Looks like the Bush bailout plan won't really apply for SoCal!

[theBigD_IHB]

“To qualify, applicants must prove that they have been making their payments and landed in trouble only when the so-called teaser rates that enticed them into their mortgages expired and the loan reset at a higher rate. The payment increase must occur between June 2005 and December 2009. The borrower must have at least 3% equity in the house and a history of sustained employment.”

<p>“The program also wouldn’t apply to mortgages larger than $362,000, ruling out many homeowners in California and other high-cost states. ‘It’s not enough,’ Peter Morici, a University of Maryland economist, said. ‘We have a lot of people whose mortgages are greater than the value of their houses, and this program won’t do anything for them.’”</p>

<p>362,000 for Southern California is not enough. I'm glad there is a limit and 362K seems correct to me!</p>

<p><a href="http://www.latimes.com/business/la-fi-mortgage1sep01,1,6649270,full.story">http://www.latimes.com/business/la-fi-mortgage1sep01,1,6649270,full.story</a> </p>

 

[Trooper_IHB]

<p><em>"and landed in trouble only when the so-called teaser rates that enticed them into their mortgages expired and the loan reset at a higher rate"</em></p>

<p>What I read from this is.... if you HELOC'd yourself into trouble, you are out of luck. </p>

<p><em></em></p>

 

[oc-conservative_IHB]

<p>"if you HELOC'd yourself into trouble, you are out of luck. "</p>

<p>I don't know about that. Net everything (ie. equity, mortgage, HELOC) you could be negative. But a HELOC isn't a mortgage so technically you could still have equity in the house and qualify for this. Or no?</p>

 

[Trooper_IHB]

<p>"landed in trouble ONLY when......"</p>

<p>I'm keying on the word ONLY. My take is if you took a HELOC out, that adds to your debt load, which may be what has pushed your over the edge so that you cannot afford all payments anymore. I dunno, just a guess.</p>