I Was Watching The News

[Milly]

this evening, trying to get my head around Obama's proposed mortgage bailout plan, when a horrible thought struck me.

Let's say that Jane Frugal took out a straight mortgage on a $100K home five years ago. She had great credit and a good job, and a small amount of money as a down payment. Her bank was delighted to lend her the money and all was well until - -

we fast forward five years. Jane was laid off from her job last September and she hasn't found a new one, the value of her home has dropped by 25% (so she now has an upside-down mortgage) and the funds in her 401K from when she was working also lost a bundle.

Not wanting to pay the penalty on early withdrawal of any 401K funds, she soldiers on with her (soon to be terminated) unemployment benefits and selling this and that on EBay for extra cash.

Due to her situation, she has fallen behind in her bills, although she's managed to keep her utilities on and was doing okay with the small CC balances she had until they upped her rates to 34%.

So - here's my question. She is eligible for a re-finance under the Obama plan, but the very situation that makes her eligible also means that her credit rating is now in the 600 range. How is this gonna' work if a decent credit score is required for a re-finance???

Isn't this kind of catch 22? You can be re-financed because you don't have the capital but you won't qualify for a re-finance because you didn't have the capital to keep your credit score pristine.

You just can't make this stuff up.

[CoCo]

YES she will benifite under the new HELP system. I fear that those that took little risk, have things paid for ,are going to be screwed( BIG TIME) and left as though you will feel like a RAPE vic. I would personaly think if I had a JOB that was over 50k I would be cut as soon as the company has a right to do it.

I want some of that money I pay in every yr, I take care of all persons as a NURSE , I will send a letter off the my rep with hopes he rethinks this prop. There are many jobs to be had just get in the mindset you WILL NOT be rich from working such jobs, but it's better than BEGGING and taking from the POT.