Declining Stocks, Smoke Screen Fixes

The AP Business Writer, Tom Paradis, on the ABC news web page had his take on the decline of the stock market today. Even the Billion that the Feds put into Fannie and Freddie, could not stop the traders and buyers from loosing faith.

The Financial Institutions will have their quarterly reports in soon. All those homes that went into quick sale with debt that was forgiven in $100,000.00 to $200,000.00 range for each home, and causing their neighbors homes values to decline will be showing it's ugly head in those reports as money lost. Also all those foreclosures where the money is lost and the banks have to sell them for a lot less than what is owed will also show itself in those reports.

Earlier today, Chairman Bernanke was seen as the hero for the failing economy and the home mortgage foreclosures. However, even the Fed's new rules for the lending companies can not turn around this economy, because the new rules only apply to 'New Future Home Loans'. There is nothing to stop the next wave of the adjustable that are coming in current existing mortgages whose times are closing in for the rate change. Also the home mortgages whose time is still one to five years away for the adjustable rate change are not going to get any help either, since their loans existed before the new rules were put into law. Nope, the only ones getting the help are those who either do not need the help or the future new home owners.

The Financial institutions are refusing to even consider helping the borrowers get into a 30 year fixed that they can afford. Yet, the monthly on the 30 year fixed would be more affordable, which means fewer foreclosures and better economic times. But those mortgages whose adjustable will be changing in the next 6 to 12 months, will not be affordable once they adjust. Therefore there will still be plenty of foreclosures on the horizon. In the mean time those same homes have fallen in value since homes in near by communities have 'Quick Sold' their homes for a lot less than what was still owed on the homes and $200,000.00 to $300,000.00 less then what the homes were valued at 1 to 3 years ago.

My home has dropped in value $250,000.00, making it valued at $100,000.00 less than what is still owed in the mortgage. A friends home had dropped in value $300,000.00, making her home valued at $200,000.00 less than what is still owed on her mortgage. We are all stuck between a hard place and a rock of not being able to sell because that would mean giving our home away and still owing monthly payments for years to come at the adjustable rate. Unless the company is willing to forgive what was lost with the 'Quick Sale'. But then the following year the amount 'Forgiven' would have to be counted as income. Imagine having to count the amount forgiven of $100,000.00 to $200,000.00 for income in your taxes. Yep, just call me a Hertz. I'll climb into the cemetery grave hole, by myself.

I bought my home, when both my husband and I had a stable job, stable retirement, stable everything. And only went for what we could afford. Only after my husband's job was outsource did we fall into trouble. And with the loss of medical insurance the medical bills piled up, while my husband worked temporary high tech jobs in his field. Grasping for straws, we refinanced. We stated that we wanted the 30 year fixed. We were told we had the 30 year fixed. When we were signing the papers, we were reassured that it was the 30 year fixed, and that the lending institution just had it worded differently, but that it was still the 30 year fixed. Well, We found out a month later, 'IT WAS NOT' a 30 year fixed! And we are now stuck. It was our word against theirs. And no one wanted to help us. Not even the new company whom bought our account 6 months after that from the cheating company.

We got ripped off, and cannot get out of it. The Financial institution who bought our account in November 2007 when the mortgage fiasco finally came out and foreclosures were abundant, is refusing to give us a 30 year fixed, which the other company, they bought us from, ripped us off when they lied to us in the first place.

Those new laws, Will--Not--Undue any of the current bad lending practices that effect the current mortgages whose APR's are coming up. And there is no way to stop them.