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.”

“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.’”

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

http://www.latimes.com/business/la-fi-mortgage1sep01,1,6649270,full.story

 

[Trooper_IHB]

"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"

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

 

[oc-conservative_IHB]

"if you HELOC'd yourself into trouble, you are out of luck. "

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?

 

[Trooper_IHB]

"landed in trouble ONLY when......"

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.