Mortgage Mess "Hitting Home Early"

The Early Show's Ray Martin, Other Experts Try To Help Desperate Homeowners

(CBS)  With hard times getting harder and more and more people facing the prospect of losing their homes, The Early Show is taking action.

In a special series, "Hitting Home Early," our resident financial expert, Ray Martin, and other expert, try to help people facing foreclosure.

Martin profiles and advises homeowners across the country.

He and the others also look at different aspects of the every-changing real estate market.

To see videos of all parts of the series, click here.

April 26, 2008

WITH TIMES TOUGH, PEOPLE PILING ON DEBT

They're turning more and more to credit cards and home equity loans to get by, but Ray Martin pointed to the pitfalls of such strategies. To read the full story, click here.

April 7, 2008

EXPLODING MORTGAGES

In California, when home prices soared, many homeowners had been able to live very nicely on their equity.

But falling prices have caused an epidemic of foreclosures and threatened foreclosures, leaving over-extended homeowners in dire straits.

CBS News correspondent John Blackstone reported about one such couple in one of the hardest-hit areas, Livermore, Calif. The payment on their home was about to go through the roof, from $2,800 a month to $8,000. Even though their lender was willing to work with them, and reduce their increased payment to $6,000 -- but that's apparently still not low enough.

After Blackstone's report, Martin offered his take on their predicament, and that of others in their shoes. It wasn't pretty.

To see the segment, click here.

April 5, 2007

Q-AND-A WITH RAY

"Hitting Home Early" is drawing a huge response from viewers. They're flooding The Early Show's in-box with questions for Ray Martin.

He answered some Saturday -- on foreclosure procedures, where to turn for help if you're in over your head, and whether this is a good time to buy.

To see the questions and Martin's detailed responses, click here.

March 29, 2007

THE FORECLOSURE HOME TOUR

Real estate agents usually avoid foreclosed homes like the plague, but not Tess Langevin of Dallas, Texas. Instead of running away, she drives directly to them, taking potential househunters on a foreclosure home tour.

At her office, Langevin and her colleagues comb through the lists of Dallas' growing inventory of foreclosed homes, selecting the best of the bunch.

Then potential homeowners board Langevin's office on wheels - a converted church bus decked out with her picture.

In three hours, they cover 8 to 10 homes in different price ranges. Interior tours are quick, but enough to size up the property.

At one stop, a home where someone's dream went bust. "It's really tragic," said David Jones, "but life goes on."

You don't have to look far to find a foreclosed home in Texas. In January, more than 14,600 went on the foreclosure list, giving the Lone Star State the dubious distinction of being number three in the nation in foreclosures, right behind California and Florida.

After six months of declining sales, there's been a slight turnaround: sales of existing homes, including foreclosures, averaged a 3 percent increase nationally last month. The main lure? Falling prices. Last month, median home prices dropped 8.2 percent, motivating buyers like Marty Ballard and Becky Woodland to dive in. "It's like the homes are all on sale," Ballard told CBS News correspondent Randall Pinkston.

Still, experts say there are many reasons buyers should exercise caution with foreclosed properties:

"There's additional paperwork involved, there's also a longer time period and the purchaser needs to be a little more flexible," said Brian Block.

And realtors have to be flexible, too - they make a lower commission. "I don't like it but I do have to make a living," Langevin said, "and that's what people are looking for."

For now, Langevin has found a way to be in the driver's seat - in one month, four people have snapped up foreclosed homes.

To watch this segment, click here.

March 25, 2008

BEGINNING OF BEGINNING OF MARKET BOTTOM?

Three real estate brokers in different parts of the country interviewed by Harry Smith indicated things may finally, finally be starting to stabilize. One said, "Buyers are waking up and saying, 'Hey, there are bargains out there!'" But the real estate editor of the Associated Press cautioned that experts point to the second half of the year for the potential beginning of a turnaround, or at least, an end to the market's freefall. To see that segment, click here.

---

WHAT DO YOU TELL THE KIDS ABOUT YOUR MONEY WOES?

Child psychologist Lisa Boesky discussed it with Maggie Rodriguez. To watch the discussion, click here.

March 22, 2008

Ever since we started our Hitting Home Early series, Ray has received a flood of e-mails from viewers, including comments, pleas for help, and a whole lot of questions. Ray will answer three of these. To watch the segment, click here.

March 21, 2008

WHEN YOUR COMPANY GOES BELLY-UP, OR CLOSE TO IT

Many workers have to face the sudden, harsh reality of their company going out of business or suffering another hard fate. And those companies can include big names -- such as Bear Stearns and Enron. CBS News correspondent Randall Pinkston looked at what happens to the employees -- the bitterness and anger they tend to feel as they face their uncertain future. And Early Show co-anchor Maggie Rodriguez spoke with someone who lived through a corporate collapse -- Sherron Watkins, an Enron whistleblower. She worked at troubled Arthur Andersen from 1981-1990, and at Enron from 1993-2002. To watch the segment, click here.

