scores? The low score means this guy may not be able to pay it back. The higher rate means they get more money to cover those who weren't able to keep up. So subprime means they lose even more money. Lower rates for good credit is a REWARD, if you can pay they don't need to charge as much. We can freeze rates, but eventually people who can't afford a home will lose their home. All that has been done is that people who could (past tense) afford to buy a home may lose theirs too. Slum lords will be able to pick up these babies. More of us will have to go back to rent with even worse credit. Our chances to buy a home in the future gone. Slum lords who don't want to make repairs and those of us who can hold onto our homes will not be able to make repairs. We will have equality, because we will create more and more ghettos. Make no mistake those not ready will go down and they will drag who waited and saved down with them. If government doesn't stop, the middle class will get smaller. Why must I be punished? We pay taxes, we help in our community, and we may lose our well-earned home. We have opened our home to those who needed to get back on their feet. We paid our dues and it will be taken away from us. When everyone is feeling sorry for those with subprime mortgages remember it was those of us who already had homes that were being taxed and holding this country up. It is said the rich never pay more than their accountant can get them out of and the poor need out tax money- who will pay it if you turn young, middle-class families into the poor? It would be better to counsel these people, get them out of their situation, not take money away from us to forstall the ineviatable. What about rent relief for them? A nice apartment is more humane than the streets.

  • jolene - Monday, February 11, 2008, 5:19PM ET  Report Abuse

    • Overall: 3/5

    This is getting ridiculous! I have compassion for families who can no longer afford their mortgage payments, but there is a huge difference between having compassion for people and enabling them. To the woman who so graciously commented 'may god have mercy on you,' for those of us who are not jumping for joy at the opportunity to bail you out of your stipid decisions: how DARE YOU! How dare you play the we are a country and for that reason need to help eachother card. My husband and his fellow servicemen, who defend your rights to say idiotic things such as that, help you out EVERY DAY by putting their lives on the line for you. Your fellow countrymen haven't sacraficed enough for you already? Blood isn't enough, now you want their money as well, and god have mercy on those of us who aren't excited about doing so? No ma'am, may god have mercy on YOU. May he have mercy on your greed! For while 19 year old boys are dieing for you at this very moment, all you can do is WHINE about how the rest of us aren't happy to chase you around with a safety net. Oh, and so you are aware, neither myself or my husband come from wealthy or even comfortable families, we've worked hard for every cent we have, live on an Enlisted serviceman's salary, we certainly don't expect OTHERS to bail us out of our irresponsible decisions, and as badly as we wanted that brand new house we looked at four years ago, we KNEW, no matter what anyone else told us, that it would be nothing short of stupid to purchase the home. So don't whine to the rest of us who know the TRUE meaning of sacrafice and what it really is to work hard for a dollar!

  • laura - Monday, February 11, 2008, 5:17PM ET  Report Abuse

    • Overall: 2/5

    We have been waiting for the market to slow down so that we could buy a house. Now thanks to the mortage fall-out we afford a home BUT we cannot get the financing we need.

  • Yahoo! Finance User - Monday, February 11, 2008, 4:54PM ET  Report Abuse

    • Overall: 1/5

    Few, if any, people took out these mortgages without knowing what they were getting into. To force your neighbor to help pay for your luxuries is not the way of a democracy. Truly disgusting.

  • Yahoo! Finance User - Monday, February 11, 2008, 4:52PM ET  Report Abuse

    • Overall: 1/5

    When the people find that they can vote themselves money, that will herald the end of the republic. -Ben Franklin

  • T A - Monday, February 11, 2008, 4:50PM ET  Report Abuse

    • Overall: 3/5

    Although this will help a small percentage of homeowners, it's not likely to make a huge difference in the problem. What we need to look at is the bigger picture. While some people are in these situations because they were taken advantage of or because of circumstances beyond their control (ie - illness, job loss, etc) many of these homeowners simply spent more on a home than they could actually afford. We were approved for a mortgage 3 times higher than what we financed, but opted to spend less so that we would be able to keep our home should some unforseen event take place. Just because the bank will give you the money, doesn't mean you need to spend it.

