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from:msnbc.comFHA will permit lenders to give borrowers loans backed by government
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Remember, there are many out there in the market who already had FHA-backed loans before the economy tanked, and many of those loans are now underwater, too.
Crappo. Isn't this government-backing exactly the policy that allowed lenders to loosen their lending guidelines? Now, the banks are reducing their risk while increasing government risk.
Yes, rewarding failure and in so doing punishing hard work, success and restraint seems to be the mantra of this administration.
If people are underwater, but can still make their payments which would be required, then basically the American taxpayer is being asked to pay off part of their home for them.
If they're underwater and stick it out until they no longer ARE underwater, the American taxpayer will have basically GIFTED them 10% of their home's purchase price.
Nice job, Obama. Give my money, after we've busted our humps to pay off our mortgage ourselves with NO help from the government tit, to someone else just because it makes you look like you're doing something.
I can't WAIT for the Obama-mania crowd to try to defend this.
Darn it! I should have bought something even though everything was overpriced. The government would have come to my rescue.
Now, as a renter, my tax money is going to be used to help other people with their mortgages!
I didn't vote for Obama (or Bush, or Clinton) but my next vote will indeed be anti-Obama and anti-democrats, for what it's worth.
These policies are more about helping banks than helping people. They keep folks in their overpriced homes with their overpriced mortgages and thereby ensure that banks don't see a lose on the balance sheet.
It's a shell game really...
.
"The lenders will be required to forgive at least 10 percent of the original mortgage amount."
Handouts to buy votes and help keep housing prices inflated....check.
"George said investors are likely to only offer refinances to borrowers who have seen their home values plunge to the point where they owe 40 percent more than their home's current value. Those homeowners, he said, are in danger of walking away from their mortgages."
Banks protected from more people walking away.....check.
"The program is funded with $14 billion from the Obama administration's existing $75 billion mortgage assistance program."
The bill handed to the taxpayers .... check.
Obama at his finest.
Is there a future recovery clause to require repayment when the property goes back up in value and the owner sells for a profit?
I invested in a few stocks some years back and lost some money, and did not want to wait for it to recover. When am I can going to get some releif for that investment that went bad? Houses, gold, stocks, 401k's ... there are and never have been a guarantee that you will NEVER possibly lose on an investment. Where the hell does this new mentality that a house investment must never go into negative territory, even if only temporarily? ...
If this nation does not hand itself over to the Chinese in 10 years, and the housing prices recover, are these homeowners going to give back any relief they may get today?
karen-545203 --
The banks didn't hold any guns to the buyers heads but aren't the banks doing all this required paperwork prior to closing to see what the risks would be to have the loan repaid? This is one BIG reason why this whole mess happened---The banks got greedy not the common folk.
So, if you were irresponsible and took out home loans at 100% value with no money down, the govt is going to give you a 10% discount? What do I get for taking a mortgage that I can afford and putting down 20%? Let me guess---increased taxes to pay for this fiasco.
Agreed karen. I bought in 1999 and took out no equity loans, which puts me no where near "underwater".
My house just got appraised for 250% what I owe on it.
I bought a home with 20% down back in late 2005...even though the value of our house is now 30% under the loan amount, my wife and I are still making the mortgage payment because we chose to live where we are...we chose to take out the loan. No way are we going to buy into one of these loan programs...why you ask??? because we got ourselves into this and we will see ourselves getting out of it by ourselves WITHOUT the gov'ts help. Sure it will take some time, but we will have done it on our own terms and not the governments.
These stupid "programs" need to stop. We are too far in debt as a country. This is madness.
Yup, but you are suppose to get the warm fuzzy feeling that your tax dollars are helping your fellow American...You're not supposed to look too closely at this individual and that they may be in this predicament because of poor choices they made for themselves...nope your to blame (insert the target of the day here) for duping, cheating, or some how leading them astray.
The way I figure, I will continue to pay my taxes (yes they are going to go up), pay my bills on time (yup they are going to up too), obey the laws of my state and of our country....I'll get??
