Posted on 11/05/2009 9:07:01 AM PST by Zeddicus
Edited on 11/05/2009 9:08:30 AM PST by Admin Moderator. [history]
Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.
The government-controlled company, through its new "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.
(Excerpt) Read more at abcnews.go.com ...
This will be the Free Housing for Democrat Voters Program. Does anyone think that rent money will be collected from these unemployed deadbeats?
Government controlled rental properties? Isn’t that what section 8 housing is already?
Does anyone here see this as the first step in the abolition of private property rights?
COOKTHEBOOKS.COM
We no need no steenkin private property owners. This is the United States of Lenin.
So I guess this is going to be the next target for this Marxist government’s takeover of everything privately-owned: Now we have a coerced government takeover of private real estate.
If people can’t afford a $1000 per month mortgage, how will they afford $1000 per month rent, UNLESS the rent will be significantly less and the gov’t takes a loss on the houses..
Is my logic flawed or am I missing something?
Related
http://www.freerepublic.com/focus/f-news/2379195/posts
I called them Obama Hoods lol someone else said Obamvilles
“Does anyone here see this as the first step in the abolition of private property rights?”
Uh, yes we do.
For the average citizen, private property does not exist anyway.
>>Does anyone here see this as the first step in the abolition of private property rights?<<
You crack me up. When the monthly property taxes on an average home run into the hundreds of dollars, private property rights have already been abolished. And that slippery slope was hit before our parents were born.
Nobody owns real estate in the US. You rent it from the government.
The list, ping
There’s a promo too— you get one free month’s rent if you let Barney Fwank install a franchise of his gay male prostitution ring in your home.
Good.
Now what?
The private life is dead.
Banks before Obama: “Non-performing Assets Division”
Banks under Obama “ Federal Equity Rental Division”
P O N G
Or that evictions for nonpayment or property damage will be processed efficiently--if ever? Who will pay taxes and insurance and be responsible for keeping the dwelling to some minimum standard? You guessed it... Aunt Fannie and Uncle Sam.
THE ANT AND THE GRASSHOPPER: A Modern Adaptation
Classic Version
The ant works hard in the withering heat all summer long, building his house and laying up supplies for the winter. The grasshopper thinks he’s a fool and laughs and dances and plays the summer away. Come winter, the ant is warm and well fed. The grasshopper has no food or shelter, so he dies out in the cold.
The Modern Version
The ant works hard in the withering heat all summer long, building his house and laying up supplies for the winter. The grasshopper thinks he’s a fool and laughs and dances and plays the summer away. Come winter, the shivering grasshopper calls a press conference and demands to know why the ant should be allowed to be warm and well fed while others are cold and starving.
CBS, NBC and ABC show up to provide pictures of the shivering grasshopper next to a video of the ant in his comfortable home with a table filled with food. “America” is stunned by the sharp contrast. How can this be, that in a country of such wealth this poor grasshopper is allowed to suffer so?
Kermit the frog appears on Oprah with the grasshopper, and everybody cries when they sing “It’s Not Easy Being Green.”
Bill and Hillary Clinton make a special guest appearance on the CBS Evening News to tell a concerned Dan Rather that they will do everything in their power for the grasshopper, who has been denied the prosperity he deserves by those who benefited unfairly during the Reagan summers or, as Bill refers to that period, as the “Temperatures of the 80’s.”
Jesse Jackson stages a demonstration in front of the ant’s house where news stations film the group singing “We Shall Overcome.” Jesse then has the group kneel down to God for the grasshopper’s sake.
Al Gore exclaims in an interview with Peter Jennings that the ant has gotten rich off the back of the grasshopper, and calls for an immediate tax hike on the ant to make him pay his “fair share.”
Finally, the EEOC drafts the “Economic Equity and Anti-Ant Act,” retroactive to the beginning of the summer. The ant is fined for failing to hire a proportionate number of “Green” bugs and, having nothing left to pay his retroactive taxes, his home is confiscated by the government.
Hillary gets her old law firm to represent the grasshopper in a defamation suit against the ant. The case is tried before a panel of federal judges that Bill appointed from a list of single-parent welfare recipients who can only hear cases on Thursdays between 1:30 and 3:00 p.m. when there are no talk shows scheduled. The ant loses the case.
The story ends as we see the grasshopper finishing up the last bits of the ant’s food while the government house he is in, which just happens to be the ant’s old house, crumbles around him due to neglect. The ant has disappeared in the snow. And on TV, which the grasshopper bought by selling most of the ant’s food, they are showing Bill Clinton standing before a wildly applauding group of Democrats announcing that a new era of “fairness” has dawned in America. The grasshopper is found dead in a drug-related incident and the house, now abandoned, is taken over by a gang of spiders who terrorize the once peaceful, neighborhood.
