Mortgage Bailout- not good enough?
Currently, I understand, that Obama is working on something for homeowners who find themselves behind on mortgage payments. However, it does nothing for those who are managing. My son is upside down in his house and he had an ARM. So there is really no cap on how high his payment can go and it has increased $ 800 over the past 12 months.
He doesn’t qualify for help. You must be in default.
He explained that his house payment now represents 65% of his monthly income and was surprised to learn there is no provision for the income to debt ratio- which is a formula they use to qualify you for a home. He took a second job to make his payments but is working 80 hours a week. I told him to go into default. What do you all think?
Bottom line, isn’t a sad state of affairs where the government is practically making people and business go bankcrupt? I understand that it is more financially advantage currently for a mortgage company to let you default because of the percentage of bailout money they receive when they lose you. It would seem that the only people getting help are the very poor or the very rich.
Ryan M: I totally feel you. But you misunderstood. My point was that if the government is going to bailout those who are losing their homes, then they should be fair and take care of everyone. Personally, I don’t think anyone should get a hand out. Period.