She gets to keep her house.

[safeinOhio]

My friend just found out from Chase that she qualified for the new Obama Plan to refigure her mortgage. She was in foreclosure. Now the bank is going to extend her mortgage to 40 years instead of 30 and lower her payment to 31% or less of her take home pay. She had been worried sick for the last few months. :)

[bigwillq]

1. Good news.

Good for your friend. :) :hi:

[slackmaster]

2. Sounds like a reasonable solution

I hope she can keep up with the new payments.

[PassingFair]

3. Good luck to anyone gaining any equity in their homes.

Hard to do on a 40 or 50 year mortgage.

In Japan, they have 100 year mortgages.

[safeinOhio]

5. Not worried about that

She'll be 110 at payoff time. The deal is, her house is still not even near what she owes on it, but she can now make the payments and not have to move.

[PassingFair]

6. I think some people will be better off moving than refinancing into...

homes they will be paying on until they're 110.

Hopefully she can SELL that sucker before then!

[angstlessk]

18. It beats the hell out of being homeless through the forclosure option

with ruined credit even renting becomes a problem!

[angstlessk]

7. equity was never a consideration when we bought our first home

loving it was...a fixer upper, cause that was all we could afford...turned out to be our savior! Sold it and bought a home for cash in Detroit.

[PassingFair]

9. Our first house was in Detroit, we paid cash for it as well.

At $12,000, it wasn't WORTH the closing costs
to by a mortgage on it!

That was in 1990...we sold it for $22,000 in
1995, and I noticed that someone REFINANCED
it to $98,500 about 5 years ago.

That's how crazy the re-fi market got in Detroit!

[babylonsister]

4. That is really good news. I hope that works for a lot of people! nt

[blondeatlast]

8. Good to hear! Much better to have occupied homes than 3-4 foreclosures/abandonments on every street.

Due partly to the breakup of my marriage, I was scorched by my bank but I still endorse the Obama plan overall.

[truedelphi]

10. Glad to hear about this.

Score one for the Admisnistration.

[Corey_Baker08]

11. Great News!!!

[BlooInBloo]

12. \o/

[valerief]

13. That's wonderful news! I thought the refinancing talk was all hat, no cattle.

Good to see its horns.

[FlyingSquirrel]

14. Socialism!

:crazy:

[Progressive_In_NC]

16. It's not socialism, they extended her term 10 years which means the bank will get 400+% of the value

of the home in interest and fees.

A 30 year mortgage of a 140K house means in 30 years you pay 350K to the bank. Add 10 years to that and it's another 100+K.

but I get your point.

[safeinOhio]

15. According to her lawyer

if they foreclosed on her they would sell at auction and come after her for the balance. All she has is a pension and SS. Before they couldn't touch those two, but now all the banks do is wait until your money is direct deposited and then with draw it from your account. They can take it all every month. Use to be the law prevented that, but the banks found away around it by taking it after deposit. That law needs to be fixed.

[Iggo]

17. Excellent news!

That much worry can eat you up inside.

[rvablue]

19. Excellent news, indeed. Nice to see Obama's changes in action! n/t