Honestly though, I don't want anything...I just want to keep what I have worked hard to obtain (monetarily and spiritually). Pay my fair share for my community services (police, fire, schools, trash removal, and so on)...I really wish that we only pay a federal tax for services that federal government provides per the Consitution...I'll pay a higher state and local tax, because at least I see my Alderman shopping at the same grocery store that I do. I see my local emergency services responding to others in my community that are in need. I meet with my children's teachers. I know wishful thinking.
exactly, what do those of us that have lived within our means and lived by a budget get out of this? a big goose egg. i dont see any incentive to continue to do things that make financial sense, does not seem that anyone else is.
What's less than a goose egg, todd?
Because that's in reality what we get, since we're paying taxes to support this nonsense.
karen-545203.well lets see...irresponsible...does that include the banks that createrd these loans to be sold on wall street...after they bought out congress to get the deregulation of the financial industry done ? Doers that include the bailout of the banks that received all that money form making those bad loans to start with ? After all. it was the banks that oked those same loans you and others are crying about. And it was the banks that bundled those loans together to sell to wall street. And if you will pay attention..it is the banks that got the money....If you make a bad loan and lose...is anyone from the government going to bail you out...not likely...but banks have high paid lobbyist doing their dirty work for them...you don't....the voters don't. So, guess who gets their way ?
ivan---who forced people to sign on the dotted line of those contracts? Did the banks hold a gun to their heads? If you are too stupid to read a contract, do not sign one.
The banks should not have gotten any bailouts nor should the auto industry or unemployed people (who paid into unemployment for 26 weeks but are getting nearly 2 years).
I wish we could stop all the bailouts and handouts but the Dems seem determined to try to buy the votes in November (hence this stupid plan and the 50billion in new "stimulus).
I don't believe that it is the government's province to intervene in any way with the housing market, but there are other ways to get underwater than by being irresponsible borrowers, here in Southern Nevada, anyone who purchased a house in 2007 or early 2008 has seen the value of their homes drop by 40% or more. We refinanced then to take advantage of lower interest rates and take out some cash. We are probably 20% underwater, but it is only a problem if we were planning to sell or die, neither is on our calendar.
My car is depreciating in value and I demand compensation, I bought it to drive but only because I expected it's value to increase 10 to 40% each year. I figured that the price increases were legitimate even though wage increases during the time would be flat or slight at best, I thought plenty of people would be able to afford the ridiculous price whenever I felt like selling it. Now the value is falling as if it some kind of consumer good with a purpose that becomes older and more used year after year, this is not what I wanted so obviously I must be compensated. (Sorry but the whole program is so ridiculous I can't help being uber sarcastic)
I see many others feel the same way I do but I will reiterate as well.
The whole idea of helping "underwater borrowers" is absurd. If they are making the payments, what the hell difference does it make if there is negative equity? Probably half of the cars driven today where there is a lien on the vehicle are "upside down" ... why don't we hand all these people a check for the difference too? This madness has to stop. I have an 11 year old son and I'm ashamed to realize the legacy I am leaving him due to my generation's wild spending frenzy on things that PRODUCE ABSOLUTELY NO BENEFIT to the nation in the long term.
We are literally borrowing massive amounts of money and turning right around and dumping that same money onto a raging bon fire. What the hell is wrong with this nation's leadership?
I own my home. Are they going to send me a check for 10% of what I paid?
I'd like to know the same thing. Seems unfair that I pay my bills and am responsible, however if I had been irresponsible then I'd get to write off 10% of the ORIGINAL amount of the loan. So, not only will I not get a check for 10% of what I paid for my home, I will also be paying taxes to fund this 'program'.
I am a Pastor that lives in a parsonage. . . .I don't own a home. . .imagine how I feel footing the bill for this!
I rent, so I'm looking for a policy from Obama that will refund 10% of my rent this year!
Whoo Hoo!
