Comments on: Foreclosures and Declining Home Values – A Solution That Works http://dotconnectorblog.com/foreclosures-and-declining-home-values-a-solution-that-works/ Work smarter. Lead better. Achieve more. Thu, 11 Mar 2010 02:45:53 +0000 hourly 1 By: Regis Hadiaris http://dotconnectorblog.com/foreclosures-and-declining-home-values-a-solution-that-works/#comment-97 Regis Hadiaris Wed, 08 Oct 2008 19:53:02 +0000 http://dotconnector.wordpress.com/?p=448#comment-97 Some people have asked my why the Homeowner should get a lower initial payment. Here's why: 1. Homeowners in bad mortgages have been suffering to make payments on their mortgage and other monthly bills. 2. Giving Homeowners an initial "rate break" allows them to get caught up on payments they have missed or other bills. It gives them a chance to dig out with each payment, versus just treading water or even sinking deeper. Homeowners can live with being underwater if they see light at the end of the tunnel and have a chance to work their way out. Remember, the plan is about keeping people in their homes. 3. This gives the Homeowner a predictable and affordable monthly mortgage payment, and time to plan for the gradual increases to 6.375% (the final, fixed rate). Some people have asked my why the Homeowner should get a lower initial payment.

Here’s why:

1. Homeowners in bad mortgages have been suffering to make payments on their mortgage and other monthly bills.

2. Giving Homeowners an initial “rate break” allows them to get caught up on payments they have missed or other bills. It gives them a chance to dig out with each payment, versus just treading water or even sinking deeper. Homeowners can live with being underwater if they see light at the end of the tunnel and have a chance to work their way out. Remember, the plan is about keeping people in their homes.

3. This gives the Homeowner a predictable and affordable monthly mortgage payment, and time to plan for the gradual increases to 6.375% (the final, fixed rate).

]]> By: kimberck http://dotconnectorblog.com/foreclosures-and-declining-home-values-a-solution-that-works/#comment-96 kimberck Wed, 08 Oct 2008 17:47:12 +0000 http://dotconnector.wordpress.com/?p=448#comment-96 I completely agree with your thoughts on the cause of our current economic state (greed, overvalued homes, lack of federal oversight). I have been very frustrated throughout this $700B bailout process. We elect officials to enact policies and laws that make sense, and this appears to be a kamikaze approach to "do something" and do it quick. It is frustrating to see the bill fail, and 2 days and a couple hundred pages later pass loaded with individual political agendas just to get it through. I agree with stabilizing home prices, and simplifying these ridiculous mortgages. Its a plan that, as you say, treats the disease - not just the symptoms. Well said. I completely agree with your thoughts on the cause of our current economic state (greed, overvalued homes, lack of federal oversight). I have been very frustrated throughout this $700B bailout process. We elect officials to enact policies and laws that make sense, and this appears to be a kamikaze approach to “do something” and do it quick. It is frustrating to see the bill fail, and 2 days and a couple hundred pages later pass loaded with individual political agendas just to get it through.

I agree with stabilizing home prices, and simplifying these ridiculous mortgages. Its a plan that, as you say, treats the disease – not just the symptoms.

Well said.

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