March 20, 2008

WILL FED MOVES HELP? WHAT CAN HOMEOWNERS DO?

The Federal Reserve Board has taken drastic steps lately to try to shore up the economy, but Martin doesn't think they'll work. He points to Lori Nicholson's situation (see stories below from March 17 and before) as a prime example of why. And he offers advice to homeowners in similar shape. The key, he says, is to ACT NOW, contact your bank, and let it know about the dire straits you're in. To see the segment, click here.

March 18, 2008

SURVIVING ROUGH ECONOMIC RIDE

The continuing turmoil on Wall Street has given Joe Main Street the jitters. Martin put it all in perspective, explained how it's affecting our wallets, and offered advice on steering through these uncertain financial times, on The Early Show. To see the segment, click here.

March 17, 2008

LORI NICHOLSON (Part Three)

Nicholson has asked her bank to restructure her loan, and is awaiting a response in the mail.

Nicholson points out that she's not the only homeowner in trouble in her neighborhood. Several others are, and a house similar to hers is on the market for $215,000. Nicolson's home was appraised at more than $400,000 when she took out her loan.

The $215,000 price tag "tells me we've got a problem," Nicholson says. "It tells me this government has a problem, because this isn't the only town that's suffering, and this is a pretty small town."

On Friday, Martin suggested Nicholson seek a "short sale" of her home, saying, "If Lori could hang in there and pay something on the mortgage while they try to sell the property ... she could negotiate with them not to put a derogatory on her credit report."

On Monday, Martin didn't beat around the bush, saying Nicolson's situation "is going to end badly. She will lose this home." The idea now, he explains, is to have it happen in as painless a way for her and to her credit score as possible.

Foreclosure, he says, it "the ultimate negative" on a credit report. There are alternatives, he stresses, including the "short sale" possibility. It results in "your turning over your home instead of going to foreclosure with the lender."

You must alert your bank that you're having financial difficulties, Martin says, and work with it for an orderly transition of your home to the lender.

As Nicholson awaits the home's fate, she should put it up for sale, Martin says, because a homeowner has to formally, legally prove to a bank that the house it worth less than you owe. A home has to be listed for 90 days before the deed can be transferred to a bank in lieu of foreclosure.

Nicholson recently bought a car, because she drives to and from work and her old one is in disrepair. Her thinking was to get one while her credit would still enable her to, a strategy Martin says he understands. Still, he stresses, such a route isn't for everyone, because it entails adding yet more debt to an already-jeopardized personal balance sheet.

March 15, 2008

LORI NICHOLSON (Part Two)

Some American now own homes worth less than their mortgages. Sometimes, there's nothing to do but walk away, and that's what Lori Nicholson thinks she has to consider.

The foreclosure crisis is hitting her hard. She told Early Show correspondent Hattie Kaufmann the bank is closing in: "Today's mail, I got the first notice, the collection notice for the month-and-a-half I have been behind on the payment," she said.

She owes $2,841.

"I do not have that money," she said. And what is she going to do? "I don't know. I am just going to wait for the bank to send me another letter."

Lori is on the road to eviction, after missing two mortgage payments. She has lived for 23 years in the Oakley, Calif. home were she raised her children.

After her divorce six years ago, she qualified for a loan that made it possible for her to hold onto the home, even remodel it. But the loan for $339,000 had hidden pitfalls. It was an interest-only mortgage and, instead of going down with each payment, the balance went up, and up, and up.

Today, that loan has made it impossible to stay, Nicholson says. So, she's packing up and looking for a room somewhere:

"That's my goal, to rent a room. I don't know what to do. I feel like I am treading backwards. My hands are tied. The bank won, I guess."

Friday, March 14, 2008

LORI NICHOLSON (Part One)

Nicholson has owned her Oakley, Calif. home for 23 years, but can't afford the mortgage payments anymore. To make matters worse, the value of her home has fallen dramatically, and she now owes the bank more than the home is worth.

So, selling the home wouldn't help her situation -- she would still owe the bank money, even after the sale.

Yet, she can't just ride out the downturn and wait for the home value to spike, because she can't make the monthly payments. In short, she's stuck between a rock and a hard place.

She used her savings to continue paying the bank regularly, but those funds are exhausted. She didn't make a payment in February, and is about to miss her March payment, too. If she goes on to miss her April payment as well, the bank would be able to foreclose on the home.

"When I refinanced the house about six years ago, when I got divorced, it started then," Nicholson told CBS News, "I could only qualify for a certain loan. ... I didn't realize the balance kept going up and up and up and up. Every time I'd make a payment, it's interest-only, so the balance goes up.