NO, the responsible get zilch. But, you have learned a valuable lesson here. Be stupid and greedy and maybe next time around you can be on the receiving end of these wonderful gifts. You see that's how you get ahead these days. In the mean time when you see that turd driving his/her Escalade to their McMansion you paid for, give yourself a nice pat on the back for being a generous taxpayer.
No, they'll just send you a bill, a tax if you will for paying off your mortgage. The prudent will be punished.
No, dumbell.
This just means you are in a better position to pay other peoples mortgage so they can continue living in houses they never could afford. When you no longer have a house then you can get a little sumpthin off people that still do. Maybe even a little free ObamaCare. No treatment but you will be covered.
Q:What is wrong with America?
A:The Americans.
It's government, top to bottom, left to right.
Most Americans re-elect their congress men and women. They also think the Federal Reserve is a wizardry school where people go learn to make money out of thin air, like the magician Harry Potter.
Starting to wonder if the Somalis have a more pragmatic approach to government.
How do I get my hands on some of this free money? What are the interest rates like?
The interest rates are negative for borrowers, positive for savers.
Easy! Quit your job, stop paying your mortgage, renounce your citizenship and stay illegally. The unenlightened pay your mortgage, free ObamaCare, steady stream of checks from Barrys 99 plan, piles of welfare, Obama amnesty, and you get your citizenship back. Things are really looking up.
What arer you talking about alan_static? Interest rates are at an all time low - good for borrowers, bad for savers.
Lauren, precisely. Negative interest rates meaning you get paid to take out a loan. Positive intetrest rates for savers meaning they have to pay to keep their money in the bank.
And that is what is happening now. Factoring in inflation, I would argue effective interest rates are negative for savers. Their money is worth less a year from now then when they put it in the bank.
Here we go again. Quit the bailing out of people/banks, etc. If you can't afford it, then you don't need it. People are just as responsible for their predicament as the banks are.
Make a law that the victims of the bankers (Homeowners) who had thier equity stolen by the thieves (Banks) because they wrote loans to unqualified borrowers ahould olny be required to pay interest on the appraised property value determined by the local governments which is used to figure property taxes. No instead we bail them out with taxpayer money causing a double hit in my pocket. Something is definately wrong with this picture. The banks don't want to modify home loans so lets get the federal government and out poloticians involved and make the appraised value rule a law and people will get the economy back on track and the bankers will be held accountable for stealing everyones equity.
Bullcrap, lou. No one is a "victim" unless they choose to be. Basic four function math should tell you that earning $60k will NOT support a $300k mortgage.
We shouldn't have bailed out the financial institutions, but we sure as hell should not be bailing out people that bought too much house, re-fied too many times, bought too many fancy cars to sit in the driveways of their fancy houses, etc.
10% of the purchase price of their house as a "gift" from the government. What about the REST OF US - the vast MAJORITY - who followed the rules and pay our own way? Where's OUR gift? The piece of mind that we did the right thing is worth alot, but not the $30-100k or more these people will get of OUR money.
Do you not actually pay taxes, that you're okay with this?
Nonsense! Obama lowers it to $200K, someone else pays that for you, free ObamaCare, and if working is too stressful just go on Barrys 99 plan and catch up on Oprah.
This whole problem started with the reset to a higher rate on the adjustable rate loans that the borrower could not afford. What is needed is a way for underwater mortgages to be remortgaged at prevailing rates for the full amount owed. Underwater borrowers should not get a write off because their house isn't worth what they paid. If it was worth that amount to them when they bought it, they should pay that amount now. The gov should use some of the bail out money to buy these houses from the lenders at a 5% discount and rewrite them for the full amount the borrower owes at a lower rate as long as they have a means to make the new payments. If they default on this, then foreclose immediately and use some of the discount money received to offset what the house resells for.
Being done now. Even with the mortgage amount reduce, these people are going right back into foreclosure. Couldn't afford the house to begin with and can't afford it now. The variable rate gimmick is just a different gimmick from the government gimmick.
