TELL BARACK HUSSEIN OBAMA THAT HE IS FULL OF IT!
Posted on 07/10/2009 6:04:24 PM PDT by Starman417
There's no doubt about it... as the St. Pete Times PolitiFact says, Obama's promise to create a foreclosure prevention fund to the tune of $75 billion minimal, with the Making Homes Affordable Program is in the "promises kept" column.
What the PolitiFact tracking system doesn't discuss if it spending the taxpayers money has any any effect on the foreclosure trend. And the fact it, reality dictates it not only hasn't prevented... or even slowed... foreclosures, but they've been on the rise since the O'Inaugural festivities.... despite still relatively low interest rates.
Well... congratulations, Obama. You kept your promise, put us further in debt, and time has proven this is not working, nor is likely to work in the predictable future. Allow me to 'splain...
According the RealtyTrac trends (graphics which I am prohibited to reproduce here for copyright restrictions that I will honor), the two highest months for foreclosures in 2008 were August and December, where the numbers were just slightly above 300,000 each month. All other months were below.
In February, Obama's first month in office, they were up, but still under the 300K mark.
Enter Obama and his $75 billion Making Homes Affordable Program... a real loser of an idea that I posted on back in mid February. This brainstrom was not a creature of legislation, but of the omnipotent Treasury department, and utilizes mostly TARP funds approved by Congress in that fiasco passed last fall. Tho in retrospect, a $750 bil bailout, and appropriations of only half that prior to Obama's assumption of power, is starting to look like a blue light special in price.
For more details on this HASP plan - aka Making Homes Affordable and Homeowners Stability Program - check my above linked Feb post. But I'll summarize. Your mortgage can neither be too much, and cannot be too "toxic" (an asset upsidedown in value). Additionally, you are subject to strict restrictions on your employment income, and income to debt ratios. In other words, if you've lost your job, don't count on a remodification under the Obama plan, or any other plan. Under HASP, the government buys down the rates to no more than 38% of the distressed borrower's income, and the banks get to eat the rest by buying the rates down to 31%.
Any of you ever buy down your purchase or refi mortgage rates in a real estate transaction? If you have, you'll know that a reduction of .0125% in the rate usually costs 1% of your loan value. It is not a cheap proposition.
To make it even more absurd, this HASP/MHA plan was no different than an ARM.... it was a teaser rate that reset after five years. Needless to say, if those that modified out of their loans into this, and didn't default on the new payments (as more than half of them have) for the five years, they were again in a pickle five years down the road... still saddled with an asset that may or may not appreciate to the toxic loan value.
Obama's plan hit the media with great fanfare all thru February... his plan to "prevent foreclosures" it was. The details were not announced until early March. And thus far, it's been not only ineffective, but utter chaos.
March and April foreclosures were just below the 350K mark, with a slight dip in May due to under 5% rates for a brief period, but still well over 300K in foreclosures monthly. BTW, the rates rose almost a full percentage point in the three weeks that followed, and new mortgages and refis dropped 30%.
In mid april, a month following Obama's Treasury plan, the foreclosure stats released by RealtyTrac showed in increase by 9% nationally.
RealtyTrac’s latest foreclosure statistics are now available, and once again the news isn’t very good. According to the U.S. Foreclosure Market Report for the first quarter of 2009, foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 803,489 properties, which sadly translates into a 9 percent increase from the previous quarter and an increase of nearly 24 percent from the same period in 2008. The bottom line: One in every 159 U.S. homes received a foreclosure filing during the months of January, February, and March.
But wait, you want to say... Obama's program didn't get implemented until early March. Give it time, you say. Fair 'nuff. It's now July... three and a half months after the spending spree debacle to "prevent foreclosures" was implemented. How we doing now, bucko?
(Excerpt) Read more at floppingaces.net ...
So now intent rather than actual fact counts as a promise kept. When it comes to Obama anyway.
From what I am reading the forclosures are just getting ready to work up a head of steam. Many more on the horizon.
Obama's promise to create a foreclosure prevention fund to the tune of $75 billion minimal, with the Making Homes Affordable Program is in the "promises kept" column. What the PolitiFact tracking system doesn't discuss if it spending the taxpayers money has any any effect on the foreclosure trend. And the fact it, reality dictates it not only hasn't prevented... or even slowed... foreclosures, but they've been on the rise since the O'Inaugural festivities.... despite still relatively low interest rates. Well... congratulations, Obama. You kept your promise, put us further in debt, and time has proven this is not working, nor is likely to work in the predictable future.
Intent rather than actual fact is how liberals rate all their policies. Since they CARE, it doesn't matter to them that most of their policies are failures.
If the foreclosure rate in April was 9%, that means Pres--ent Ubama SAVED 91% of mortgages.
Vice-Idiot Joe Biden explained how this formula works the other day when he pointed out that any job that is not lost is counted as a job that he and Ubama saved.
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