Mortgage Principal Reduction?

[Slipknot]

Originally Posted by Jim in CT

..None of this helps existing homebuyers who made responsible decisions and who struggle to do the right thing all the time. These programs don't help us, but we will be stuck with the bill.

F that

I am almost done paying for my own home, I am not gonna pay for anyone elses'.

[Jim in CT]

Originally Posted by Slipknot

F that

I am almost done paying for my own home, I am not gonna pay for anyone elses'.

Oh yes you are. Your federal income taxes, and the fees you pay to your bank, fund these loan modification programs.

It's disgusting. I tell my 6 year-old that decisions have ramifications. Try telling that to a liberal. Lack of responsibility is one of the pillars of liberalism, one of the core beliefs of the foundation of liberalism. Everything bad that happens, must be someone else's fault.

Gimme, gimme, gimme.

[zimmy]

Originally Posted by Slipknot

F that

I am almost done paying for my own home, I am not gonna pay for anyone elses'.

I don't think you pay anyone elses in any way. I could be wrong with the new law, but under HARP you certainly don't. It just makes it so people who can't refi due to market circumstances beyond their control, can. Fannie mae will make less on interest, but it should not require any change in tax policy. I may be wrong, but I don't think in this case I am.

[zimmy]

I can't find specific details, but it does look like the new law would encourage delinquincy. If that is the case, it is insane. Have to see real info first, but...

Update: what I just read on LA Times is not the law tied to HARP that I had recently discussed with some guys in the financial/mortgage industry. To me, HARP makes sense because principal gets reduced as more of the payment goes toward principal. Just dropping the principal for delinquent payers is a harder sell, although anyone who wants to buy or sell a home is held hostage by the situation.