The rich have NO IDEA what it feels like .....

[Mind_your_head]

I have lived in my house for almost 10 years. I STUPIDLY was seduced into refininancing my 30 year fixed mortgage into an ARM which will reset January 2009. I'm screwed.

I didn't buy any big screen teevees or vacattions.....I just did it to live for another few years. I'm screwed.

Now if the mortgage company would agree to accept/continue to accept the amount that I've been paying them ~ which is high~ I might be able to continue ....... I don't "get" why they want to 'honor' this arm which will most likely throw me outta my house and net them less profit in the end.

[jwirr]

1. Do ask them - I doubt they are interested in more foreclosures if they

can make a deal.

[Mind_your_head]

2. Btw, I don't have any other debt........no credit cards, no car loans, NOTHING n/t

[roguevalley]

10. sweets, negotiate with them. tell them what you can pay and ask

them to accept it. they want you in, not out. Take a 50 year mortgage at a rate you can pay if you have to and save to pay it faster. I am. I wish you luck.

[undergroundpanther]

3. It's house theft

One way banks can increase wealth and concentrate it into fewer hands.



“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

– Thomas Jefferson, Letter to Treasury Secretary Albert Gallatin (1802)

Jefferson had it right. More than 1.5 million homeowners are expected to enter foreclosure this year, and about half of them are expected to have their homes repossessed. If the dire consequences Jefferson warned of 200 years ago have been slow in coming, it is because they have been concealed by what Jerome a Paris calls the Anglo Disease – “the highly unequal economy whereby the rich and the financial sector . . . capture most of the income but hide it by providing cheap debt to the middle classes so that they can continue to spend.” He calls “finance” the “cannibalistic” sector in today’s economy. Writing in The European Tribune this month, he states:

"One of the more attractive features of the financial world, for its promoters, is its ability to concentrate huge fortunes in a small number of hands, and promote this as a good thing (these people are said to be creating wealth, rather than capturing it). . . .
Of course, the reality is that such wealth concentration is created by squeezing the rest, as is obvious in the stagnation of incomes for most in the middle and lower rungs of society. This is not so much wealth creation as wealth redistribution, from the many to the few. But what has made this unequality . . . tolerable is that the financial world itself was able to provide a convenient smokescreen, in the form of cheap debt, provided in abundance to all. The wealthy used it to grab real assets in funny money, and the rest were kindly allowed to keep on spending by tapping their future income rather than their insufficient current one; in a nutshell, the debt bubble hid the class warfare waged by the rich against everybody else.”

http://www.webofdebt.com/articles/subprime_defense.php
http://homeequitytheft.blogspot.com/2008/01/cbs-news-60-minutes-on-subprime-house.html
http://homeequitytheft.blogspot.com/

[Recursion]

4. Machiavelli wrote about it even earlier

Everybody knows The Prince, which was his advice to monarchies, but he also wrote Discourses on Livy, which was his advice to republics. His main two points were: avoid hiring mercenaries to fight your wars (and as a corollary avoid fighting wars that require mercenaries) and curb the power of the financial elite. Now, this being Machiavelli, his idea of "curbing" was to have their throats slit as soon as you were elected; hopefully we're past that. But his point was well-made: the very rich are more of a burden on the economy than the very poor; they get more and contribute less.

[Selatius]

7. Unfortunately, the entire monetary system of the US is now run by banks.

Jefferson would not recognize the United States in its current form. He would probably be tempted to make comparisons to the old British Empire.

[Ani Yun Wiya]

11. Another exellent post.

You are one amazing storehouse of succinct information.

[On the Road]

5. You Are Wise to Begin Dealing with the Problem Now

Talking to your lender is a good idea while you're still current, but even before then, you might to call these people:

http://www.hopenow.com/
Hotline [phone]

I do not know a lot about their efforts other than that they are a group formed by counselors, servicers, investors, etc, and their mission is to keep people in their houses and avoid foreclosure.

If you get anywhere, please post on DU. I am sure others have this problem.

[Mind_your_head]

6. Nobody is there to help, unless they are going to profit from it financially.

That's what 'government' used to help do, until we 'drowned it in the bathtub'. (thanks Grover, not the purple guy on Sesame Street, but Grover Norquist - look him up!!!!)

[On the Road]

12. OK, So Tell Me, Wise One,

What is your reasoned opinion of the Hope Now project? Hmmm? There are people's entire financial future at stake here.

[SoCalDem]

8. If you have an extra room, start looking for a "tenant"

maybe there is someone out there who needs a place to stay, and with what they could pay you, you could afford the re-set.

You basically bought your house from yourself, at a higher price than you can afford (after receiving cash in the deal), and unless the bank will work with you (depends on who they are and how eager they are to eat a loss), you will either have to move, or find a way to earn enough to pay the extra until you can get a conventional loan...but even then., you would be financing more than the house is probably "worth", and banks will probably not be lining up to make those kinds of loans..

My best friend just moved from her over-leveraged house this last weekend.. She's renting a smaller place, but she's saving almost $1300 a month, and if she had stayed in the other house, that $2200 a month would have been like pouring money into a hole.. (owed almost $300K on a house that wouldn;t sell for more than $180k now)

[SoCalDem]

9. If you have an extra room, start looking for a "tenant"

maybe there is someone out there who needs a place to stay, and with what they could pay you, you could afford the re-set.

You basically bought your house from yourself, at a higher price than you can afford (after receiving cash in the deal), and unless the bank will work with you (depends on who they are and how eager they are to eat a loss), you will either have to move, or find a way to earn enough to pay the extra until you can get a conventional loan...but even then., you would be financing more than the house is probably "worth", and banks will probably not be lining up to make those kinds of loans..

My best friend just moved from her over-leveraged house this last weekend.. She's renting a smaller place, but she's saving almost $1300 a month, and if she had stayed in the other house, that $2200 a month would have been like pouring money into a hole.. (owed almost $300K on a house that wouldn't sell for more than $180k now)