LOL I wouldn't want the government being my mortgage company! That's insane! They would make me paint it U.N Blue or something stupid! :)
Oh great............how many more govt give aways can they come up with?
It wont help and they still will default or be underwater and it hurts people who did the right things to help people who didnt.
this country is pathetic........just another ploy to buy votes i guess
How much money do you still have? Hope to keep some Change did you?
Lets see, two more years.... I'd say at least 173 more give aways, gotta keep the sheep docile and thankful, wouldn't want them to start standing when kneeling makes them so much more controllable.
If someone is upside down on their mortgage, and is in risk of foreclosure, what good does it do to lower the principal they owe. At the end of the day, maybe they stay in their current house, but it does nothing to increase activity in the housing market.
If the end goal is to boost new home purchases, wouldn't it make sense to help people that are underwater, but are not having problems paying their current mortgage? For example, I live in a 1 BR condo with my wife and new child. We would love to purchase a new home, and are more than capable of doing so financially; however, we owe more on our condo then it is worth, so we cannot sell it. Sure, we could rent out our condo (at a monthly loss), but I don't want to be a landlord, I just want to be a homeowner!
I am sure that I am not the only homeowner in this situation. What good does it do to help people that will likely have such bad credit they will have to rent for the next 7 years anyway?!?! Help out people lower on the real estate ladder and you will likely see more activity in the housing market! Stop rewarding people for not paying the terms of their loans, and start rewarding people that are trapped in their current homes.
NO. How about everyone just play the hand they dealt THEMSELVES and lets as a country loose this bailout menality? This is where it leads - everyone starts to think they're entitled to something they are NOT entitled to.
No one MADE you make the choices you made. Deal with the consequences.
Sorry Jim, but an emphatic 'no' to your suggestion; you agreed to the terms of your mortgage and (ideally) you are now obligated to standby those terms. If you purchased your home as an investment then you should have been prepared to deal with the reality of any investment - that is, they do also go down. In which case, you must deal with the consequences. If you purchased your home with the mindset people used to have - that is, as a place to live and raise your family - then you should have no problem. Home prices will certainly return to and pass the peak prices of '06-'07; it will just take more than a couple of years.
NO MORE BAILOUTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
My job (department) was outsourced to China. Now the job I have only pays 1/2 as much. I (we) have been working since March to get help. But they said "..I'm not in eminent default.." so I do not qualify for any help. SO.. were in default now! Still no help.. Time to walk away :(
Did you tell them you were illegal and supported ObamaCare? Either could be a qualifier.
Nibor - what makes you think illegals get free government resources? Have you ever filled out an assistance form? You need a SS# to get the benefits.
Illegals never steal SS#'s do they? Wake up.
I'm so sick of hearing about this government giving away all of this money! I am a single-parent, I make $30,000 a year, I am a home owner with equity and my payments are on time, I have my daughter in a private college, I have a savings account AND invest in a retirement account, and I spend 20% of my take home pay on gasoline to get to my job. Why is it that I can do this on this salary and keep food on the table and these yoyo's can't? It drives me crazy and I'm getting really mad at our government trying to help all these people who should have never been able to qualify for a home loan.
It would appear through reading the article and trying to read between the lines that the "lenders" and/or "investors" are allowed to pick and choose whom they will offer this 10% rebate to. There are no guidelines that will insure an impartial distribution. So from where I sit I am guessing that if you are a member of a specific party with a history of voting a certain way and / or a part of a certain minority sub-class that you will be eligible for this rebate (bailout). And I am sure that the governments criteria will stipulate that only those groups will be eligible.
My wife and I were in the same situation last year. We saved and saved and saved and managed to take a big chunk out of the principle. My guess is that most "underwater" homeowners could do the same if they learned to tighten the belt. Oh good lord, I sound like a republican. NOOOOOOO!
Why would anyone do such a dumb thing?