" ... I don't want to leave this house. I told the guy at the bank I'm not willing to walk away from a house I've been in so long. I see my neighbors leaving in the middle of the night. ... I told the banker that I'm not willing to do that. I'm willing to stay here and be worked with and (have) somebody help me, but they basically wouldn't talk to me.

" ... If they would work with me and I could accomplish the payment, I would do it. I would do it in a heartbeat.

" ...Twenty-three years this year, my son -- I actually brought him home from the hospital in this house. My daughter is just a year older, she's 24. It's tough, it's very tough to move, it's very tough to leave."

Nicholson spoke to The Early Show Friday from her home, and Martin was on from West Newton, Mass.

To see her making additional comments, and get Martin's take on her situation, click here.

Martin says a mortgage adviser pointed Nicholson toward an "unsuitable" loan, an interest-only option adjustable rate mortgage, "the most toxic of all sub-prime mortgage products." The minimum payment was $1,000, but the monthly interest charges, not even including any principal paydown, are $2,400 a month. The $1,400 in interest she wasn't paying were added back onto the principal and, as a result, the principal has RISEN from $334,000 to $355,421, some $100,000 more than the house is probably worth.

Nicholson told co-anchor Maggie Rodriguez she cried when she realized what she'd gotten herself into.

Nicholson says she and Martin called her bank together Thursday, and she was offered a loan that was called the best the bank could do, with a monthly payment of $2,800. "That's just not an option for me," she says. "I can't afford that."

Now, she says, she's "pretty sad, again." She was on the verge of crying on the air, but was trying to be strong, because she knows many others are going through what she is.

Martin said he'd call the bank with Nicholson again, but doesn't expect to get very far. He expects to be told the only options are foreclosure or a "short sale," which might not harm Nicholson's credit rating as much as a foreclosure.

Both said they'd report back to The Early Show.

[teealigo66]

I can NOT believe the so called "help" you gave that women!
Why in the world is that SOB of a morgage broker not in jail for fraud!?!? You are not helping her, ...you are helping that *** collect more ''blood money''! You and our government should be ASHAMED of yourselves for this kind thing even happening in this country! Where are your morals???? The ''mob'' goes to jail for these kind of ''antics''!
You wonder why people walk into places and shoot everything that moves! NOW YOU KNOW!!! You can only push people so far before they break!

[sneill1]

I feel sorry for this woman but it sounds like she wanted to keep the house and get money out of it to settle with her husband but didn''t have the financial means to do that without selling the house. After 23 years she would have had only 7 years left on the mortgage(mostly principal at this point) and I am willing to bet that her payments were lower and fixed. She is not a first time mortgage owner who did not know to read the contract and question the terms. Anyone can figure that a loan of $334000 paying $1079 per month back is about 25-26 years and that is just principal. When do the banks collect their interest - up front on homes, cars, most everything. It is a crappy situation when families split up but it sounds to me that she walked into the situation knowing that she was paying interest only and that an A.R.M. means "adjustable" - usually UP. I am getting older and am paying off my bills and saving money for retirement but I can''t seem to get ahead on interest rates because of the irresponsible spending of a small percentage of the country and the media screaming we have to reward bad behavior or poor judgment.

[justacommen1]

When she refinanced 6 years ago she could %u201Conly qualify for a certain loan%u201D. If she didn%u2019t take that option her other choice was simple. Sell the house and move. But she didn%u2019t. Now she has to.

She bought her house 23 years ago and made payments for 17 years before she refinanced 6 years ago. She should have gotten a clue when her payment went down as much as it likely did with the refinance. How ignorant do you have to be to think $1000 payment make sense on a $334,000 loan? Or, that you can borrow that much more then the original mortgage and think your payment should decrease?

She had a house that appreciated for 17 years while she paid down the first mortgage creating a substantial amount of equity. Then, SHE chose to tap the equity from the appreciation and payments. She likely borrowed 100%+ of the value of the home to %u201CRemodel%u201D (that likely increased the value even more), and other items. It continued to appreciate for the next 6 years and she%u2019s STILL upside down on the mortgage. Even with the recent drop in housing prices, that math doesn%u2019t work.

Mr. Martin, as a fellow %u201CFinancial Expert%u201D, I am ashamed that you didn%u2019t hold her to task in the least. Yes, they shouldn%u2019t have solder her the loan, they should have told her to move. She should have sold the house the year she got divorced, not remodeling and borrowing the maximum amount she possibly could.

[tntwess]

I have a deed. I have a mortgage. I cannot live on the property. I cannot sell the property. Don''t be too quick to judge her situation. Sometimes pressure comes from places you can''t imagine. It wasn''t her job to be an expert.

