About
Michigan Radio and Detroit Public TV are participating in a public broadcasting project called “Facing the Mortgage Crisis.” Over the next several months we’ll be bringing you reports, special shows, town hall meetings, and information about how we as a society can cope with the foreclosure crisis that is hitting the state and the nation.
We have an upcoming town hall meeting where you can get advice on foreclosure:
Thursday, November 12 – 7 pm
Bloomfield Township Public Library
1099 Lone Pine Road
Bloomfield Hills, MI 48302
All pages are currently open to comments, so feel free to ask a question or share your experience. Please consider following our updates on Twitter @ForeclosureMI. You can also reach us by email at michigan.radio@umich.edu.
I have a primary Freddie Mac mortgage at 7.5%, balance of around 95,000. This is doable but my concern in getting a lower interest rate on my home equity loan which is at $21,000. I used the home equity loan to update my primary residence during the boom. From what I understand I cannot refinance that portion which is from a well known bank at 11-13%. Is there any programs to assist people in my situation?
Sharon, thank you for sharing your story. We will look into your question and respond as soon as possible.
Best,
Nick Meador
Web Content Administrator
Michigan Radio
There are three key issues I “beg” you to address: (I am 58, and have been unemployed for three months.)
1) The unemployment statistics news folks quote occasionally suggest the unemployment numbers are leveling off – which is absurd. The reported unemployment numbers are derived from those “collecting unemployment” as reported by the states – and as folk’s unemployment benefits EXPIRE, and they are simply unemployed – and they are no longer in the numbers. This is NUTS! And even your business program reports numbers without including those whose benefits have expired and are still unemployed. This may be a difficult number to get a handle on, but to suggest on a specific week the numbers “leveled off” is fundamentally a lie – so I ask, why do you continue to spread untruth about a data point – just because you only get partial data? When will the truth be shared? (I will give you credit as once or twice you have alluded to the real number, but not often, and when you allude to it you almost apologize.)
2) To suggest the banks are helping consumers is another major untruth. The banks are simply helping those who the bank made a mistake on and should never have given a loan to in the first place. I have a 30 year mortgage at 6% for $300,000 – serviced by CitiMortage and owned by Fannie Mae, on a house now worth between $150,000 and $200,000 and I am current. Yet, the great catch 22, because I am current they have no interest in talking to me. I want to get ahead and anticipate when I may have trouble paying – this is a totally foreign concept to the bank. Second, I want them to lower the principle since, if they foreclosed and sold the house it would most likely sell in the $160,000 range. Their answer, “Oh no Mr. Keck, we never lower the principle!” And then, of course, I ask, “Why not?” – I do not get a response. Occassionally they will mumble it has something to do with Fannie Mae – but I wonder what they say to Fannie Mae when the house is resold after foreclosure for a smaller amount. Fundamentally, if you continue to suggest the banks are helping – when all they do is fix their own mistakes (and the consumers who made those mistakes), you are spreading another untruth. – yet your headlines keep saying there are all these folks out there who can help you with the bank….the truth of course – they CAN’T. Bank will not budge.
3) The other major issue for me as a 58 year old is the age one. And the only group I see covering this is AARP – primarily because, for news organizations, no HR person would, nor can, admit, they practice ageism. (How about interviewing an NPR HR person.) The truth – if you are 58 or older, there is NO chance you will get hired for a decent job – it will not happen. I just wonder if there needs to be a government program to assist these folks find/get work. And I would ask you to cover this issue in depth in your program. It was mentioned briefly today on Talk of the Nation, and I went to call in to respond, but, see next point!
Finally, as I am home I call in to some of the fantastic shows you have on during the day – only to find that the show was “recorded/broadcast earlier”. Why do you not inform the listeners on your station that, if they are suddenly passionately motivated to call in, they will get a shock – the show is NOT LIVE. Bottom line, you are seriously misleading your listeners by not mentioning this!
You have a great station and I am a very loyal listener – but until you gain some transparency, (about the banks, abut the unemployments numbers, about your shows that are NOT live thus you cannot call in and get on the air) I will not be a member.
John (I will provide a phone number if you e-mail me.)
My husband and I are two well educated professionals with several graduate degrees between the two of us. We are now in a situation which we would have thought beforehand, untenable.
Following a long job search (3 years!) my husband was able to find employment outside of the automotive industry, but not in Michigan. He has now relocated. I have been left behind, and have now also, found a job in the state my husband is in. I will be making less money, and we will no longer be able to pay for two households.
We are presently in a 30 year fixed, no PMI mortage in MI. What is now exceedingly difficult, is that we are so underwater on the home that we bought four years ago (because of the market), that we are now potentially facing foreclosure.
Several banks in our area have refused short sales, preferring to keep the loss off of the books longer. We have a lender, who until we can longer pay, will not talk with us. We have a date, we know when the funds run out, but still, they will not work with us proactively.
