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FHA helps rebound buyers get back in homes
The Press of Atlantic City ^ | November 18, 2012 | Alejandro Lazo and Walter Hamilton

Posted on 11/18/2012 10:05:57 AM PST by 2ndDivisionVet

After two foreclosures and two bankruptcies, Hermes Maldonado is as surprised as anyone that he's getting a third shot at homeownership.

The 61-year-old machine operator at a plastics factory bought a $170,000 house in Moreno Valley, Calif., this summer that boasts laminate-wood floors and squeaky clean appliances. He got the four-bedroom, two-story house despite a pockmarked credit history.

The last time he owned a home, Maldonado refinanced four times and took on a second mortgage. He put a Cadillac and Mercedes-Benz C300W in the driveway and racked up about $45,000 in credit card bills and other debts. His debt-fueled lifestyle ended only when he was forced into bankruptcy.

His re-entry into homeownership three years later came courtesy of the Federal Housing Administration. The agency has become a major source of cash for so-called rebound buyers - a burgeoning crop of homeowners with past defaults who otherwise would be shut out of the market.

"After everything that happened, thank God I was able to buy another house," Maldonado said in Spanish. "Now, it's good because the interest rates are low and there are lots of homes."

The FHA, which backs nearly 8 million loans, is helping rebound buyers recapture the American dream, boosting the housing market in the process. But that's touched off a fierce debate about the financial and ethical wisdom of bankrolling borrowers who contributed to the last housing bubble - and the potential cost to taxpayers...

(Excerpt) Read more at pressofatlanticcity.com ...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: economy; housing; obama; waste
Can you believe this?
1 posted on 11/18/2012 10:06:03 AM PST by 2ndDivisionVet
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To: 2ndDivisionVet
The FHA, which backs nearly 8 million loans, is helping rebound buyers recapture the American dream...

Compliments of the American taxpayer! Because EVERYONE deserves what you've actually worked your arss off for. /s

2 posted on 11/18/2012 10:09:41 AM PST by Jane Long ("Miss me yet?" - Mitt)
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To: 2ndDivisionVet

Is Hermes illegal?


3 posted on 11/18/2012 10:13:58 AM PST by Gaffer
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To: Gaffer

Don’t you mean undocumented? [rolls eyes]


4 posted on 11/18/2012 10:15:07 AM PST by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: 2ndDivisionVet

Actually, nevermind...I already knew the answer.

I am going to surrender my 401K the last week of December and put the cash into Simmons Mattress National Bank and Trust. I’ll take the income tax hit on it now instead of next year when Obama lets the capital gains taxes go up.

That money will be gone out of the economy and disappeared. I’m then gonna change my name to Jose Eduardo Conseco Esteves and then forget how to speak English.

I’ll be in a position to start looking for some new credit cards and a brand new house, I think.


5 posted on 11/18/2012 10:20:27 AM PST by Gaffer
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To: 2ndDivisionVet

The FHA is at it again. Why help somebody that pulled all the equity out of their home and blew it on a Benz and an Escalade? He’s 61, he isn’t going to pay off this loan. Why does he need a 4 bedroom house? This is a guaranteed loser for the FHA. They must be getting financial help from the Energy Department.


6 posted on 11/18/2012 10:26:02 AM PST by USNBandit (sarcasm engaged at all times)
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To: USNBandit

Live large, declare bankruptcy, lay low for a bit, repeat. He needs the extra bedrooms for sublets and extended family. And what about those of us who the right financial thing? The best we get is a nice form letter from the bank.


7 posted on 11/18/2012 10:38:16 AM PST by opticks
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To: 2ndDivisionVet
After two foreclosures and two bankruptcies, Hermes Maldonado is as surprised as anyone that he's getting a third shot at homeownership.

The last time he owned a home, Maldonado refinanced four times and took on a second mortgage. He put a Cadillac and Mercedes-Benz C300W in the driveway and racked up about $45,000 in credit card bills and other debts. His debt-fueled lifestyle ended only when he was forced into bankruptcy.


So not only does the government practice no fiscal discipline on it's own budgets, it also encourages and rewards fiscal irresponsibility by private citizens. What's the point of living within your means, investing wisely or paying your debts when there are no consequences for not doing so? Individuals, banks, the government itself - we're living in a nation in which the government actively teaches people that fiscal responsibility is for suckers.