[cfhunter61]

The tragedy here is The woman clearly borrowed more money then she could afford, if she could not afford to borrow over 300,000 at a 15 or 30 yr fixed, she should not have borrowed that much money. She probably had to buy the husband out at the peak of the market, and would have done better to sell and buy something she could afford. Lenders have perpetuated the myth that your house can function as a revolving line of credit rather than being an asset you should seek to own as quickly as possible to weather bad markets and job losses. There''s no such thing as free money. Lori should have asked the simple question "when will this loan be paid off" the answer would have been "never". Recently, there has been much said in the media about teaching your children about credit, about how to manage your credit scores, what REALLY needs to be communicated is the value of living below your means and not above them so there is some kind of financial future.

[mududdle3]

I am furious that people like this woman have tanked our economy out of their greed and stupidity. I have a mortgage. When I applied for my mortgage and then again at closing, I was given a stack of disclosures that I had to read and sign that explained the terms of my mortgage. I cannot believe that she was not given paperwork that explained that if she chose to pay the lowest of her 4 payment options that she would not be covering even her interest due. She was flat out too selfish to make the hard choices that she needed to make when she refinanced her house. She knew that she didn''t qualify for a standard loan by her own admission, and yet she willingly put herself into the situation she is in now and helped to create the "mortgage meltdown" because she didn''t want to leave a house that she knew she couldn''t afford. There is no such thing as "personal responsibility" in our country anymore...it''s always someone else''s fault when we don''t get what we want now. I am disgusted that CBS is doing such a stilted, one-sided view of a crisis that was brought on by nothing short of greed and a feeling of entitlement by the borrowers, not the lenders. I don''t believe there are any lenders anywhere that have forced borrowers to take out toxic loans...those borrowers have made those bad choices for themselves, and now the rest of us are left to clean up their messes.

[studentgirl]

i am really amazed at the ignorance of the last state ment,(mududdle3)about their irritation with HER! let me enlighten you. people are told by greedy and soulless real estate professionals that these types of loans are the answer to all their problems and not to worry about the terms because they can re-fi before the terms affect their loan. they also tell borrowers that making the minimum payment on time every month will improve their credit rating, and allow them to re-fi for a more favorable rate in the future. ALL OF THOSE STATEMENTS ARE HALF TRUTHS!!! THE INTEREST ONLY LOAN IS LOAN SHARKING AND SHOULD BE OUTLAWED!!! every month that you don''t pay the FULL interest payment the remainder of the interest you owed is applied to the principle and you then pay interest on the unpaid interest...that is loan sharking.. the banks won''t break your legs but they will take everything you own and leave you homeless on the streets. next half truth, the only way making your payment helps your credit is if you pay the full amount of the interest payment. otherwise the interest being added to your principle every month causes your asset/debt ratio to decrease which in turn affects your creditworthiness.I think if blame must be placed it deserves to be placed on all, BROKER,BORROWER,SALESPERSONS,AND LENDERS!!!!!! ALL SHARE THE BLAME. I am not suggesting that all real estate professionals are like this, i am suggesting everyone pick carefully.

[fhaguy]

She borrowered more than she could afford to borrow at terms that should not have been allowed. Lending money obviously does not work well when the borrower is deceived, lied to, coerced, persuaded or knowingly chooses a loan that allows negative amortization at maximum loan to value. Responsible lending dictates that the borrower first demonstrate a willingness and then an ability to repay the loan they are applying for.

In Lori''s case, an analogy is that people in hell want ice water. She should not have been offered a loan nor an amount that she could never repay. Had she dealt with an ethical advisor she would have realized she had to sell the house. The guy that wrote this loan deserves to go to jail long before Lori does. There are a lot of people that deserve to go to jail before her.

That being said, a cheap calculator would show you that she cannot afford to stay in this home under any terms unless there was a significant reduction on her existing principle amount. That would be a bailout and she certainly doesn''t deserve that either.

[liselle3]

A good portion of this mortgage mess is due to the bad judgement and fiscal responsibility of individuals. Using the equity of your home to fund expensive remodels, payoff of car loans and credit cards is only asking for trouble. You could have seen the writing on the walls many years ago when this type of financing was rampant. The trouble with Americans is they want everything right NOW... big 2000+ sq ft homes, new cars, boats and loads of nice furniture. What happened to living within your means?

[liselle3]

One last comment on the previous comment, the banks are not responsible for poor judgement of the individuals.

