Comments on: WSJ: 1 in 6 Homeowners ‘Underwater’ http://blog.redfin.com/losangeles/2008/10/wsj_1_in_6_homeowners_underwater.html Redfin Los Angeles Sweet Digs Thu, 09 Feb 2012 13:33:45 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Cindy Allen http://blog.redfin.com/losangeles/2008/10/wsj_1_in_6_homeowners_underwater.html/comment-page-1#comment-18189 Cindy Allen Thu, 09 Oct 2008 00:42:55 +0000 http://blog.redfin.com/losangeles/2008/10/wsj_1_in_6_homeowners_underwater.html#comment-18189 Hi, Alice: Are you sure they're forgiving a portion of the loan in all cases? The story didn't say anything about that; in fact, the example given was just the opposite. I have heard that Hi, Alice: Are you sure they’re forgiving a portion of the loan in all cases? The story didn’t say anything about that; in fact, the example given was just the opposite. I have heard that

]]> By: Alice http://blog.redfin.com/losangeles/2008/10/wsj_1_in_6_homeowners_underwater.html/comment-page-1#comment-18181 Alice Wed, 08 Oct 2008 21:25:39 +0000 http://blog.redfin.com/losangeles/2008/10/wsj_1_in_6_homeowners_underwater.html#comment-18181 There's one piece of the puzzle missing -- they're dropping the mortgage down to 95% of current market value and then giving them 2% interest only loans for 5 years. So if someone bought a $800,000 house that was dropped down to say $500,000 based on today's market, they will be paying $834 a month for 5 years. You can't even rent a single for that here! Of course, once the loan adjusts in 5 years, they'll lose their house. So this is just a postponement. Alice There’s one piece of the puzzle missing — they’re dropping the mortgage down to 95% of current market value and then giving them 2% interest only loans for 5 years. So if someone bought a $800,000 house that was dropped down to say $500,000 based on today’s market, they will be paying $834 a month for 5 years. You can’t even rent a single for that here!

Of course, once the loan adjusts in 5 years, they’ll lose their house. So this is just a postponement.

Alice

]]>