  • Yahoo! Finance User - Monday, February 11, 2008, 4:47PM ET  Report Abuse

    • Overall: 4/5

    Make no mistake about it, this is not being done to help the homeowner. It is being done to help the mortgage companies. If something isn't done, then all these people lose their homes and the banks take them over. The banks don't want that, they don't want to be in the real estate business they want to be in the loan business. They do not want to own worthless real estate. I am half & half with this. Mortgage & real estate language is foreign to some people and they do not understand it. So they have to rely on the people selling the product to be honest with them. A lot of those people were not honest and the homeowner trusted them. The mortgage brokers uspecially those that sell their loans shortly after closing were not upfront with a lot of people and just like a car salesman told people what they wanted to hear and didn't disclose a lot of dangers associated with these loans. I know b/c I am one of those people. Before I signed I went back and researched my potential loan in detail and found out there was a lot my mortgage broker was not telling me. I confronted him and asked him why he didn't inform me of the dangers and only told me of the good parts of my loan. His response was that he felt that he didn't have to. So I was lucky, but there are a lot of people not so lucky. Were not talking about buying a tv here. A lot of these brokers intentionally tried to dupe people to make a buck. And the banks made billions. Now they either have to help people out or own billions in worthless real estate. Also remember a lot of these people were first time home buyers. remember when you bought your first home?? It was definately a learning experience. These people had no idea of the process and realtors, banks & mortgage brokers took advantage of them. I guess it's the American Way. I don't know why laws have not been enacted to protect potential homebuyers from crooked brokers. You have lemon laws with cars and other similar laws with other products. The real estate and mortgage lending language is not your common everyday language so I really have no problem with what the govt. is trying to do but I know it's not to help out the avg. American. It is to help out big business.

  • Yahoo! Finance User - Monday, February 11, 2008, 4:43PM ET  Report Abuse

    • Overall: 1/5

    I want you to pay for my car when I buy it as well. I'm going to lie about my income then get the most expensive car that I can get a loan for. When I stop making payments I expect the government to force you to help me pay for my car. After all, without my car I can't drive to work and earn money to pay my mortgage. And I certainly can't be seen in a Toyota, or Honda... Woo Hoo!!! What a great world we live in!

  • Bernie - Monday, February 11, 2008, 4:40PM ET  Report Abuse

    • Overall: 1/5

    Like many have said already, if you bought something that you cannot afford, it serves you right to lose it. Americans wrongly think that we are entitled to things..without having to work for it. Foolish people. Yeah, there's alot of things I'd love to have, but I'm smart enough to know that if I don't have the money, I ought not buy it. This mentality spills over into government, schools etc..."I still have checks in my checkbook and a piece of plasticin my wallet, I must have money!" Grow up people. And worse of all, are enablers like Suze Orman who think that the big eveil bank manager caused you to be in this mess. No moron, YOU did it. I am sick to death of having MY taxes go up so that YOU can get bailed out. I do a novel thing when I run out of money..I QUIT SPENDING! I hope you teach your children better than that!

  • Yahoo! Finance User - Monday, February 11, 2008, 4:34PM ET  Report Abuse

    • Overall: 4/5

    Everyone needs to show some COMPASSION right now. There are so many families being thrown out of their homes because of this mortgage crisis. There are so many hard working individuals who just wanted what every American wants and that is to own a home. Their loan officer sold them on whatever loan program would make their dream of owning a home a reality and we can't blame these individual for taking a chance. They honestly believed that they were going to be able to refinance into a better mortgage because house prices kept soaring. I feel sorry for those people who bought at the peak of the market. They are now stuck with an overpriced home, a mortgage they can no longer afford, and not chance of refinancing. The investors who over bought are now foreclosing on their homes and the builders who over built are now giving away their homes and it is driving home values down. Now these people are upside down on their homes and their mortgage is about to reset. The government needs to step up to the plate and help these citizens out and not worry about their friends in the lending industry. These lenders need to work with these people and figure out a short term solution until our housing market rebounds. I don't feel sorry for the people who used their homes as ATM's they should not be given any breaks, but I do feel sorry for the hard working people who just wanted to own a home! Show so COMPASSION and put yourself in their shoes before you bad mouth these people for making a poor decision....they just wanted to own a home and they finally had the opportunity to do so.

  • Bill - Monday, February 11, 2008, 4:12PM ET  Report Abuse

    • Overall: 1/5

    "people that sell their house for less than it's worth" What a poor comment and misleading statement. Less than 30% of people that settle for less than they owe will qualify under this relief. Once again Suzie misses the mark and gives people advice that is often wrong.

  • CindyM - Monday, February 11, 2008, 4:06PM ET  Report Abuse

    • Overall: 4/5

    Being a disabled person who became homeless as result of the multiple denials for SSDI, I just wonder how many others lost their homes due to the irresponsibility and negligence of the Social Security Administration. I was a responsible tenant for ten years, paid my bills on time but the mark on my credit due to eviction is making it challenging to purchase a home despite of my $1346.00 monthly income. It took SSA three years to begin paying its debt to me but SSA is still working on the back payment (since August 07). Where is the government's accountability in this mess?