[tommy_tunes]

In my opinion, and based on my daughters situation in purchasing a new home, I blame some of the large corporate home builders. My daughters home builder, one of the largest in the nation, actually told my daughter that she could afford the payments on her old home as well as the new one. They only care about making a sale and not the consequences or what happens to these young kids. The entire home purchasing process as far as warranties, etc. all need to be investigated. Home builders are inferior homes knowing that most people don''t understand the warranty information provided and or the process as to how to handle it. Most home owners simply give up trying to get things fixed in their homes because the home builders take so long to fix things. Most young people can''t afford to take off from work to get the things fixed. We need legislation that allows homeowners to with hold 10 or 20% of the cost until all repairs are satisfactorily repaired, as well as a 30 day timeframe for having repairs made.

[achambers7]

I can understand Lori situation. I am also in this same situiaton with WAMU. My advice. don''t move out in the middle of the night. This economy has really gotten us in a mess. the problem is everything has gone up except our salaries. "Project Lifeline" is a new Bush proposal that is suppose to help us. Talk to the Loss Mitigation department and they will work with you. You are not alone. Hopefully, WAMU will negotiate a new loan for you so you can keep your home. We are still trading phone calls, but I have been talking wiht some helpful people that work at WAMU and hopefully my end result will be favorable. Why would they want our homes when there''s no one out there to buy them. Good luck.

[achambers7]

I can''t believe these people comments. Who are these people with all the answers. Obviously they are independently wealthy. It''s easy to have the answer when you have money. People in glass houses shouldn''t throw stones. They are the people who stepped on someone like Lori or myself to get where they are today. Give me a break.

[pattisaid]

I have no sympathy for these people that are losing their homes. I saw first hand the greed of the borrowers as the value of their homes increased. There were some people who would purchase a car in the middle of a refinance. Then be upset when their fico dropped in the middle of the transaction and no longer qualified for the better interest rate on a cash out loan and still took the loan. Then there were the letters of explanation for why they needed a Tiffany''s account on top of all of the other credit checks. They were lucky they did sell the home. But the materialism of these people amazes me because they have all of the toys. Or the guy living in an exclusive neighborhood that wanted to get the rest of the equity out of his home (his words). This man and his wife made 10,000 a month! They were in debt and he still wanted to do more remodeling to get more value as the value was going down in their area. So many people refinanced to do the right thing at first which was to pay bills. But then the home values went right through the roof and so did the feelings of grandeur of the borrowers. Everyone wants what everyone else has. Once the bills were paid then the whole cycle starts over again. We NEED a new car, just use the charge....

She could look at having roomates or trading the home and what the financial expert said. She is only almost two months behind. But of course we all see she needed a new car. Whatever.

[pattisaid]

Yeah we should blame the "large corporations" AND the unscrupulous lender or brokers. It''s ALL their fault these people signed these horrible loans. Actually what makes me sad is that there are honest brokers out there who didn''t get loans due to the fact that that Lending So and So could also offer airline tickets and other free stuff and a song and dance along with this great rate and a special fluffy loan. OooooH so fluffy. Actually all these people who got screwed got what they wanted when they got their loan which is the money they wanted and the bills paid and a trip and a gift card and flight tickets. If they did not get a loan from one place they went to where they could get the loan. Still no sympathy.

[janes37]

I am so tired of the blame being placed on the banks, the realtors, the corporations. They are businesses-if a car dealership tells you that yes, you can afford three new cars do you buy them? Or does that seem ludicrous. Why do Americans no longer rely on hard work and sensible economic decisions, and instead rely on government bailouts and litigations. If you can''t afford it then don''t buy it. Period. And never ever sign a piece of paper at the bank without completely understanding it. It''s not rocket science people, it''s common sense.

[shahnmarcue]

boo hoo. What do I get for not falling for this kind of financing. I get to keep a home I can afford.

[skaternum]

My favorite comment: "The $215,000 price tag ''tells me we''ve got a problem,'' Nicholson says. ''It tells me this government has a problem, because this isn''t the only town that''s suffering, and this is a pretty small town.'' "

Um, no. I was feeling somewhat sympathetic until I heard this on the show this morning. Why is it the *government''s* problem? You borrowed too much money that you cannot repay. You helped create this situation. YOU believed the word of a salesman (selling a mortgage) instead of trying to find out the truth about the deal you signed. Turns out, it was a deal with the devil.

I also love how she bought a new car! What the heck was she thinking??

[toddspfld1]

Lenders do not want to foreclose on homeowners. The financial loss to the lenders from foreclosure can be on average $30,000 to $60,000. What can be done for homeowners in crises? First and foremost homeowners must decide if they can afford the home. If the owner cannot afford their payment they should sell their home. If the owner has the ability to make payments they need to call their lenders directly. When they call they will nearly always get the collection department. When the call they need to ask to be transferred to the company%u2019s Los Mitigation Department, the Home Retention Department, or the Work Out Department. Those departments will ask for personal and financial information. What are the choices available to the owner? The first unfortunately is foreclosure. The next option is to sell the property. Even if the owner owes more money than can be made by selling many lenders will accept lower payoffs. The third option is a repayment plan. Forth is a Reinstatement pan. Fifth is Forbearance. Sixth is a Loan Modification Plan. Seventh is a Deed in Lieu of Foreclosure. The Eighth and newest option is a reverse mortgage. Bankruptcy is one of the worst ideas. Even if a homeowner is foreclosed that is not the end. Many lenders will grant %u201CCash for Keys%u201D.

