During my haircut last week, my barber told me about his mortgage deferment they took last year. He and his wife are small business owners, she does spray tanning and he is a barber, that's their income. From how he explained it, the mortgage company said, the relief will move the payments to the back end of the mortgage w/interest, they figured this would help them during their forced shutdown and went forward. Well, they got papers in the mail explaining that they basically refinanced the loan for the original loan amount they took 10 years ago, so everything they paid down for 10years was now gone. He took it to a bank and a lawyer, apparently this is what the lenders are doing to re-coup their money. If this is what all lenders are doing, the housing market is going to be worse than 08 once all the deferments come to call. Things are going to come crashing down extremely hard all across the board.
You never win when you are in debt. Crap like this is why, other than the mortgage, I don't carry any debt, and I am ahead on the mortgage.
Anyone who thought those "deferments" were put in place to help them out was foolish. It is sad that so many had to succumb to that, and the reality of it is if you couldn't get through without doing it, you will be even worse off in the next 5 to 10 years when it all finally comes crashing down, and there won't be any bailout or relief for that.
There are about 3-4 approaches used and vary by company, underwriters and servicers. Regardless of what the barber said, a few things will probably be true : -the bank/servicer sent materials explaining what was discussed (to avoid running afoul with regulators (cfpb, occ and fed) - lessons learned from 2007-8) -he likely didn't read or understand the materials or consequences -he likely signed / e signed an agreement - the options the banks proposed generally will be in their favor / they won't lose $... E.g. One option was extending the term, but interest continues to accrue - welcome to compounding interest. Sounds like this may be what he chose. Banks are one of the most regulated industries...There is no free lunch in capitalism.
Hhhmmmm. I believe I mentioned this a long time ago....that's just like all this EXTRA money people are getting for their kids and on top of unemployment....there is going to be a collective WTF coming very soon. Non of this is free and tax brackets are "changing" . Just wait
Pissed did not take a penny from the govt during covid, the PPP loans were all returned without being used, we never laid anybody off, guess who is going to foot the bill? This white guy that goes to work every day.
Yeah, the deferred child tax credit is going to be a big cluster come February through April. Guarantee a lot of them are thinking they are getting free money not knowing it is an advancement on their 2021 return. With it being a workers market imagine those that have taken a better job and moved up a bracket or the ones that just before tax filing time use a credit card for big purchases, or even worse predatory lending aka title loans and risk losing their primary mode of transportation.
Other than (ostensibly) HRC, every single person responsible for Benghazi is responsible for AFG right now. Every one.
