Friday, October 8, 2010

We, the (RESPONSIBLE) people...

Here we go again...THIS TIME, the feds (yes, HUD, the Department of Housing and Urban Development, with their sister and brother, Fannie Mae and Freddie Mac, ARE "the feds"), and they are giving away even MORE money for irresponsible behavior. Now, now, I know it's not fair to say...many people ARE underwater on their mortgages through no fault of their own, but still...why are "these programs" only for people who are "struggling," and/or "facing foreclosure." Why can't they also be for other (re: responsible) people?

"Well, because 'others' won't face the public repudiation or degradation of their self esteem...or being...or credit rating." Oh, thanks Jack (my alter ego, Jack Armstrong of the award winning Armstrong and Getty Radio Program, known for his nasally, high pitched, whiny voice)...but once again, you miss the point. I KNOW FOLKS NEED ASSISTANCE...I'M NOT SAYING "WE SHOULDN'T HELP THEM."

What I AM saying, however, is that this money is "going, going, gone." Oh sure, some of it will be paid back...and some of it will go to employees of these federal-backed intermediaries or "middle man companies," like NACA (Neighborhood Assistance Corporation of America). But IT'S GONE!!! Even statistics have shown that a good percentage of those helped by these "programs" end up defaulting anyway...

But,with that said, the NACA will be here this weekend at Cal Expo in Sacramento, CA. They will be in town for FIVE days, 24 HOURS a day (having just come from a five day gig in So Cal), to promote many of their programs, including the Home Save Program, which reportedly helps (irresponsible?) homeowners restructure their existing mortgage by permanently reducing the interest rate to achieve an affordable mortgage payment.

That's right...if you're underwater (specifically) and meet a "whole bunch of other" criteria, you could qualify to have your mortgage interest rate reduced to 3.625%, 30 year fixed. You heard correctly, all you have to do is stop making your payments for a few months (on a home where your balance exceeds the assessed value) and praise the Lord, you could be in line for huge savings. But if you've always done the right thing...and refinanced through legitimate lenders (my own home's mortgage rate is a reasonable 5.5%), kept up on your payments, etc., well, best 'o're on your own...

"But, but, but, the economy is improving...why are you getting all worked up? You should have called for this two years ago...BEFORE all these people became 'in your words,' irresponsible!!" Hello again, Jack...but there you go again. I WAS calling for assistance for the responsible, or "pre-irresponsible," way back when the bottom first fell out of the housing market. Many, MANY folks knew it (the housing bubble) was about to burst.

So anyway, since 'I' am underwater (as are a considerable number of other people), I sent a request for evaluation with the NACA...haven't heard from them...not holding my breath. Now, wait a minute, Jack...before you jump on me for espousing all my "reality, responsibility, and right & wrong," rhetoric...only to then apply for a program designed for those 'irresponsible' homeowners? The height of hypocrisy, you say? Well, for a 3.625% 30 year fixed rate, I'll even change the name of this post to, "We, the (Hypocritical) people..."

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