It's way to late to keep blaming the people that bough in way over their heads. Those loans are all but gone now. It's the fall out of piss poor judgement and greed, and the thinking whats the worst that could happen, a few bad apples don't ruin the bushel. Most of these people now were just fine until the S*&T hit the fan. But, the 10% is just another tax payer bailout for the banks and nothing more! They also made a bed to lay in. Back the mortgages, as should have been done in the first place (would have been cheaper than bailing out the banks), extend the loans out further, whatever it takes to keep those people in there homes and paying their dept, but don't cut any deals with bank wile doing it. And then get our money back from the banks!
This is the government intervening in the market again. The inequities here are almost too numerous to list but lets start with the person that put down 20% vs. the one that bought the same home with just 3% down. Which one was responsible and which one was hurt. Not only is the responsible party disadvantaged but they will pay for the governments largess through higher taxes (when some of these new government loans default).Â
If the Democrats would stop trying to socialize our country the housing market might find a bottom and new owners would step in. Now we all just sit around wondering if there is some way to take advantage of the incompetence that is rewarded.Â
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Bob, exactly. The people who worked hard and saved for 20% down and who aren't underwater will foot the bill, for example, for their neighbor who put 0% down and is underwater...for the very same house.
I haven't voted democrat (or republican) since pre-1992, thankfully, but unfortunately none of my votes have amounted to a hill of beans.
I've said it before, as long as you keep bailing out those that can't afford to pay, the housing market will never come back. Costs on home in our area are still way over value and as long as the Fed keeps giving tax credits and other "help" to troubled homowners, the bottom of the market will never be reached. The only way to restart the housing market it to let those who can't afford it lose their homes and either buy a smaller place or rent. Then, when the glut of houses out there gets really big, prices will drop and people will buy again.
Also, it pisses me off that after years of responsible money managment, our reward is to watch others get out of trouble with our taxes. This market has to correct and it cannot do so as long as the government keeps the patient on life support. A true collapse of the housing market will be very painful, but it's the only way to turn things around. Once banks have tens of thousands of empty homes on their books and they start losing money because of it, they'll put the homes back on the market at firesale prices. But ONLY if they are truly left to reap the rewards of their greedy ways.
Sorry to say, but I believe that the Fed will keep bailing out banks in the guise of helping the homeowner as long as there are lobbiest to pay them off.
Your saying the banks have to willingly forego 10% of the principal? I can tell you how many banks and how many accounts they will do this WILLINGLY. It's Zero bank, zero accounts, total wasted idea as it will be just another fiasco like the 75 Billion bailout which resulted in about 5 billion being paid out because the banks are not going to cooperate. What a dumb stupid plan.
The "value" of your house is what you were willing to pay when you bought it.
I bought mine in 2002 for a fair price. The "market" value of the thing doubled by 2006. Now it's "worth" somewhat less than what I owe on it. However, to me, it's worth the same thing it was worth when I bought it. I'll simply continue making the payments on it until I own it outright. None of this nonsense going on matters one iota to me. As long as I can continue paying for it, I will. Period. I wasn't "screwed" ... and the market isn't "screwing" me now. It's my property.
-Max :)
well spoken max...unlike a house flipper or someone{banks} looking to "maximize profit" on a loss.Enjoy your home man!It is a"home" ...
That's it Max. If your still in your house and it's underwater guess what? YOUR STILL IN YOUR HOUSE!!! Do you think that people will be lining up to give money back when the value of the home goes up?
To many people used their house like an ATM. I know someone who actually took out a mortgage to go see the Eagles in the superbowl!! Guess he lost that bet twice. Now he wants a bailout. I told him he should just be happy that he can pay the mortgage and to suck it up about his home losing value.
Typically American - treating the symptoms, ignoring the causes.
The FED and bloated Fannie and Freddie giving out "free lunch"? ...I agree they caused it with a willing and/or ignorant Congress.
It sounds like almost everyone in this dicussion is saying that all the people who are in trouble with their mortgages, that it's all their own fault and have no one to blame but themselves. They should not be given any help and be left to swing in the breeze.
Some of you say "I bought within my means, I make my payments on time, Where's my handout?" Obviously you haven't lost your jobs through no fault of your own or had some other hardship that was not your doing.
