How you like to have a 4.8% home mortgage? I know I would.

[Sbroadus]

Saw this this morning on one of the national morning shows. Lady was about to be forclosed on her home. The company instead of taking the house decided to lower her rate from 7.5% to 4.8%. I guess I have been doing things wrong all these years. It looks like I should have not been paying my bills rather than paying them. What a great country we live in. How do the rest of you feel about this? Just wondering if I am the only one upset by this.

[hotty toddy]

Aint it great that people are rewarded for wrong doing while the people who live up to there end of a contract, still just chug along getting a worse deal than the wrong doing.

To me this is like rewarding a child for stealing candy with a chocolate bar.

[Duckdawg10]

that is so bass ackwards!! This world is so screwed up. Rewarding FOOLS for bad money management!

[regishay]

which morgage company was it?

[Sbroadus]

I don't remember. It was a national company. I know if it would have been mine I would have already called.

[Little river]

I do have a 4.75% 15yr. fixed with Regions had a 30yr. fixed at 6.75% refianced about 5yrs ago alomst there.

[Dutch Dog]

I dont know, I can see both sides of it. Do we really want to add to the massive amounts of foreclosures already out there? This way, the company gets their money, albeit a little less, the lady keeps her house making making a lower house payment. This is a way to stop the snowball effect. Who knows, maybe years ago when she purchased the house she could afford it and now with the economy taking a sharp nosedive she can no longer afford it. Maybe she has always had a good payment history and circumstances beyond her control have caused this. (playing devils advocate)

[Sbroadus]

I would bet that she is not having to pay anything to refinance like you and I would.

[sondance]

I don't agree with it in principal but, on the flip side it is a good deal for us all. Foreclosures lead to a glut of cheap houses on the market which in turn drop the value of all homes. I had rather see this than a bunch of foreclosures. Plus, right or wrong I don't want to see anyone lose their home. I would much rather see this as well than another tax payer financed bailout of mortgage companies

[cwink]

You can find just about any situation out there to justify your case.. I bet if a 45 yo woman became a widow all of a sudden and couldn't afford the house they would forclose on it.. Plain and simple.. But they won't forclose on it somone who can't keep up the payments because the economy took an unexpected turn and somone didn't make sure they had enough safegards in place to account for an increase in costs.

I fear that when the govt starts bailing these people out that more and more are going to cry for help.. And the lawyers are going to be lining up to sue the govt..

[tombstone]

Aint it great that people are rewarded for wrong doing while the people who live up to there end of a contract, still just chug along getting a worse deal than the wrong doing.

To me this is like rewarding a child for stealing candy with a chocolate bar.

I agree as well.

I don't want anyone to be booted from there home either, but It really is backwards.

[rciii]

I'm curious if they refi'ed her at 30yrs again or just took her % down on her current loan.

[SoftCall]

If the government homeowner bailout that was being discussed several months ago is in play here, the profits (or a portion of them) from the sale of the home (when they sell if in the next 5 years in think) will go to the Feds.