I feel like the Obama administration has really let down an entire segment of the mortage population: those of us who are in fixed mortgages, who are more than marginally underwater. Lenders have no incentive to adjust principles, and/or accept short sales. So in the end, we the homeowners, end up holding the bag, to everyone’s detriment.
Please help,
I went to a website that acts as a clearinghouse for home owners to get in touch with the bank that has their mortgage. http://www.hopenow.com
I filled out the online form and explanation of my situation. My company collapsed due to the GM bankcruptcy. I am now on unemployment. I did get a call from the Mortgage Outreach company that Citimortgage hired to handle the large volume of calls. First they said I was pre-qualified for 3 months and if nothing changed and I sent all the documents required, the modified mortgage would be permanent. This was great because my payment went from 692 to 478 monthly. Then the bank called back and said there was a mistake and because my mortgage is actually owned by Freddie Mac, I did not qualify. They said that Freddie Mac does not recognize unemployment as income. They told me to call back when I get a job. If I get a job making the same as unemployment then I get the modified mortgage. If I get a good job like I had, then I won’t qualify. So it sounds like they are asking me to purposely try to get a low paying job. I am not a schemer and don’t like to think that I have to play a game to get help. How can Freddie Mac NOT recognize my unemployment pay as income? This sounds rediculis to me? Do I have any more options?
Also I have a friend with the same mortgage situation only they told him that they would cut his mortgage payment in half for 6 months then his payment would be back to a full amount required. The kicker is that at the same time a balloon payment would be due for all the short paid 6 months? Where do they think his going to get this balloon payment from. He is trying to be pro-active and this is the best citimortgage can do? Again Please Adivse and thank you for any help,
Meg
Meg,
Sorry about the problems you are having. The following page was put together by Wayne County’s Foreclosure Prevention Program. It contains some good recommendations and information.
http://www.fightmortgageforeclosure.com/information.aspx
You might also want to talk with a counselor to explore other options for working with your mortgage holder. United Way’s 211 service can put you in touch with someone in your area.
We wish you luck. Hang in there.
Hello,
I am having problems with CitiBank also. I have been trying to modify my loan for many months. Currently I just got behind, because the amount short from four months of lower payments is now due. I hear things that banks are helping but I don’t seem to connect to the right person. I have been on hold for hours, ignored, hung up on and generally told that this was not going to happen.
I am unemployed and have used most of my unemployment benefits. I have been trying very hard to find employment, but nothing has come up yet.
In addition, I had contacted the IRS regarding waiving a early withdrawal penalty from my tax liability. I had used my 401(k) to keep a roof over my head while being unemployed. I was penalized 10% over and above what I would have paid had I earned the money. The Advocate office was a joke. I don’t think anyone there is aware of what the word advocate means. I was simply read the tax code and told that I must pay the penaltly. Several times, President Obama said that he was working with the IRS and that if taxpapers had extenuating circumstances that we could get some help. Well that did not happen either.
I keep hoping that a good job will materialize and I can wake up from this bad dream. I know many people are in the same boat, so I will pray that we can all find some type of solution to our problems…
Hello my Name Is Nahar Assayegh
In this hard time we need to get a bold actions regarding the mortgage crisis,we are not numbers,we are a human beings,we need to stand up and show them predatory lenders we are not backing down. we are fighting to the last breath for our rights,and our dignity
SO for people who are facing foreclosure don’t stand and do nothing,but make something out of nothing.
call the lenders as much they call you,and talk to alot of people,and talk to the Attorney General of your state,and ask your friend for advices,and try to talk to HUD,and see what options that you have.
Wishing you the best…at this hard times…
Hello,
I know a family in Jackson, Michigan who were foreclosed on after the husband got bone cancer in his leg. He had a bone transplant at Henry Ford Hospital, but Wells Fargo doesn’t care. Any help anybody can give would be greatly appreciated.
Thank you.
Adam Blossom
My husband and I biggest concern is that our home has depreciated 28% since we purchased it in 2006. This is our first home, and I purchased it 2 years prior to getting married. It is 100% financed in and 80/20 interest only loan.
Fortunately my husband and I are still employeed, and to date have no problem making our mortgage payment based on what we paid, but fear that when our ARM comes due, we will not have the money to refinance.
We feel that our situation is may be very common, but with all the programs that have been released, they do not seem to help anyone in this type of situation.
Are there any programs that are being talked about in which an owner can refinance on what was paid for the home, but is put into a traditional P&I 30 year fixed rate?
Thank you for your suggestions.
I think the main reason so many people have gotten into trouble is the people at the bank telling their customers they can buy more than is reasonable. A friend of mine was told and approved that she could by a house for $200,000 and she only made $55,000 a year. Luckily she was smart enought not to do that. Don’t the banks know what their lenders are doing?