[tommy_tunes]

Some comments are true about not having any sympathy but you are not talking a few people, you are talking tens of thousands. Not all wanted the moon and the stars, some only wanted a place to live and they were told it was in their grasp. Dangle the Apple and someone will bite. I am basically disgusted with the methods used to lure these young families into these situations.

[tommy_tunes]

I jsut spoke to 3 or 4 different law firms and I specifically asked what is all the discussions about obtaining federal help with getting these adjustable rate mortgages recalcualted and they all said that is a bunch of hog wash. The feds have done nothing to date but talk about coming up with a solution. No lawyer, when asked, said he could request that the ARM be readjusted. President Bush will not allow it or is unable to do it based on whatever.
For those of you who haven''t had this or any similar situation occur to them then God bless you, but for those whose entire families are in disarray we simply wnat help with answers to questions. Most are not very knowledgeable about these situations and just want to know what recourse or plan of action they need to take to forego ruining their lives for many years to come. Most were not greedy looking or quick cash but only wanted a good life in a nice home, in a good community, with good schools.

[tommy_tunes]

No one is placing blame on all banks and or lending institutions but there are some shady ones out there particularly when they are associated with the builder. And again, I am sure not all of these types are shady.
The bottom line is we are only asking for help. Everyone makes mistakes and you hope they never are as big as this type.

[tommy_tunes]

When a builder builds homes in a development they are held to the least stringent building codes. When you or I put an addition on a home we are held to more stringent codes. Why is this. Those picking up for big corporations don''t see the big picture. The rich get richer and who pays for it the small person.
Now that the home sales market dried up, the builders are begging for assistance from the Federal Governemt. Don''t think for a minute the FEDS are doing this for the little guy. Any help for the little guy I am all for it as long as it is not abused.
Just look at the fiasco with the NY Governor. If the police, or Feds really wanted to take a bite out of prostitution they would not only be going after the $20 prostitutes and the people who solicit them, but the big fish that solicit the expensive call girls. I wonder if it is only because they may find too many politicians and other big wigs who because they have money, aren''t on the same playing field.
Why do you think the Wall Street personnel cheered when he got caught? Because he played with their jobs and lively hood.
I know I am off the subject but not everyone who is losing a home is perhaps as knowledgeable as some of these emailers who have no sympathy.

[pattisaid]

I still don''t feel bad. I saw too many credit reports. So much debt. How many times did they think they could do this? I only feel bad for that woman who would not go with me because she said the nice man who was helping her could get her a 1% loan. She was disabled and could not see too well and her fingers were bad... and was on a fixed income...But he was soooo nice. She did not qualify for that loan but I''m sure he helped her. These two are perfect for each other. They will go where they hear what they want to hear. Still no sympathy.

[nj2008-2009]

What I don''t understand is what happened to if it sounds too good to be true it is?

About 10 years ago I went through a divorce. While supporting my two young children and with credit card debt, a financial advisor told me that I could afford to buy a house. I looked at what he was telling me to do and it didn''t make sense to me. So I waited until I could try and save the money for the down payment. I worked harder and earned promotions at work. With the increased income, I lived less than my means so I could get myself out of debt. I worked to improve my credit rating. I watched as housing prices went up 20-25% year over year. I thought %u201CHow will I ever be able to afford this? How can other people be able to afford this?%u201D

Now I know; they couldn''t afford it. Just this past year, we moved into our house. I have a 30 year fixed rate mortgage that I can afford, even if the value of my house drops.

We couldn''t afford to buy a new car. We are hoping to get one next year. We have a 10 year old car with no air conditioning or heat but it runs. I understand that she needed a reliable car to get to work. But did it have to be SUCH a nice car? And was it an SUV? I think her story would definitely have been more sympathetic if she hadn%u2019t gotten a new car. She could have leased or gotten a reliable used car?

[nj2008-2009]

I have to admit that I have been looking at these stories in the paper and on TV and want to identify with them. But I have yet to see a story that I go, "Wow that person really did get a raw deal." The stories that I see are people who wanted what they wanted even though their brain told them hey you can''t afford that. They are experiencing delayed consequences. Lori should have moved out of her house when she couldn''t afford it. And she would have been much better off for it.

