Hillary speaks out on foreclosure... she is being remarkably perceptive here!

[Jengles 0]

they've already trying to do that, a friend of mine was offered this loan modification. we'll treat your mortgage as a 40 year and not a 30 year with a ballon payment due in 30 years . In the meantime she gets to make payments like it is a 40 year loan but their not refinancing the loan. This is just pushing the risk out 30 years.

[Mr. Big Dog 10,747]

they've already trying to do that, a friend of mine was offered this loan modification. we'll treat your mortgage as a 40 year and not a 30 year with a ballon payment due in 30 years . In the meantime she gets to make payments like it is a 40 year loan but their not refinancing the loan. This is just pushing the risk out 30 years.

Which is good enough seeing that most people will have sold the home within such time frame which, assuming that between now and then the real estate market recovers which it most likely will, would ensure proper pay-off of the loan rather than the otherwise almost certain default and foreclosure.

[GeordieWife 1]

they've already trying to do that, a friend of mine was offered this loan modification. we'll treat your mortgage as a 40 year and not a 30 year with a ballon payment due in 30 years . In the meantime she gets to make payments like it is a 40 year loan but their not refinancing the loan. This is just pushing the risk out 30 years.

Which is good enough seeing that most people will have sold the home within such time frame which, assuming that between now and then the real estate market recovers which it most likely will, would ensure proper pay-off of the loan rather than the otherwise almost certain default and foreclosure.

Also people could make extra principle payments which if you look at an amortization (sp?) table would help tremendously in the first few years of a loan...provided there's no major penalty to do that.

[Marc and Olga 0]

they've already trying to do that, a friend of mine was offered this loan modification. we'll treat your mortgage as a 40 year and not a 30 year with a ballon payment due in 30 years . In the meantime she gets to make payments like it is a 40 year loan but their not refinancing the loan. This is just pushing the risk out 30 years.

Which is good enough seeing that most people will have sold the home within such time frame which, assuming that between now and then the real estate market recovers which it most likely will, would ensure proper pay-off of the loan rather than the otherwise almost certain default and foreclosure.

Also people could make extra principle payments which if you look at an amortization (sp?) table would help tremendously in the first few years of a loan...provided there's no major penalty to do that.

I think that is PART of the problem with the motgage industry that got us where we are today, they offered minimum payments lower then the interest payments so the extra interest has ballooned their payments out of the range the borrowers expected to pay and with the lower payments they were already stretching themselves thin.

We are getting a 30 year fixed for our house and I plan on paying only slightly more then minimum each month...but that slightly more is ALL principle

Edited December 6, 2007 by Marc and Olga