Biden-Obama Position: Courts Should Have Power to Reset Mortgage Principal

transcript of Biden/Palin debate - cnn | 10/3/08 | Biden

[Rhinoceros]

Biden -"Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe."

[Toymaker]

Apparently they introduced this outrageous plan on the stump last week. I could not believe it. Take what ObamaBiden says as TRUTH, I believe they are more honest than the average politician. take what they say as the truth of what they want to do. LISTEN TO THEM! If you want the government to control: What you Own What you Owe What you Make and What you Say Then, by all means,vote those Marxist Bastards into control!

[Joan Kerrey]

the economy would just roll right on off the cliff.
________________________________________
We’re seeing right now that that won’t happen. Government will just take over again and the courts would be forced to adjust your rates as well and then adjust the next group’s rates, the next, the next and I’m not sure what happens when all the people own homes free of principal and interest. Hmmmmmm, I guess we’ll have to rethink this.
Hey, I got it! Maybe if the government owned the homes and the people sent in monthly fees in order to live in the homes that might work. It wouldn’t be a tax but just an occupancy fee. We could probably lower taxes with this plan, including property taxes.

[Rhinoceros]

Heh, Rush is talking about this thing right now. Go get’em Rush! And my bad on the spelling. Ya learn something new every day :D

[daltec]

Hi guys I hate to say this, but this *was* in the House bailout bill last week (Section 110, Assistance to Homeowners). It may still be in the (much larger) Senate bill - I haven’t had a chance to go over it all yet. Read it and weep:

” (1) IN GENERAL. To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets secured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.
(2) MODIFICATIONS. In the case of a residential mortgage loan, modifications made under paragraph (1) may include —
(A) reduction in interest rates;
(B) reduction of loan principal; and
(C) other similar modifications.”

Right there, plain for all to see. If it’s still in the Senate bill, then they have passed it, the House will pass it, the President will sign it, and it will be LAW.

By the way, it gets better. Do you know who the “Federal Property Manager” mentioned in Paragraph 1 is? HINT: their names are Freddie and Fannie (Section 110 A 1 ).

[TheFourthMagi]

So basically Biden and Obama want to destroy the free market completely and replace it with a judicial oligarchy, just like the left has already done with social issues.

[FreeReign]

I am a Mortgage Banker, if these MORONS acheive this BS, investors in MBS WILL requrie higher interst rates to protect their invesment, the result would be HIGHER MORTGAGE RATES

Naw.

Just send the mess on to Freddie and Fannie. Bury the risk in some security bundle. 10 years from now, the taxpayers will bail it all out again.

[Scotswife]

OK. I’m not very experienced at posting threads - hope I followed all the right rules.

http://www.freerepublic.com/focus/f-news/2097000/posts

[Patriotic1]

These two loons (Obamaloon and Bidenloon) cannot possibly be this stupid, are they?

I'll assume that was a rhetorical question....

[Patriotic1]

The kicker is that the existence of binding contracts is crucial to a free and prosperous society. These people scare me beyond all belief.

[keepitreal]

There are number of home sellers who carry the paper on the house they sell. Oftentimes, older folks will do this to get their house sold quickly, figuring that the loan payments made to them will be a nice stream of income for retirement. Often, they are carrying the house because the buyer may not have the best of credit, but has a good job. And, as a result, the sellers can get a better price because they are willing to carry. Cramdown in bankruptcy, forcing the principal to be far less, would be basically stealing from these retirees. But, I guess, taking from the old to help the young Obama-voting thieves is perfectly okay in this world.

Liberal AARP...do you have a position on this?

[plainspeaker]

You need to get hold of the nice folks at ACORN, and they will give your mortgage holder what-for and literally force him to give you whatever you want. It is done all the time in Chicago, and Osama was an instructor for these activists.

Yes, I watched the debate, and heard that proposal on letting judges decide how much you still owe. Amazing. I think it would generate a lot of countersuits by the mortgage holders. Someone will get rich representing these people.....lawyers.

[highlander_UW]

Yes, I watched the debate, and heard that proposal on letting judges decide how much you still owe. Amazing. I think it would generate a lot of countersuits by the mortgage holders. Someone will get rich representing these people.....lawyers.

The effect such a policy would have is that no bank would risk financial loss by giving out mortgages. Why should any private business run the risk that at any point a court would determine that they will have to write off a significant portion of any real estate loan? They will simply get out of the mortgage business. Now perhaps this is all part of the democrat's plan to get rid of private ownership, or maybe they're just too stupid to understand the consequences of their actions. Either way, America will probably not survive an Obama presidency.