2009 Mar 3rd

Toll Brothers Tries to Make Good in Bad Times?

By Lori Turoff

Toll Offering Mortgage Protection Plan to Buyers

“Make the market worry-free”.  That’s quite a task these days.  Yet Toll is offering a buyers protection plan that provides:

These benefits are supposedly applicable to conventional, FHA and VA loans.  It is certainly better than nothing!  Now if only they would do something about the potholes on Hudson Street.

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  1. An Bui, DocuSign Blogger

    Lori,

    Thanks for sharing the info – do you happen to know what two years of job loss protection looks like? Regardless, I think it’s a great offer from Toll.

    Best,
    An

  2. Tiger

    Thanks Lori. There was an article in Metro this morning that said some developers are actually offering to buy back units in five years at 110% of the contract price! That’s interesting:

    http://www.metro.us/us/article/2009/03/04/05/0034-82/index.xml

    I wonder what’s the catch though? maybe once you sign the agreement, then you are required to sell it to them in five years at 110% of the price; this way if the actual market is higher than 10% in five years, then they get their properties for under 2014 market value.

  3. Lori Turoff

    I have no further details right now. I’ll try to learn more and post what I learn.

  4. Ron

    The catch is that if the market remains crappy for 5 years, those developers wont be around to honor the buyback…

  5. JC

    Lori, not sure if you are going to blog about the new mortgage plans that came out today but it seems for owners occupants that show imminent financial hardship mortgages will be modified so total payments reflect 31% of gross income. Total = principle, mortgage, taxes, condo fees, insurance.

    I’m positive many folks can take advantage of this. Even those that put 20% down but have overstated their income on a no doc loan could now show there real income and have there mortgage adjusted down so payments reflect 31%.

    Well, they need to show financial hardship such has a lost job or decrease in wages. But that really doesnt sound so hard to do. Hmmm, what about those folks that overstated income on these no doc loans and now could very easily say they received a pay cut in 2009, wouldnt banks grant the adjustments?

    I am not behind on my mortgage but did take a paycut (hopefully temporary) in 2009, would I qualify for this if I now pay 35% of my gross income to my total condo payments? (includes taxes, condo fees, and insurance)

  6. dkzzzz

    Let’s us not get all hopping mad from this news. These mortgage modifications are not mandatory they are left to the discretion of the lending institutions. Which in plain speak means: Banks are not obliged to modify your mortgage if they don’t want.

  7. homeboken

    dkzzzz is correct. Also, one should realize that if you take advantage of this mortgage “cram-down” the lender will essentially report it as insolvency and your credit will be worthless.

    So yes, accepting the cram-down keeps you in your house, and it will keep you in that house forever since no other bank will likely ever lend to you again.

  8. Lori Turoff

    Maybe staying in your house forever is not always such a bad thing ???

  9. homeboken

    Lori – Excellent point. Perhaps that is where we need to get back to. An interesting thought…If you could never leave your current location, what would you do to improve it? I think you would see people much more involved in local politics and community.

  10. dkzzzz

    I second that.
    Americans should stop being nomads and finally pick a place and settle for God’s sake:)

  11. Tiger

    I **FULLY** agree. I’m a big believer in long term ownership. Market up or down, I’m an old fashioned guy and I think real estate is a great way to build wealth. I hope I can afford to keep my condo even when I’m ready to move (hopefully to better and bigger places).

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