  • AWOL - Monday, February 11, 2008, 4:06PM ET  Report Abuse

    • Overall: 1/5

    The story contains decent info but I just can't stand her. Wish they'd get somone else to do these columns.

  • Yahoo! Finance User - Monday, February 11, 2008, 4:06PM ET  Report Abuse

    • Overall: 4/5

    I had a great job and paid all my bills on time. But when I lost my job I had to move my family halfway across the country away from all our family and friends to ensure our survival. I still own my original house, thank god I have a low 30year fixed rate, and now rent it out. But moving 1300 miles away from everything you have ever known and worked your whole life for sucks!!! It's easy to point the finger and say people are stupid, but they got to this point because the government let them. In the long run the government and the banks are the ones that will benefit from this help.

  • Yahoo! Finance User - Monday, February 11, 2008, 4:05PM ET  Report Abuse

    • Overall: 2/5

    I don't know how I feel about this either. I have seen many of my family and friends refinancing at almost 100% LTV or purchasing a home with no money done (?), applying for an ARM, etc. All of which I have strongly advised against. To OZZI, let me get this straight you applied for a loan that was all in your name, you didn't notice that your husband hadn't signed any of the paper work? You took money out of the equity on your house through the loan, split with your husband, purchased another home that is paid for and the previous home was foreclosed. Ummmm..... why not PAY ON THE HOUSE YOU ALREADY OWN. Obviously you have some money because you bought another home, which I am assuming is also in your name, how did you manage that as you stated you don't have a job? If you paid cash for the second home you should be able to pay on the obligation you already had! Am I the only one smelling a rat?

  • titob - Monday, February 11, 2008, 4:05PM ET  Report Abuse

    • Overall: 3/5

    We get it. People who bought into the low finance, Adustable 2 year rate, who had big plans to refinance in a year when their credit was better, and who didn't put 20 %down like all of you good little boys and girls are morons and uneducated scumbags single handedly ruining this great economy. It's funny, the concern in most of the posts is not "How can we get the economy back up?" It's "I was right and they were wrong! I told you! Seeeee! That's why I did it the right way!" That doesn't solve a problem, that's called running in circles. The goverment is not doing this to help out the consumer or to be nice, but to help the economy, that is it. It's not a reward people, it's an attempt at a relief. We may be dumbasses, but their are a LOT of us dumbasses and this is a big problem . By the way, I've got news for people who think since we've purchased our overpriced condos lined with Gold and houses with copper ceilings, cedar roofs, and Bamboo floors, that payments have been smooth sailing with the interest rates up until recent events. I had a crappy interest rate when I purchased the house and with the refinance that took effect last August I really know what a crappy interest rate is. In fact, it took my whole 10% raise.. The house is still the same.. Doesn't look, feel, or do anything different. I'm just paying a hell of a lot more for it, because the mortgage company can raise the interest rate, because I said they could. I'm not looking for a handout, I'm not expecting a damn thing to be honest with you. It was my mistake, but it would be nice if these sub prime lenders are not able to raise the interest rates over a certain percent of the national average. That is what is screwing people. Well, why don't sell and go back to aparment life? I would if I could, but unfortunately I just blew my only $30,000 to cover the depreciation on my house on more crap I can't afford.

  • Tracy H - Monday, February 11, 2008, 4:03PM ET  Report Abuse

    • Overall: 5/5

    Compassion?? Bad things happen to good people that try to buck the system everyday. Unfortunately,this is what happens when people cheat the system. I don't feel sorry for anyone that got themselves into these loans--I don't blame anyone other than YOU-- Come on you people knew that it was too expensive of a home for your income--but you did it anyway. Now that it is time to pay the piper you're all crying and want the rest of us who lived within our means or who have come across difficult times even in our fixed mortgages and we still make our payments on time etc... to give you sympathy. Not happening. Just a hunch but probably most people in this situation are the same people who cheat the system every day, live off welfare, unemployment, avoid paying taxes etc..etc. etc... So if you're looking at others for more free hand outs and sympathy--You're not getting it from this hardworking American girl.