Utilizing the free housing counseling and legal services that are available across the state is one of the biggest solutions available during these challenging times. I would encourage every homeowner in a pinch or who’s curious about what’s available for their circumstances to take advantage of the free certified housing counselors that exist statewide. You can call MSHDA’s hotline at 866-946-7432 or visit their website (www.mshda.info/counseling_search) to locate a free housing counselor near you.
Specifically in Washtenaw County, you can call our housing counseling hotline at 734-222-9595 to set up an appointment with a housing counselor or get more information about our programs. Speaking with a certified housing counselor is an important step in developing an action plan to help you resolve your housing crisis. A confidential assessment with a Washtenaw County housing counselor will include:
1. A review of your financial situation, analyzing income and expenses, to determine which foreclosure prevention options would best meet your family’s unique needs.
2. A call to the mortgage lender on your behalf to discuss possible workout options.
3. Information on services and programs in Washtenaw County that might be helpful to you during this challenging time.
4. A review for your eligibility of federal, state, and county foreclosure prevention initiatives.
5. Ongoing counseling, financial education and support to help you map out an action plan and meet your housing goals.
Arent we all ultimately responsible for the decisions each of us made? I dont want to see anyone lose thier home, But it is crazy to think that some demon banker possesed you and made you sign a mortgage contract. Mortgages are just like the market. It is speculation. We did not hear the banks asking for more money when the market was up and your house was worth more than you paid for it.
Oh please, the HUD counselor can do nothing more than I have been doing for the past 4 months. They too get hung up on, ignored, told that they have to send ANOTHER work out package to the lender, or hear that they just have too many requests to handle.
They have had mine for 75 days now.
I am sure Paul – that I am responsible for my decisions and yes I am responsible for my home loan and my second mortgage I took out to update my home years ago.
However, I am not responsible for the rules of lending.
I do not want a hand out, I want to be able to keep my home.
I see many people walking away from the home they have, because they are in upside down mortgages, have lost a job or taken pay cuts and now cannot afford the payments.
So, then they are going and purchasing another home for a quarter of the price of the house they walked away from. In the end, they have a house that is worth what they are paying and can afford.
Tell me which is better for the lenders to have everyone walking away from the houses, or working with them to stay in them?
What is the insentive to stay in a house with an upside down mortgage? Why would I want to make any improvements on that house?
Hello, I found your blog via Google while searching for hud foreclosures in wayne county ohio and your post regarding Facing the Mortgage Crisis looks very interesting for me
Re: John Keck’s post – point # 2.
I totally agree with Mr. Keck. Our mortgage is with Bank of America. My husband and I filed with the mitigation department two months ago to try and get some relief/help. We are finding the bank very unwilling to help. They told us that they are very far behind and it may take 6 months or better to even review our request. We followed a suggested letter format we found on an internet help site and sent them all the documents that they requested. Yet, they are in no hurry to help us. We are two payments behind, and yet they still show no interest. When we follow up, they don’t have any new information for us. We are just waiting to see if they will even consider our case! They told us that they do not have to help us and aren’t even certain they will. Truthfully, they do not seem eager to help.
We did not purchase a home that we could not afford. However, due to this Michigan economy, my husband and I have both taken major pay cuts. We are down over $30k per year from last year because of layoffs, furloughs and changes in our pay rates. We love our home and want to keep it. We owe a little more than it is now worth. (And yet, why are our taxes still based on the old value?) We take very good care of our property and are not abusive. It’s value was $235,000 at time of build six years ago, and now it’s value is around $150,000 because of the housing slump. We owe approx. $218,000.
What options are there? With the bank not showing any interest in helping us, we have no where to turn.
Did anyone read the CNN content from today’s Political article “Homeowners frustrated by mortgage assistance program” ? I am leaving the link here:
http://www.cnn.com/2009/POLITICS/08/31/homeowners.mortgage/index.html
It reads just like my story….same bank, same situations. Will we ever get help? My husband and I feel extremely hopeless.
Glad to see this. I believe the awful mortgage and housing crisis should be front and center in both the people’s minds and our elected officials. I believe this crisis is far from over and will pull this economy down and down. The death spiral needs to be stopped now.
My situation is I fell behind on my mortgage payments and called Chase Home Finance for assistance under the Obama plan. I also started applying for assistance under the Michigan Veterans’ Trust because I only needed to pay Chase $6200 and my monthly mortgage would be around $950. I could have swung that but when I sent my paperwork to Chase to fill out, the representative gave me a name and fax. When I called to follow up, I was told that I had to submit a ‘package’ to them before they would fill out the documentation for the state. Each time I called to confirm what they wanted I was given the runaround. I was given paperwork for a trial loan which said in so many words that even if I made payments as agree, they could sell my house out from under me. All I needed them to do is fill out one block confirming what I owed! As for State Emergency Relief, I am still waiting to hear from them and its been 2 weeks. I got tired of hearing horror stories about people who put their faith in the mortgage company and filed bankruptcy to finally get some peace of mind.
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