Personally, I bought a house a few years ago that was within my means at the time, I put down 20%, but later lost my job due to the economic downturn, The wife left me with the mortgage and bills for an old high school flame. I used up all my savings and other resouces trying to stay afloat until I found work at a lower wage than before.
But according to all of you I'm irresponsible because I fell behind and don't deserve to helped.
I hope you all don't get in to a similar situation and then expect over people like yourselves to give a @!$%#.
similar situation man...good job and it tanked...the dominoes fell right in place.I could afford the house no problem and we had one car and two jobs,lived modestly and didn't buy every I-this and gadget -that.People talking sh!t who have not gone through this{ yet}can fu@k off...plain and simple.
And if you folks think this is the "recovery" phase...2007-2010 is the warm act...
And why should you get what amounts to $30-$100k FREE money from the government? You do understand that the market is cyclical, right, and eventually that house will gain value? When it surpasses the new artificial price set via government intervention, not only will you have enjoyed a lower payment in the meantime, but you will also gain MORE on the sale than you should have.
Millions, in fact the vast majority, of people in this country are NOT going to benefit in this way. Why should you, at our expense?
I think you should be helped, but I think even you would agree getting a job would be a bigger help to you than having ten percent taken off your mortgage.
It's just the wrong place to put the money - it's not going to improve the economy if the job situation isn't first fixed - just delay some failures.
Of course it isn't as simple as an either/or - either help with mortgages, or help with jobs - but it seems like the priorities are all out of whack. First fix income, and then the debt will take care of itself.
How is this my problem and why am I obligated to bail you out. Life is tough. Suck it up, man up, dump the house, rebuild your credit, and move on.
I will speak for myself...i lost the house,lost the job...so fuc#in what right?I did move... on ya win some ya lose some...like I said,get in my shoes and when you squirm and SHTF for you,then you can come on here and vent a little too...just for sh!ts and giggles and to get people who are still insecure with their own futures too a little nervous...fu@k,lets just rattle everyone's' illusion debt bubble cage...
Pragmatic is right...the difference now,the government REALLY can't afford it with more propped up funny money to continue the deflation spiral.The government can't fix sh!t...never have really,they only increase problems in the market with the FED screwing around with the rate ....
the end result :...hey maybe we can all discuss this sh!t in a soup kitchen?
You know what, I'm not looking for a handout, maybe just a break. I'd like not to lose everything I invested in my home, not a house, my home. No wonder this country is turning to crap, no one cares about anyone but themselves and have not a whit of compassion or courtesy.
I pay taxes too, have been paying them for many years, served my country in the military and never asked for damn thing. Suck it up and move on, how about screw you!
I see your side too man..it sucks.Those people who ACTUALLY are NOT there in it YET{hello comfy plebs...?}If you can't see the other side or at least have compassion a little ..Fu@k You...see you in the streets,cos eventually the banker scum that own your Country want it that way.
If we can all agree on one thing...we are debt based slaves to a system that threw us overboard almost 40 years ago.{don't believe me?...think of all the BS you need your SS card and number for,now turn it over and read the 1st sentence on the back}.One of MANY illusions of "safety" and "freedom we have been lied into believing.
The Only thing that will EVER change this is revolution...not voting for your favorite democrat/republican douche bag that doesn't give two sh!ts about you,and not burying your head in the sand with mindless entertainment.
eventually we will ALL have to Tyler Durden this place...
Kevin, the fact is the 50% of the workforce that actually pays taxes is subjected to the same whims and vagaries of the market. We're (and I include you in this) already holding the bag for welfare, WIC, Hud, Section 8, Medicaid, etc etc etc, PLUS need to save for our own retirement, pay our own health insurance, cover our own deductibles, pay our own property taxes, buy food, gas, clothes, etc etc etc.