  • Jennifer - Monday, February 11, 2008, 4:02PM ET  Report Abuse

    • Overall: 1/5

    I have a couple of points. For all of the people who claim that they did not understand what they were getting into or signing, did you not read or question anything you were putting your name on? I recently bought my first home last spring and I did not sign anything until I read it (they give it to you early to read over) and if I did not understand something I asked questions. That is what I was paying the lawyer for. I read numerous books before purchasing so I knew what I was getting into. I just don't understand how someone can believe that they are signing a mortgage that is 30 year fixed and all of a sudden the day they were signing it, it turned into an ARM and you didn't catch that anywhere in the paperwork. Is that not part of the good faith estimate (I could be wrong here, but I thought it was)? Nor do I understand how even when one is getting a divorce (I've been through one myself) you could not pay attention to property that is in your name (whether it was supposed to be or not). My parents have been divorced for 4 years now and my father's name is not on the mortgage however he still makes sure my mother's taxes are done properly and everything regarding the house is squared away. I also cannot grasp how if your name was not supposed to be on any mortgage or legal documents why you would sign ANYTHING. If the mortgage was not in your name, you did not even have to be there, let alone, you most certainly would not be signing anything. I'm absolutely not saying that everyone who is finding themself in trouble now is to blame, there were some questionable things going on as far as lending was concerned. But some people were absolute idiots and they are making lame excuses for themselves right now in an effort to get people to feel sorry for them. Further, I don't care if this is a bail out or not, all I know is that I do not want the value of my property to drop because all of the other homes on my street are in foreclosure (thankfully, I do not yet have this problem, but you never know what could happen). So if this helps some people, in the long run it helps everyone. If no one helps these people, and these houses are all left to sit, your house will be worth squat my friend. So in the end, you will lose.

  • Yahoo! Finance User - Monday, February 11, 2008, 4:00PM ET  Report Abuse

    • Overall: 1/5

    This bailout is for the banks and institutional invest firms who bet big with your money all the while you were screamin at them to make money with your cash in their pockets. To ignore that fact ....well your just dumb as a rock. What goes around comes around.Your time is comin on this one and don't be surprised at the cold reaction you get from those of us who got caught. Bottom line, greed and stupidity got the best of all of us. a little more compassion for those who s... in their messkit would go along way. The guys you really want to string up are the bankers playing hot potatoe selling the mortgages.

  • Zoulou3 - Monday, February 11, 2008, 3:58PM ET  Report Abuse

    • Overall: 1/5

    First of all, the programs to help strapped families especially in the middle and poor class are a joke it protects the mortgage company's and Banks and i think the Big Banks are pushing this. Also, how can a family who has a hard time paying for a mortgage not qualify- they say you can't have any late payments otherwise you are out - what help is that!! Also, some of the States and Fed are so stupid, if the subprime company's were the problem why didn't they put the screws to them but no they had to end programs for the conforming people (better credit score people) which has caused more problems, especially self-employed people, now they have to show tax-returns that show more income to quality for a loan and if they show more income then they get taxed more-so those people get hit twice. I live in a State that the legislature is so stupid that they won't allow any stated programs and want income proof from self-employed, then they triple a mortgage brokers license fees; most one and two person shops working in local towns are not the bad guys but this State will cause these small broker shops to go broke, then you will have to deal with the big banks and mortgage companies and get screwed again. Yes, some people will try to get a house no matter what-they will go from broker to Bank to Broker looking for someone to give them a loan, those are the people that cause problems too. I don't see anyone blaming the oil companies either, how much more $$ have we had to fork out because of gas prices and all that it has caused to go up. that money was used to pay a families mortgage now it goes for gas and etc. caused by high oil prices. But of course congress can give themselves a raise while many of us are working 2 or 3 jobs to put food on the table. Congress people get involved in the drug issue in sports for what a big name and money while behind their backs hundreds of families are losing homes and losing the freedom to live without stresses, life always has struggles,but some of these things could have been dealt with much sooner and handled better. Now we suffer again,us poor and middle class slaves.

  • Yahoo! Finance User - Monday, February 11, 2008, 3:58PM ET  Report Abuse

    • Overall: 5/5

    Is it fraud? could very well be. See msfraud.org MS is short for mortgage servicing which is most of the mistreatment of the consumer occurs.

  • Yahoo! Finance User - Monday, February 11, 2008, 3:58PM ET  Report Abuse

    • Overall: 4/5

    The article was very well written...the content. PALEASE!! You can't have been late in the last 12 months on a mortgage payment to qualify??? DUH! Get real people! Who do you think would need the break??? PEOPLE WHO CAN'T MAKE THEIR RIDICULOUSLY HIGH AR MORTGAGE PAYMENT (aka people who are behind). If you could make your mortgage payment every month on time, you probably don't NEED help. The guidelines for this break are ridiculous and the fact that this is designed more to help lenders makes me want to vomit. Preying on weakness and the American Dream has put these companies in the position they're in.

  • El Viejo - Monday, February 11, 2008, 3:55PM ET  Report Abuse

    • Overall: 1/5

    why is the feds bailing out stupid people who over extended themselves ???? .... using tax money - or worse, Chinese money - to bail out morons seems just no right ?

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