Near Philadelphia, the situation of Jay and Bonnie Silverstein [ www.npr.org/2012/30/145995636/freddie-mac-betting-against . . . ] exemplifies the problems millions of us homeowners are facing. Their story of hardship is similar to mine.
To summarize, the NPR story explains how the Silversteins had to "short sell" a home long after purchasing a newer home around the time of the economic crash that began in 2007. Their mistake, they admit [i.e., buying a second home before their first one was sold] cost them most of their retirement savings when they had to drain their 401(k) to make two mortgage payments for over two years. But their other mistake, which so many of us are guilty of, was in having an overbundance of confidence in our financial institutions and the real estate market - obviously highly manipulated by the insiders.
Like me, the Silversteins have a modest pension and have been making timely mortgage payments despite being squeezed hard. They, as I, have been unable to secure a re-fi which would lower their interest rate and, thereby, save them about $500 a month. This is the amount I need and would receive if I were successful in securing a re-fi or modification of my mortgage through a lower rate of interest. For me, it would mean paying only half of my income toward housing, not two-thirds, as I am doing now.
The Silversteins are in financial limbo because of a Freddie Mac rule that restricts people with a short sale in their history from refinancing for up to four years (after the short sale).
In my case, a Fannie Mae underwriting rule prevents them from considering income I receive from renting out rooms from time to time. But this is the only income source available to me for supplementing my pension and social security benefits - which together total less than $3,000 a month. My mortgage payment is slightly under $2,000 a month.
All of these struggles are continuing for us while the Freddie Mac and Fannie Mae CEOs are earning millions of dollars a year in compensation. Aren't you outrageous? Isn't it time to do something?
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ReplyDeleteIf only we could catch a break. $500 a month isn't a lot to most people, but it would enable those of us in financial limbo to put money into the economy by spending it on much-needed home repair/maintenance issues we have to defer because we are being squeezed so tightly. Most mortgage modifications would lower our mortgages by about that amount if only the banks would relent. They need to spend/release some of the money they were given when they were bailed out!
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ReplyDeleteCiti rejected my application for assistance on my mortgage stating it was because of "excessive forbearance" and the investor(s) would not consider any loan principal forgiveness or deferment because it won't reduce my mortgage so that only one-third of my income goes toward mortgage payments. Yet, tht forces me to continue to pay two-thirds of my limited income.
ReplyDeleteCiti got taxpayer money; why won't they use a little of it to help me?