When the "social safety net" starts to expand to the point it has reached, it is simply NOT affordable. Making it bigger to include people that HAVE other options is just NOT affordable. It's called trickle up poverty. The ability of those meeting their own needs without government assistance becomes more and more strained, as the costs associated increase and wages don't.
I blame business right now too, absolutely.
But I blame the government for creating a mentality in this country - and this is by no means just Obama - that the government SHOULD and more crucially CAN be a hammock to guarantee a soft landing from anything bad that happens to anyone anywhere.
It's not only unaffordable, but there are millions of us who do not WANT a government hand out, which hoistthebsflag seems to agree with that much at least.
and Pragmag... I fear the housing market hasn't even cycled close to a nominal low , or bottomed ,neither has the "returning" job market so the "even out" part or gain to a market value based on current inflation seems a far stretch..possibly decades off .Now with the rate and debt...Housing starts are in the toilet with FandF needing more cash,,,chew on this sobering chart and articles for a bit...I think you will dig it. and Prag and anyone who took my post the wrong way,I apologize for the violent rant... now here are some facts:
http://www.bloomberg.com/news/2010-08-27/banks-will-need-new-capital-to-withstand-renewed-housing-dip-whitney-says.html
http://www.reuters.com/article/idUSTRE67P30X20100902
http://www.businessinsider.com/chart-of-the-day-percent-job-losses-in-post-wwii-recessions-2010-9?utm_source=Triggermail&utm_medium=email&utm_term=Clusterstock+Chart+Of+The+Day&utm_campaign=Clusterstock_COTD_090310
Good stuff, hoist. That last one is scary stuff.
And I agree with you, we have not bottomed out. The problem is, if the government keeps artificially jacking the market we never will. They'll just reinflate the bubble again, and we've danced to that song already.
If I had one sentence to say to Obama, it would be as follows:
"PLEASE let the market work."
Pragmagatic... I couldn't agree with you more...love your last sentence,and it says it all.thanks for the reply.Glad you liked{or was horrified by it...LOL} the last link... jobs and the market are long time and long way off In my opinion if we continue the debt based path and funny money binge.
Some tough decisions that could falter any recovery either way will have to be made and soon,,,we are caught between the proverbial "rock and a hard place".I get the feeling this administration now with it's track record,will do all the wrong moves.
"Hoist"
23% of mortgages underwater...this is a group that can afford their current mortgage, are current on payments, but are stuck in their homes. illness, divorce, any family crisis, they cannot move on with their lives. banks hate short sales, so no help there.
25% of americans have sub-prime FICO scores. they won't be in the real estate market for years to come.
those two facts mean that there is no hope of an economic recovery any time soon. there simply are not enough people able to buy so real estate and construction will remain moribund.
in the past our economy has flourished because our labor force was flexible and mobile. able to respond to employment anywhere in the country. good public policy says we need this capability in our economy. anything that brings mortgages in line with current real estate values will help.
Fear not Tax Payer for this program will end up in the trash heep along with all the other help the poor individual that bought too much house, made not enough to pay the bills and lost their job.
I do not know how many loaning institutions are going to just write off money owed to it. You have to get an appraisal to prove the value has gone down enough to qualify. You still owe property taxes and insurance, which adds to the monthly payment. You will probably still be on the hook for the PMI Insurance, which also fits into your mortgage.
At the end of the day if your monthly payment drops to $900/month versus $1000/month you are still going to default and the mortgage companies know this. They are not willing to jump through hoops to help someone who is going to walk away. If they walk away will the banks be able to revalue the house based on the reduction? There is a reason so many people didn't take advantage of the last housing bailout, because it was just delaying the inevidable and really didn't help all that much.
Unfortunately, so will a great deal of our money that we don't have. Isn't going into debt without having to do a thing a wonderful concept?
I bought a home in December of 2009, but was defrauded due to undisclosed known material issues with the home (Florida=sinkhole). It's now worth about 50% of what I paid. Do I get to participate?
I bought a home in December of 2009 but was defrauded by the sellers due to undisclosed know material issues with the home (Florida=sinkhole). Do I get to particpate?