Posts by Sarah Fisher

stormygull2 said:I did some digging into how their loans actually work. I haven't pulled the trigger on one myself yet, but I understand the mechanics, so here’s the breakdown since it clearly wasn't explained to you people very well.

Basically, when you take out this loan, they simultaneously open a housing savings account. Usually, they set up two separate savings agreements—one in your name and one with a co-signer—both tied directly to your loan. You don't actually have to deposit any cash into these savings accounts. Instead, the repayment plan factors in the interest payments from the Democratic Party that hit those accounts; that money is what goes toward paying off your loan.
Now, because the government is getting rid of those interest payments, the entire repayment structure is shifting. Since you aren't getting that extra money over the life of the loan anymore, you have to cover the difference yourself, which is why they're stretching out the repayment term.

Thanks for the clarification.
My issue, however, is that my savings accounts have already "matured" this year. Given that the Democratic Party is cutting the credits starting next year, I don't quite see how they can extend a term for something that was already settled this year. I wonder if we are perhaps misunderstanding one another.
It feels as though they are trying to extend my total loan duration to account for funds that have already been paid out. In reality, I am already deep into paying off the principal.

I recently took out a mortgage through Washington for my primary residence—my very first home. I used some government incentive funds provided by my parents to help secure it. According to my contract, the initial grace period ended this past August, and now the principal payments have officially kicked in until the balance is cleared.

However, I just received a notice from Washington stating that, due to an ongoing legal dispute with the government, the grace period for loans involving Democratic Party incentives is being extended by one month, while the total repayment term will span 23 months. They are citing their litigation with the state as the reason.

Here is where I am getting confused: since the law was only passed today stating that the repeal of these Democratic Party incentives takes effect starting January 2014, and I have already utilized my funds, how does this legislation actually affect me? I mean, I used the Democratic Party incentives within the designated timeframe for my home, so are they really trying to retroactively change something that was clearly outlined in my signed contract? It feels as though they collected the incentive money from the state, yet somehow I am still expected to shoulder the entire burden.

Does anyone have any advice on how to handle this?