[studentgirl]

AGAIN you people amaze me. Yes, Lori was naive to think that something that appeared too good to be true, wasn''t exactly that, too good to be true. however, can we stay focused people, there are millions of families in the same or a similar position as Lori. So if Lori is sooo dumb, what does that say about the rest of them. ARE YOU SUGGESTING THAT 25% OF THE AMERICAN POPULATION ARE IDIOTS? OR would it be closer to the truth to say 25% of the American population believed what they heard, trusted the wrong people, and ended up in trouble.But thats NEVER happened to any of you, RIGHT??!!? If this was a case of a few people getting screwed by a few real estate professional then I would say "that was stupid, bet they''ll be more careful next time!!" But this is a nationwide problem of catastrophic proportions. You can sit in judgment because you''re not in the same position if you so choose, HOWEVER, with 1 in 4 American homes being in foreclosure don''t think for a second that this is EVERYONE ELSE''S problem. THIS IS EVERYONE''S PROBLEM!!! It would be well within our best interests, as a country, to rally together and help these families through this crisis. If you stand in judgment and turn your backs on these people because of their errors in judgment, then you have NO RIGHT TO EVER EXPECT ANY FORGIVENESS FOR ANYTHING AND NO RIGHT TO TRY TO CORRECT YOUR MISTAKES OR MAKE THINGS RIGHT. whats good for the goose, is good for the gander.

[studentgirl]

AGAIN you people amaze me. Yes, Lori was naive to think that something that appeared too good to be true, wasn''t exactly that, too good to be true. however, can we stay focused people, there are millions of families in the same or a similar position as Lori. So if Lori is sooo dumb, what does that say about the rest of them. ARE YOU SUGGESTING THAT 25% OF THE AMERICAN POPULATION ARE IDIOTS? OR would it be closer to the truth to say 25% of the American population believed what they heard, trusted the wrong people, and ended up in trouble.But thats NEVER happened to any of you, RIGHT??!!? If this was a case of a few people getting screwed by a few real estate professional then I would say "that was stupid, bet they''ll be more careful next time!!" But this is a nationwide problem of catastrophic proportions. You can sit in judgment because you''re not in the same position if you so choose, HOWEVER, with 1 in 4 American homes being in foreclosure don''t think for a second that this is EVERYONE ELSE''S problem. THIS IS EVERYONE''S PROBLEM!!! It would be well within our best interests, as a country, to rally together and help these families through this crisis.

[studentgirl]

AGAIN you people amaze me. Yes, Lori was naive to think that something that appeared too good to be true, wasn''t exactly that, too good to be true. however, can we stay focused people, there are millions of families in the same or a similar position as Lori. So if Lori is sooo dumb, what does that say about the rest of them. ARE YOU SUGGESTING THAT 25% OF THE AMERICAN POPULATION ARE IDIOTS? OR would it be closer to the truth to say 25% of the American population believed what they heard, trusted the wrong people, and ended up in trouble.But thats NEVER happened to any of you, RIGHT??!!? If this was a case of a few people getting screwed by a few real estate professional then I would say "that was stupid, bet they''ll be more careful next time!!" But this is a nationwide problem of catastrophic proportions.

[studentgirl]

AGAIN you people amaze me. Yes, Lori was naive to think that something that appeared too good to be true, wasn''t exactly that, too good to be true. however, can we stay focused people, there are millions of families in the same or a similar position as Lori. So if Lori is sooo dumb, what does that say about the rest of them. ARE YOU SUGGESTING THAT 25% OF THE AMERICAN POPULATION ARE IDIOTS? OR would it be closer to the truth to say 25% of the American population believed what they heard, trusted the wrong people, and ended up in trouble.But thats NEVER happened to any of you, RIGHT??!!?

[studentgirl]

sorry guys, my laptop went nuts ...the first one i sent is the one intended.

[pattisaid]

I am a fan of Theresa Parks. You can read about her in Yahoo News. Nick Carey wrote the article. She gets it.

[11141971]

yes i want to now when some one askes for help no one wants to help them out im a father with a wife three boy''s and we cant get help to get a new house because no one wants to go after are mortgage company for what they did wroung to us by putting us in a loan that we cant aford any more they have bring home over four thousand dollars and we only bring home one thousand eight hundred this company did even pay off are van so we lost it they wouldnt refinance are loan they said they couldnt touch us for two years.

clifton cousens
[e-mail]

[toddspfld1]

People need to be informed on foreclosure process from start to finish. Each state preforms this process differntly. Some states are judicial states. Some are non judicial states. Some states are both judicial and non judicial. Some states use mortgages, some use Deeds of trust. People should contact a HUD certified counselor. These can be found on the HUD websight. They should have gone thru the Home steps program. Please be aware that some people are out to take advantage of people. Call about them. Get referances of people that they have helped. Get the word out. Homeowners in crisis are not out of options. If worked on early (within the first two months)most foreclosures can be stopped.