It's all going to end in tears when the US finally runs out of people willing to buy our debt and the high-flown BS about equality and fairness finally runs into the iron laws of second-grade arithmetic, but liberals are as resistant to learning basic arithmetic as they are to learning anything about basic economics and basic human nature.
8 posted on 11/18/2012 10:39:31 AM PST by AnotherUnixGeek
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To: 2ndDivisionVet

Is’nt this what caused the housing bubble and financial meltdown that got us into this recession?


9 posted on 11/18/2012 10:47:23 AM PST by TruthWillWin (The problem with socialism is that you eventually run out of other peoples money.)
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To: 2ndDivisionVet

You know I’d be out on the street if my mortgage check was a day late. But no, I scrimped and saved and sacrificed to pay off two homes without any help from anyone. Boy, how dumb am I.


10 posted on 11/18/2012 10:49:31 AM PST by bgill (We've passed the point of no return. Welcome to Al Amerika.)
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To: 2ndDivisionVet

Sure I believe it.

The couple behind me have been living in their house for almost a year waiting for it to be foreclosed.

She told me they haven’t made a payment in months because they are underwater on the house and they are saving the mortgage money to buy another home after this one is foreclosed.She figures it will take them until next June to get them out, and this house was in her husbands name so she will apply for the new home in her name which is debt free.

Not a bad scam.


11 posted on 11/18/2012 10:54:58 AM PST by Venturer
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To: USNBandit
This is a guaranteed loser for the FHA

No, it isn't. The FHA can't lose a thing.

You and I, on the other hand...

12 posted on 11/18/2012 10:57:52 AM PST by Darth Reardon
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To: 2ndDivisionVet; All

Did you see this?

FHA May Get Taxpayer Bailout for First Time in 78-Year History

http://www.breitbart.com/Big-Government/2012/11/17/FHA-May-Get-Taxpayer-Bailout-For-First-Time-In-78-Year-History


13 posted on 11/18/2012 10:58:43 AM PST by ColdOne (I miss my poochie... Tasha 2000~3/14/11 0bie don' t eatl my dog!)
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To: Gaffer

The Democrats win either way. If a lot of people cash out their 401k accounts and pay the tax, there is an instant windfall to the treasury. They don’t care how they get our money, they just intend to get it.


14 posted on 11/18/2012 11:07:01 AM PST by Pining_4_TX ( The state is the great fiction by which everybody seeks to live at the expense of everybody else. ~)
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To: Pining_4_TX

There’s a difference between a short-term windfall under old tax guidelines, and a more egregious tax next year.

The key is to take the principal out of the volatile market equation and empty their potential coffers.

I intend to be invisible when it comes to future taxes. For all intents and purposes, I just might be an Obama voter.


15 posted on 11/18/2012 11:10:26 AM PST by Gaffer
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To: 2ndDivisionVet

Bump for later.


16 posted on 11/18/2012 11:21:06 AM PST by magellan
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To: 2ndDivisionVet

I’ve suspected it. My suspicion is the government is buying foreclosures and “selling” them for less than they paid for them.


17 posted on 11/18/2012 11:43:16 AM PST by Terry Mross (I haven't watched the news since the election. Someone ping me if anything big happens.)
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To: 2ndDivisionVet

We know two families who lost their homes after losing their jobs and now are in small rentals with their children. But their name wasn’t Maldonado and they can speak English. Obviously, that makes a difference in how much help one gets in this country.


18 posted on 11/18/2012 12:44:43 PM PST by txrefugee
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To: 2ndDivisionVet

BTTT


19 posted on 11/18/2012 1:08:09 PM PST by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: 2ndDivisionVet

Dont you love heart-warming stories about how immigrant grifters get another chance to screw their creditors thanks to US taxpayer dollars? Another hapless victim of yankee dog predatory lending smiles all the way to the bank to pick up his new housekeys.

How do you say “Thanks, suckers” in spanish?

sniff sniff


20 posted on 11/18/2012 1:52:26 PM PST by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: opticks
This pisses me off. We moved for a job from Arkansas to Ohio a year ago. We could not sell the one in Arkansas, so we rented it out. We have not been late a single time even when our renter was several times. We are living in a house under contract to buy it. We have no other debt besides the house in Arkansas.

I have tried to get a loan twice now. First time was told that we had to show that the house in Arkansas was now an income property with stable rent income. Well after a year of having a renter in it, I went back to the bank and they now say we have to have two years of history of stable rent income. We can actually afford both mortgages but the bank says we do not qualify due to not being behind on the house in Arkansas.

21 posted on 11/18/2012 2:23:19 PM PST by Angry_White_Man_Syndrome
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To: 2ndDivisionVet

It will happen again to him.....


22 posted on 11/19/2012 11:38:13 AM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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