God Bless America!
If they could not afford their mortgage - then by lowering the rent to 31% Fannie Mae and Freddie Mac are hiding HUGE losses by this sham program.
Why would they pay rent when they can live in the house for free for a couple three years?
You rent it from the government?
Come on now, don’t use such hyperbole. Paying taxes is pretty bad as it is but taxes are not rent. Taxes are theivery. A person pays rent to use something.
When the owner of a rental property dies, the rental property doesn’t just revert to the government.
I agree with you in principle that the government needs to be squished.
But this action is a new and bolder step, as I see it.
It will be stolen from the decent honest hard working taxpayer by thugs Dodd and Frank.
No, free rent for Marxist proles is the plan.
The other facet is it allows Fannie and Freddie to maintain the fictitious value of the house, and not write it down, which adds fuel to the economic collapse of housing and lending for housing.
I had thought that this was what is going to come last year.
The housing market implosion HAD to have had an end game.
Government owned housing, wonderful. /s
And how long will it take for the government to own ALL the housing, I wonder. I feel sick.
I honestly don’t know what we can do at this very moment.
“The other facet is it allows Fannie and Freddie to maintain the fictitious value of the house, and not write it down, which adds fuel to the economic collapse of housing and lending for housing. “
That is the MAIN facet.
Just more punishment for those of us who are fiscally responsible as we will end up paying for this
If they can’t make their house payment, then how are they going to pay rent?
>>But this action is a new and bolder step, as I see it.<<
Absolutely it is! I am just reminded of the story that ends with the punchline “You should have stopped me at the dinner roll”.
http://www.liveleak.com/view?i=735_1247791729
We are living in interesting times. WWII interesting. And we’re still in the third inning. Wait’ll next year.
That's the whole point: they avoid having to book the losses, while gaining deeds to property which was previously privately-held, along with a source of revenue.
This has NOTHING to do with HELPING Americans - it is about ENSLAVING us.
In our area, renting a house would have this advantage. We’re in Florida, insurance rates are ridiculous, as are property taxes. So I’d say most folks, by renting, would be reducing their payment by a considerable amount (if they were in Florida.)
So, the question I have is, who is now responsble for the maintenance?
Or is ignoring that fundamental yet another piece of “hope and change?”
Then they can apply for free Obama money for those so hard 'hit' and unemployed that they can't pay their rent.
Riots will follow if the check is late.
Well, the renters would, in theory, not have to pay:
- property taxes
- changes in mortgage payment due to loan resets, interest rate changes, etc.
- repairs on the property
But for all of that, the central point in the housing crisis is this: bankers gave out loans to people who are bad credit risks. ie, they had low FICO scores. How does one get a low FICO score?
By not paying the bills.
So no, the rent isn’t going to get paid on a lot of these properties.
I hope people in some of these neighborhoods are going to be ready to take the government to court when the tenants allow the properties to deteriorate and the appraisal value of housing in the neighborhood goes down as a result.
This is called rigging the books....They’ll have assets and income and the loss won’t show.
Egypt had seven rich years, and everyone paid their taxes, filling up the store houses of the Pharaoh, and then Egypt had seven poor years, allowing the Pharaoh to use the wealth he collected to extort all the property from the taxpayers, making them his serfs. Times change, but the game stays the same.
Sure it will. Remember when that lady was gushing on election night that Obama was going to pay for her house? And the folks in Detroit lining up for the ‘free’ stimulus money? Obama is going to take it out of his ‘stash’ and spread it around. The only problem is his ‘stash’ is our tax dollars.
>>If they can’t make their house payment, then how are they going to pay rent?<<
It’s a “fun with numbers” thing. I rented a five bedroom house for several years for $1,600 a month. If I had bought it, my payments for that period would have been approximately $3,800 and the house would have lost approximately $120,000 in value.
This is a VERY desperate move by Fannie and will not end well, no matter how you slice it. It is merely putting off the inevitable, and raising the stakes in the process.
That’s the issue I have with it.
IN THEORY, I’d be OK with renting them out assuming they paid...but you point out why it won’t work...it would HAVE to be heavily subsidized...
WHERE ARE THE DAMN HANDCUFFS? (Fraudie)
"...This has exactly nothing to do with helping "homeowners." It is entirely about Fannie not having to recognize the written-down value of these houses - that is, allowing them to hold the "mark" on the loan at it's original value, rather than recognize the loss..."
