Ms. Aguiar should not be seeking a write-down in her mortgage principal. Houses might be selling for $450-500K in her neighborhood, but at the bottom, $300K might be the price. And if this economy unfolds into a full-blown meltdown, they won't be able to give these houses away.
Dawn, this video is for you:
THE HOUSING BUBBLE EXPLAINED ** SPECIAL SHEEP VIDEO!
2008-11-25: Homeowners say no help from lenders
Customers of Countrywide, Wachovia and other lenders describe the firms as uncooperative, ineffective and rude. Borrowers say they must navigate a maze of phone banks. They say lenders won't offer good deals."They're supposed to be getting people into fixed-rate loans they can afford, reducing their principal," Aguiar said. "That's not what I'm getting from Countrywide."
"Countrywide says it wants to help people restructure? That's baloney," said Dawn Aguiar, who bought her Fremont home for $587,000 in 2005. "They have not been helpful at all." She financed the purchase with $586,000 in Countrywide loans.
Homes in her neighborhood sell for $450,000 to $500,000. Her house is "under water" — worth less than the loan.
Aguiar said she often hears Countrywide and other lenders are aggressive in finding ways to redo loans.
"They're supposed to be getting people into fixed-rate loans they can afford, reducing their principal," Aguiar said. "That's not what I'm getting from Countrywide."
Her adjustable rate loan balance increases monthly. She's behind in her payments.
"One lady I spoke to was rude, she had a real attitude," Aguiar said. "She talked down to me like I was a deadbeat."
Ok, lets check out her house...
4343 Delaware Dr Fremont CA 94538
3 beds, 2.0 baths, 1,104 sq ft
$587K for 1100 sq ft!!!
These are the idiots we're wasting tax dollars on. Lets do the math:
- assume 20% down
- $470K mortgage loan
Historical affordability guidelines are 3x gross earnings for loan amount. Lets use 3.5x...
$470K/3.5 = $134K
The Aguiar household must earn $134K, right?
(at 10% down, household income of $150K!, 0% down, $168K!)