Mortgage Bail Out Proposal to Aid Sub Prime Crisis
Okay, so the bailout is a proposal.
And the problem I see, is that if the borrower’s payment is $2800 and the recast payment is supposed to be $4200, who is absorbing (loosing) the $1400 monthly or $16,800 annually? (not counting interest).
Is it the lender? Is it the government (taxpayer)? Or is it the “entity” that purchased the loan and currently owns it? Or will it be added to the homeowner's loan balance... and the borrower will just have more negative amortization. I think, they better “think” again.
Oh, and the above payment example is an "actually recast" from someone who called me to discuss their situation. If interest rates don't change their $2800 monthly will be $4200 next October. That's their recast.
If you are a homeowner in this situation: there is a toll free number to call 888-995-HOPE
And the problem I see, is that if the borrower’s payment is $2800 and the recast payment is supposed to be $4200, who is absorbing (loosing) the $1400 monthly or $16,800 annually? (not counting interest).
Is it the lender? Is it the government (taxpayer)? Or is it the “entity” that purchased the loan and currently owns it? Or will it be added to the homeowner's loan balance... and the borrower will just have more negative amortization. I think, they better “think” again.
Oh, and the above payment example is an "actually recast" from someone who called me to discuss their situation. If interest rates don't change their $2800 monthly will be $4200 next October. That's their recast.
If you are a homeowner in this situation: there is a toll free number to call 888-995-HOPE
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