Posted on 09/01/2007 1:22:29 AM PDT by Caipirabob
President Bush on Friday pledged to help homeowners behind on their payments as a way to stem the nation's deepening mortgage crisis.
The move is particularly significant in South Florida, where thousands of people face foreclosure after stretching to buy properties they couldn't afford.
Bush said he will let the Federal Housing Administration, which insures mortgages for low- and middle-income residents, guarantee loans for delinquent borrowers. That will allow them to avoid foreclosure and refinance at more favorable interest rates.
Those eligible must meet specific criteria, including a history of having made on-time payments before getting into trouble with risky loans.
"This is a huge deal," said Jessica Cecere, president of the Consumer Credit Counseling Service in West Palm Beach. "What people need is the opportunity to refinance at a decent rate."
(Excerpt) Read more at sun-sentinel.com ...
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Borrowers would be able to take out no-money-down mortgages insured by the Federal Housing Administration under a proposal by the housing department. Right now, FHA-insured loans are limited to a maximum of 97 percent of the home's price, meaning that homeowners have to come up with a 3 percent down payment.
FHA-insured, zero-down loans won't be available until October at the earliest, because the proposal will be included in the Department of Housing and Urban Development's fiscal 2005 budget proposal. The fiscal year begins Oct. 1. Allowing zero-down, FHA-insured mortgages would require congressional approval.
Under the proposal, home buyers not only would be able to get FHA-insured loans with no money down, but they could roll some closing costs into the loan. The maximum loan size, then, would be 103 percent of the home's price.
***
So basically, the government is assuming the loan with our tax dollars.
Thanks for the McMansion, boys!
If President Bush had used half his brain instead of relying on sniveling knee-bent ankle biters for advice he would have launched a major initiative for a new Federal tax relief program.
I keep trying to tell myself he's way better than John Kerry and infinitely more competent and sane than Al Gore (you know, the guy who flunked out of divinity school and now goes door-to-door with his message of doom.)
Really, I think he's just given up after so many years of personal attacks. It's not a good enough reason to fail in this manner. He'll be the major reason and cause of defeat for Republicans in 2008 if he keeps it up.
When Republicans start acting like Socialists, people will elect real socialists: Democrats.
And when you're making Democrats (who have an 18% approval rating) look good, you're circling the commode, amigo.
If someone can post information to refute my disgust, I welcome you and thank you in advance, sincerely. My stomach is turning and I could use some cheering up.
I mean, yeah, they qualify the loan program as follows:
"Those eligible must meet specific criteria, including a history of having made on-time payments before getting into trouble with risky loans."
But we're talking the Federal government here. Not the shrapest knives in the drawer. It's really making me sick...
GRRRRRRRR....
Sorry... Had to say it...
No comment...
I am angered beyond belief over this. I do not want a DIME of the taxes I pay to cover the mortgage of some idiot who refied himself into debt, or some idiot who thought flipping houses was a good idea.
I have been priced out of a house for a long time thanks to the idiocy and insanity going on the last couple of years, and now with the loan requirements getting tougher, it’ll be even longer even if prices drop. I’m now locked out of home ownership thanks to the unmitigated greed in the housing/mortgage industry, and I am offended and insulted and PISSED OFF my taxes will help these greedy idiots!
The Fed has no #@#$ing business bailing these people out. NONE. They bought more mortgage than they could afford, they believed a bunch of weasels telling them “Oh, just refi/sell in a year!”, nobody’s arm was twisted when it came time to sign the mortgage papers. NOBODY’S.
I’ve been made fun of for over two years, because I saw the insanity early. “Real estate always goes up!” “Buy now or be priced out forever!” “It’s FREE money!”
/spit
Now *I* get to pay for the party?
#$@# you!
ByDesign wrote: “I have been priced out of a house for a long time thanks to the idiocy and insanity going on the last couple of years.”
Yep. The easy credit drove up housing prices. Now it looks like you’re going to pay more to help guarantee loans for people who overextended themselves and/or refuse to pay what they agreed to pay. Ain’t socialism grand?
Well, it looks like when this crash gains momentum, it just got deeper.
Bush should stay the F out of it and let those who over extended pay the price for their foolishness, rather than dragging everyone else down with them.
Monday is going to be interesting.
‘stretching to buy properties they couldn’t afford.’
Just wanted to further enhance your morning.
” Monday is going to be interesting. “
The next 6-8 months are going to be interesting, as the secondary (and tertiary) effects of the Fed’s short-sighted, politically expedient machinations become apparent.....
And if Congress (in the dictionary under ‘short-sighted, politically expedient’) gets into the ‘fixing’ business, it could go from ‘interesting’ to ‘scary’ in a heartbeat....
All you can do is wait. This is all going to come tumbling down all the harder now, because rather than letting the market sort itself out and take a sudden but short adjustment, Bush just bought them more time to get even more hopelessly behind. The layoffs are already starting because of buying in the USA coming to a screeching halt.
It’s only a matter of time now. If this last quarter report, which seems impossible NOT to show yet another drop, we will officially have a recession on our hands, which will most likely become a full blown depression come the first quarter next year.
I think we will have a full blown depression by the end of the first quarter next year. GM just announced huge layoffs in their truck division in Canucky land, and that is in an economy that is doing better than ours. That shows how our economy is starting to have a ripple effect beyond our borders. Bad time of year for that to happen.
The only thing that could slow this down is if oil prices tumble, which isn’t likely.
My wife & I paid off our 30 year mortgage which started in 1987 in 14 years. Youngest daughter bought her own house in 2004 at the age of 24. Oldest daughter & her husband came back to the midwest to escape the pricing insanity of the Maryland market. Do we all get rebates for being responsible? Who says crime doesn’t pay!
‘stretching to buy properties they couldn’t afford.’
“Just wanted to further enhance your morning.”
Oh, I totally understand that aspect, Westlander, thanks anyway. :)
Seriously, though, I am beyond tired of tax dollars being used as a solution to every problem. This business of bailing out mortgage holders is NOT THE FED’S JOB. It’s as simple as that.
The Fed should be going after mortgage fraud and predatory lending practices. Oh, no, we can’t do that, they get too much donation cash from that industry, silly me.
/spit
I’d leave the country, but there’s nowhere else to go now. I’m sick of it all. Our entire economy and country has been strip mined and laid bare by the corporations and bankers, and now we get to pay for it.
Something’s gotta give.
Something’s gotta give
It already gave.
” This business of bailing out mortgage holders is “
Take a peek at the ‘man behind the curtain’ — the mortgage holders (the VIC-tims, in today’s parlance) ain’t the real target of this bail-out....
The real intended beneficiaries are the lenders who can’t stand being stuck with all of that increasingly worthless paper — or, given the trend, an awful lot of property that would have to be sold at a loss......
Indeed. Bears repeating as artificially propping up a market is incredibly dangerous.
Next thing you know there will be retroactive bail outs of dot-com losses.
However I don't think that alone would cause a depression, more of an extended malaise not unlike what the Japanese have gone through. Death by a thousand cuts.
Buy silver, and not the paper stuff either. coins, troy ounces (if you can get it) Once the over selling in silver gets exposed, It should do well.
” Buy silver, and not the paper stuff either. “
Trade-goods are looking more attractive, these days —
The coming depression is going to be different - and worse - than the 30’s... Different conditions in the country make it certain that the fall will be longer and harder than that little hiccup.....
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