HSH’s underwater refi plan: Comments rolling inby Tim Manni
Realizing the scope of the underwater-but-can’t-refinance problem in this country and the lack of relief that has been directed to this group of borrowers, HSH published our own concept on how Washington could assist these borrowers. Since we published the article — titled “Underwater Solution: Value Gap Refinance” — on Monday, the comments have been rolling in from readers, reacting to our underwater refinance plan.
Let’s take a look at some of the reactions this article has generated from HSH’s readers so far.
Anthony from Michigan writes:
What can we do to move the Value Gap plan forward? It sounds like an excellent idea, are any current members of congress sponsoring or considering sponsorship of such a bill?
Bruce from California had this to say:
I like your idea concerning Value Gap refinancing. Perhaps I missed it in your story but I feel that especially for individuals that are just slightly above the FHA loan limits with Jumbo Loans this program would possibly allow them to qualify for a conventional loan with the low interest rates they will unfortunately miss out on.
There is a large gap when it comes to Jumbo Mortgages out there. Is this idea that you have come up with being looked at by Barney Frank or anyone in a power play position in the Federal Government?
It sure seems like a great idea to me. Thank you for the article, and the great idea!
JoAnne from Detroit said:
The Value Gap Coverage Program sounds great and would assist a number of people who need assistance with their mortgage situations. However, there are those who purchased their homes prior to 2003 and refinanced for various reasons who would not be eligible for this program. What about those “good guys”. Once again, there is no help for them. They, too, are currently “underwater” and have no way out except to walk away from their property but continue to refuse to do so.
Nada from Chicago says:
I’m one of the underwater homeowners who make timely payments and tried for 1 1/2 years with GMAC to modify my loan in vain. I can’t get help because I don’t qualify for a refi and can’t modify. I like your idea with the ‘value gap’. Please let me know if this ever comes to pass. Thanks!
Any chance of this going through? Is there any help for regular people like me who need a better situation but don’t want to default?
Ofeliya from Michigan said:
I read the article “Underwater Crisis: One Solution, Perhaps” about help to the homeowners who don’t walk away from their homes even if their mortgages are underwater. This will work for me. I am the homeowner who needs the help. I was the first home buyer in 2005. Now I’m underwater. But I think I have a very SIMPLE SOLUTION for homeowners like me. Every lender just needs lower the interest rate for any mortgage from 2003-2007 without refinancing. The same way as adjustable rates change. What is wrong with this idea?
Allan Sloan, senior editor-at-large at Fortune, wrote a column about HSH’s underwater refinance plan that was published in both Fortune and the Washington Post. Both the Fortune and Washington Post locations have received quite a bit of comments from their readers — both for and against our underwater refi concept. Be sure to check out those comments and reactions as well.
Want to share your opinion? Leave us a comment below!