Unlucky or Unwise

Chadi Moussa lives in a house valued at more than $1 million in Dublin, Calif., in the desirable East Bay area. Unfortunately, he owes nearly twice that much on his mortgage. Mr. Moussa, who runs a used luxury car dealership, is by any definition a troubled homeowner.

But when he looked at President Obama’s housing rescue plan, he saw nothing for him because his mortgage was too high.

“You give $25 billion to a bank, at least they should help people stay in their homes,” Mr. Moussa said. “But once you get to big loans, nobody’s doing anything about it.”

Administration officials say the plan, the details of which were released Wednesday, is intended to help as many homeowners as possible and could prevent three million to four million foreclosures through loan modifications and help four million to five million through low-cost refinancing.

But it does little for borrowers who have had significant jolts to their income, or who owe more than their home’s value on loans that exceed $729,750. In boom-and-bust housing markets like Florida, Las Vegas, Phoenix or California, where values have fallen 30 percent to 40 percent, the plan leaves many in homes they cannot afford — some because they borrowed recklessly, others because they were buffeted by the market swings.

About 20 percent of the country’s 50 million mortgage holders owe more than 105 percent of their house’s value, and so do not qualify for refinancing under the plan, according to J.P. Morgan.





http://www.nytimes.com/2009/03/05/us/05mortgage.html?_r=1&th&emc=th

Poor baby... should have thought about how he was going to pay for that house before he signed for that loan. I don't feel a bit sorry for him or any of his kind.

Well, that's a beautiful house but he should pay for it or leave.

This is what gets me, he claims he COULD afford it IF the bank would lower his rate to 4% and lower his monthly note.

HELLO ??? You did not plan ahead ??? He looks like he was living big.

Yesterday True TV was showing foreclosure proceedings in court.

It amazes me how many people financed everything they made to buy a house. Not just an affordable home, a big ass home. Did they not figure in the increases when buying a bigger home ??

If 1/2 of what you take home goes to pay a house note, you cannot get a house.

Not only that but the people that took out 2 or 3 mortgages. Oh My.

And spent the money on fun stuff. Yeah, they need help.

Ben lives in the Phoenix area, moved into a brand new house with the option to buy after a year. Thank GOD he didn't buy it straight away! $160,000 when he moved in Jan 2008, today it's selling for 90,000.

He just moved to Coolidge, older home asking $90,000. They are in negotiations, supposed to be appraised this month. It's an older home, 1960's built but in a very nice neighborhood. One block from the elem school and vey private, no HOA.

He has a great job, just promoted to supervisor. I'll try to post a pic of his "RODEO" he did last Saturday. Funny stuff there! It is heavy equipement operators running an obstacle course. Wish I could have seen it.

his eyes were bigger than his stomach.

All for show live high now and screw the consequences.


I cant feel too sorry for this guy or others in his position.

PLAN AHEAD Look at the long view of things not just what is front of you right now