[forthepeopl1]

MR POTATO-HEAD LOOKS A LITTLE SCARD...

But its effort will have little effect on the ability of the average American to get a cheap loan for a new home, car or college education even as it has a large effect on U.S. banks'''' ability to fix their balance sheets by racking up fat profits.

If that sounds unfair, welcome to the latest episode of a brutal new American business ethic, in which the government bails out bad bets by risk-taking banking executives in New York with money that it borrows from middle-class families and foreign investors. The effort is gilded with fancy financial language and cloaked in the guise of a rescue that helps all citizens, but the reality is that Washington is essentially robbing the poor to help the rich.
In just the past few weeks, it has broken all of its own rules by providing hundreds of billions of taxpayer funds to brokerages at special auctions, opening a bigger "discount" window to permit a wider range of financial institutions to beg at the government till and accepting weaker-than-normal collateral such as iffy mortgage-backed securities. The Fed has put the government in the position of being the payday lender of last resort.

[kennedy7955]

I wonder how many people are going into foreclosure simply because their homes are worth less than they owe. It may be all this publicity gives some the comfort and excuse to walk away from their obligations.

You can''t give a house back as I heard one supposed expert call a foreclosure. The bank never had the house, they only financed it. It is time to get real on this topic as well as many others in this land of confusion.

[wavin2ya]

I would just like to say that my husband and I have gotten into a mortgage that we now can''t afford because of promises made by a lender. we are now struggling to pay back a forbearance that was ALL MY LENDER would allow for or have my home forclosed on. So instead of 1000$ a month they want $2000 for seven months. I can''t make that because my husband is a trucker and we have been HIT HARD by the fuel prices. we barley make enough money for food every month on top of other bills and mortgage. We have never had it so hard for so long. I have been putting every extra dime towards mortgage forbearance but am finding as the months tick by it is getting less and less and PLEASE DO NOT judge me. We all have had problems and my husband is working SOOOOOOO hard to make money not coming home to see us for weeks at a time. I don''t know what else to do. It saddens me to see people blaming people like us for getting into this mess and saying we should have been more responsible. It is easy for people who are not struggling to say this!! don''t judge until you have walked a mile in my shoes!!!!

[restew]

I do not have sympathy for the couple from CA and their mortgage problems. She is a professional REA with 6 yrs of experience. She, presumbably, knows the ins/outs and types of mortgage loans/risks assumed, etc. Now she cries fowl and wants a 2 or 3% loan?! I just re-fin''d with a 5.625% because I built an excellent credit record over the yrs. Am retired now, reduced income and living expenses keep rising (especially gas, food, and property taxes). Why should she who knows the ropes of mtg financing be rescued from foolish greed with a 2/3% loan when I worked over 30 yrs to be granted a 5.6%??? My sympathies lie with those who were ignorant of mtg financing and were led into an inappropriate type of loan; yet, even those have a "common sense" obligation to take care of their responsibilities. Pay bills before entertainment, even food (in the sense of dining out constantly).
Thank you.

[pierson98]

I would just like to say that my husband and I have gotten into a mortgage that we now can''''t afford because of promises made by a lender. we are now struggling to pay back a forbearance that was ALL MY LENDER would allow for or have my home forclosed on. So instead of 1000$ a month they want $2000 for seven months. I can''''t make that because my husband is a trucker and we have been HIT HARD by the fuel prices. we barley make enough money for food every month on top of other bills and mortgage. We have never had it so hard for so long. I have been putting every extra dime towards mortgage forbearance but am finding as the months tick by it is getting less and less and PLEASE DO NOT judge me. We all have had problems and my husband is working SOOOOOOO hard to make money not coming home to see us for weeks at a time. I don''''t know what else to do. It saddens me to see people blaming people like us for getting into this mess and saying we should have been more responsible. It is easy for people who are not struggling to say this!! don''''t judge until you have walked a mile in my shoes!!!!

Posted by Wavin2Ya at 09:33 AM : Mar 29, 2008
-----------

I am judging you. You bought a house that you could not afford to make payments on. You signed a contract that imposed obligations on you, which you either did not understand or did not care about.

And I will not have to walk a mile in your shoes, because I don''t have to. I didn''t poor decisions like you did.

[wv_chci]

My husband & I were asked to talk with his friend - a retired friend who went to work for some great company that did loans/mortgages - I told my husband, that common sense tells ya if it sounds too good too be true, then it is. We cancelled our "talk" and have stayed with our original mortgage (since 1990) and couldn''t be happier-I''m sorry, I just can''t feel anything but ticked off at the greed of lenders and the ignorance of borrowers