National Urban League and Wells Fargo Launch National Initiative to Address Pressing Needs in the African American Community
Last update: 11/5/2009 12:26:00 PM
Three-Year Partnership to Begin With Focus on Sustainable Housing and Community Stabilization
NEW YORK, Nov 05, 2009 (BUSINESS WIRE) — The National Urban League announced today that it has entered a three-year, multi-million dollar partnership with Wells Fargo to address challenges within the African American community, starting with a focus on sustainable housing and community stabilization.
The partnership will be launched tonight during the National Urban League’s Equal Opportunity Day dinner in New York. John Stumpf, president and CEO of Wells Fargo, is chairing the benefit event.
During its first year, the multi-faceted relationship will include grants to selected National Urban League affiliates for foreclosure counseling , technical assistance for foreclosure prevention programs, staff training on foreclosure counseling and a significant presence at National Urban League events — including its annual conference. Wells Fargo’s Hands on Banking(R) financial education curriculum — which includes a focus on credit management—also will be an integral part of the campaign.
“This partnership complements the National Urban League’s outreach efforts to help homeowners in distress to remain in their homes and ultimately build viable communities,” said Marc Morial, president and CEO of the National Urban League. “The opportunity to pursue and preserve homeownership is a core component of the Urban League’s Opportunity Compact, and is deeply embedded in our Economic Empowerment Agenda.”
The three-year partnership builds on an initiative announced earlier this year between the National Urban League and Wells Fargo to co-sponsor a new edition of The Foreclosure Workbook: The Complete Guide to Understanding Foreclosure and Saving Your Home. The workbook, written by foreclosure author Carla Douglin, was distributed free-of-charge to at-risk consumers across the nation. A reprinting of this workbook will be part of the effort the two organizations will undertake over the next 12 months.
“Wells Fargo’s vision has long been to help our customers succeed financially by helping them achieve and sustain homeownership,” said Stumpf. “We believe in doing what is right for our customers, and that includes working with them when they encounter financial challenges or other hardships that make it difficult for them to afford their homes.”
Earlier this year, Wells Fargo introduced Leading the Way Home(R), a multi-faceted initiative to stabilize housing, advance homeownership and revitalize neighborhoods in cities hit hard by foreclosure. The new partnership also will include joint activities to tackle these issues.
The Urban League assists more than 400,000 people a year to secure homeownership maintain good credit and obtain monetary savings.
“Our partnership with the National Urban League is another important step in Wells Fargo’s continued efforts to better serve our diverse communities in which we live and work,” said Stumpf. “We want to satisfy our customers’ financial needs, and this relationship will help us continue to do just that.”
About National Urban League
Established in 1910, The National Urban League is the nation’s oldest and largest community-based movement devoted to empowering African Americans to enter the economic and social mainstream. Today, the National Urban League, headquartered in New York City, spearheads the non-partisan efforts of its local affiliates. There are over 100 local affiliates of the National Urban League located in 35 states and the District of Columbia providing direct services to more than two million people nationwide through programs, advocacy and research. Please visit us at .
About Wells Fargo
Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.
SOURCE: Wells Fargo & Company
The renter won’t be able to pay the rent and will apply for housing assistance. The rent will be paid for by taxpayers.
Let’s see.... month to month lease extensions after a year... that will require thousands of government jobs to administer.
I would say there is going to be a significant reduction in payment. You have homes in CA, FL, NV, and AZ that have had large drops in value so you have a homeowner with a $500K mortgage paying say $2600 a month on a property now worth $250K. In the current market the same property can be rented for say $1300 a month. Fannie instead of foreclosing and taking say a $250K immedaite loss loses instead $1K a month in the hope that property values will increase in the future.
Also aren’t the laws on evictions very difficult to enforce? So yes, these people will live free in the homes for up to years into the future.
mortgage: $1000/month
gov’t rent to democrat voter: $500/month
gov’t tax increase to republican voter: 3%
88% of all taxes are paid by the top 10% of earners... of which, a large percentage are republican
once they do this, they will assure themselves voters while also undermining the property values of everyone else
Am I getting this right? The individual bought the house, but couldn’t make the payments. So the government assumes the house and allows the individual to pay rent. I guess if the person can’t make the rent payment, then they can apply for assistance? So tax dollars would pay their rent? I live in a 900 square foot wood frame home because that’s what we can afford and pay taxes to help pay for someone else to live in their dream home? I could cry.
FEMA. (I bet you think I'm kidding)
Doesn’t the owner of the property still have to pay for the insurance and property taxes? Where do they get this money? I would think they would include it in the rent amount charged, so that they can cover their expenses. Just guessin’, though.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.