"Now I realize many of these lenders are helping folks in-house, but the idea behind the H4H program was that all these lenders would flock to them in droves to get nice, clean, FHA-insured loans. The sticky point is the principal write-down. Word on the street is that the lenders either don’t see a better value in writing down principal as compared to foreclosing on the house, or the lenders can’t because they’re acting as servicers and the loans were sold off to investors, and the investors don’t allow the change."I wonder how much this has cost the taxpayers so far (not that that matters, of course). Why does one picture some bored HUD employees at their desks in between coffee, bathroom breaks, text messaging and nail filing waiting for the phone to ring . . . but I digress. Anyway, "they" have a new plan, which includes 40-year mortgages. Sounds pleasant.
Thursday, November 20, 2008
Posted by Harriet at 11:46 PM