Homeowners frustrated that public isn't bailing them out

Markor

From Homeowners say no help from lenders:

Mark Gagliardi has sought for months to rework his loan with Countrywide on his Oakley home, but to no avail.

Gagliardi and his wife bought the house in 2006 for $768,500 and obtained two Countrywide loans totaling $691,000. Homes nearby now sell for $410,000 to $450,000.

"There is no way to refinance because there is no value left in the house," Gagliardi said. "We are hanging on by the skin of our teeth. We admit our part in this. But Congress did its job. The president did his job. Now the banks are dragging their feet."

Gagliardi wants a 30-year fixed-rate loan based on his home's current value. He has gotten nowhere with Countrywide, despite placing many calls to the firm.

"Countrywide is not proactive," Gagliardi said. "No calls, no follow-ups. When I call, I get put on ignore."

He admits his part, but wants no responsibility for it. Why not go for it all while he's at it, ask Countrywide to forgive the loan?

SeattleMoose

This "entitlement mentality" is disgusting. A long grinding depression is the only way to burn this "retire by 30 without doing any work" out of the population. People need to learn what it means to live within their means, to save money to buy the things they want, and the meaning of hard work. This country (and other western countries) has become "fat Rome".

And for all these whiners who stupidly bought at the top of the bubble (thinking the continued rise in prices was "in the bag")......let them eat cake.

Massive stupidity requires a massive lesson. And one is coming....Obama's first year is gonna be brutal.

The teetering tower of rot that is the western financial system is leaning over so far that gravity can no longer be defied.

The parasite has inflicted a mortal wound on its host.

Bob_Funk

If people want the banks to write off the difference on what they signed the loan for & what their house is now worth, I guess that would be fair if the banks could re-write everyone's loan.

I can see the letter from the bank now,

Dear Mr. Smith,

as you know you purchased your home in 1993 for $89,000, we lent you the money & you lived within your means & you have never taken any equity out of your house.

Now even in this market your house is now worth $325,000 & since we loaned you the money to buy this home your loan has been modified & for the remainder of the loan your payments will reflect the current value of your home, not the original amount we loaned you.

And remember, when your home value finally starts to increase your loan will be modified again.

Thank you

Large bank in trouble

Markor

Yeah, it should work both ways. I doubt Gagliardi would agree!

I agree it's disgusting, SeattleMoose. I wouldn't be disgusted with the loan being modified if public money wasn't involved. Then it would be just between Gagliardi and Countrywide.

FreedomLover

OF course everyone should be bailed out for their stupid mistakes. I thought one would learn their lessons by age of 16 or so.

jon

"loan has been modified & for the remainder of the loan your payments will reflect the current value of your home, not the original amount we loaned you."

They will do that soon. But the complacent media will call it "eliminating the unfair capital gains exclusion on houses" and the proceeds from that tax will pay off the banking bailout debt.