This is what struggling homeowners are up against:...

http://www.npr.org/2012/01/30/145995636/freddie-mac-betting-against-struggling-homeowners?ft=1&f=1001

Please follow the link and listen...

doesnt sound right....
I wouldnt be surprised if there was a "derivative" type of financial instrument that does profit from directly from ANY investment going bad....(several times over)

money is always made in the wall street casino...

It's a disgrace. There are two families here in this development who bought at the height of the market, are paying 1600 a month and not behind, but both husbands were laid off and they could save 500 per month if they could refinance, but they don't qualify. Why is someone who is not missing payments not a good bet for a lesser mtg. Because they want the money, all of it. I am glad that the States Attornies General are looking into this.

Hi MaryKay
So glad you're back. As you know , I live in South Jersey. There is a program called "The New Jersey Home Keeper Program"
It's for homeowners who are having a difficult time making their mortgage payments because they lost there jobs or because the employment income has been reduced. Please check it out it may be helpful for your friend or for anyone on this forum that is in this situation. I have applied for the program (You can apply online) My appointment is on March the 15th. The program is funded through a grant from the United States Treasury

Please pass this info to anyone you think it may help..

Here is the link
http://www.njhomekeeper.gov/

This is an excerpt:

Are you having difficulty making your mortgage payment because you have lost your job or because your employment income has been reduced? Are you looking for work but need short-term assistance to help you keep your home until you can find it? Or are you making your mortgage payments without a problem now but have arrearages due to a recent period of unemployment or underemployment? Help may be available through New Jersey HomeKeeper.

New Jersey HomeKeeper provides financial assistance to New Jersey homeowners who have a track record of making their mortgage payments on time but are now at risk of losing their homes to foreclosure as direct result of unemployment or underemployment. The assistance is in the form of a 0% interest rate, deferred-payment second mortgage loan. The loan proceeds may be used to cover arrearages and/or a portion of the homeowner’s monthly mortgage payment, including property taxes, property insurance, and mortgage insurance. Homeowners may be eligible for up to $48,000 in assistance for a period of up to 24 months.

New Jersey HomeKeeper is funded through a federal grant from the United States Treasury’s Hardest Hit Fund awarded to States most impacted by unemployment and underemployment.

Click in the "Eligibility" tab above and see if you might be eligible for the program. A link to the online application will be available there!

Thank you spring, I will call her now. I am not sure for her if it's too late. As of yesterday, she was "granted" the ability by the bank to go short sale rather than foreclosure. Apparently, for a bit, the bank was working with her, about 6 months or so, then they just sent the paperwork on the foreclosure. She wasn't alone, about 15 in the area had this happen. I don't know all the details and wouldn't try to comment either way, it just makes me so damn sad. Thanks for this information. I will keep my fingers crossed for you. Please let me know how you make out. Prayers are ongoing, hope you know that.

Thanks MaryKay,
You and your family have been in my prayers. So good to have you bacK

Spring9 wrote:
New Jersey HomeKeeper provides financial assistance to New Jersey homeowners who have a track record of making their mortgage payments on time but are now at risk of losing their homes to foreclosure as direct result of unemployment or underemployment. The assistance is in the form of a 0% interest rate, deferred-payment second mortgage loan. The loan proceeds may be used to cover arrearages and/or a portion of the homeowner’s monthly mortgage payment, including property taxes, property insurance, and mortgage insurance. Homeowners may be eligible for up to $48,000 in assistance for a period of up to 24 months.

So in other words, if you have income, then you had better keep up with the payments , with interest. You are liable for taxes and insurance.

If not, the US taxpayer will subsidize your mortgage and taxes.

Makes me want to quit work.