Posted on 02/15/2009 1:22:06 PM PST by Lorianne
The Obama administration this week will announce a "good, solid" plan with the goal of stemming mortgage foreclosures and putting a floor under falling real estate prices, a senior White House aide said on Sunday.
Speaking on "Fox News Sunday," senior adviser David Axelrod said the plan that President Barack Obama plans to announce on Wednesday will aim to stem foreclosures, provide immediate help to homeowners who are "right on the edge" of foreclosure, and ultimately help in "raising home values that have been plummeting."
Mr. Obama plans to unveil his housing plan during a visit to Phoenix. As part of his swing through western states, he is set to stop in Denver Tuesday, when he will sign the $787 billion economic-stimulus plan just passed by Congress.
Mr. Axelrod provided few details of the housing plan, but said a government investment of $50 billion to $100 billion to fund foreclosure prevention "is obviously a necessary part." He promised that the plan would contain "a lot of aspects."
One likely element of the plan would reduce Americans' payments on troubled mortgages, people familiar with the discussions said late last week, possibly through a cut in the interest rate, the costs of which would be shared by the government and mortgage servicers. Government officials would make the reduction available to people who are at risk of defaulting. A loan-modification program at government-backed Fannie Mae and Freddie Mac currently calls for holding monthly housing-related payments to 38% of pretax income. The new formula is likely to be as low as about 31%, according to some people.
(Excerpt) Read more at online.wsj.com ...
Man, I just LOVE all this transparency!
One likely element of the plan would reduce Americans' payments on troubled mortgages, people familiar with the discussions said late last week, possibly through a cut in the interest rate, the costs of which would be shared by the government and mortgage servicers.
Translation: One likely element of the plan would reduce Americans' deadbeats payments on troubled mortgages ... possibly through a cut in the interest rate, the costs of which would be shared by the government taxpayers and mortgage servicers future mortage holders.
The plan: Free houses. That’ll work......
Simple as pie.
But ACORN isn't racist, and you are a racist if you say they are.
Yah, what’s a few more hundred Billion anyway. When this year’s deficit will hit around 5 Trillion. It’s not our money in the first place. </s
Free homes for the poor, or let’s say very lost cost homes for the poor. That will help property values. /s
My translation is shorter: If you’re in the party, you’re guaranteed a house.
if it’s solid it’s only because it’s FULL of the same stuff as the author
That the young people supposedly supporting Obama will no longer be able to afford homes (presuming they can get jobs) goes without saying ~ when Obama is done with them they’ll be living in cardboard boxes on the streets.
A floor under falling housing prices, what economically illiterate boobery.
Let the prices fall to market clearing levels, it’s the ONLY workable solution.
Pick up an econ textbook, you idiots, or here’s an idea, actually LISTEN to your econ advisers.
"I think if you put most of our major banks under a stress test" as the administration plans, "they're going to fail," he said. "I would not take off the idea of nationalizing the banks."
But Sen. Charles Schumer (D., N.Y.) said government takeover is not a good idea. "I would not be for nationalizing," he said. "I think government's not good at making these decisions as to who gets loans and how this happens."
Things are getting stranger every day. - Tom
“One likely element of the plan would reduce Americans’ payments on troubled mortgages, ....”
That’s a novel description. Can’t pay your mortgage? The mortgage is troubled.
We are in the financial crisis we are in because far too many idiots were paying $600,000 for $300,000 houses that they could afford only with gimmicks that lowered their monthly payments below what it would cost them to actually pay interest PLUS principal.
Helping these idiots avoid foreclosure and artificially propping up the inflated Bubble price of housing only helps the idiots and prices the responsible buyers out of the housing market.
Those idiots that bought houses for far more than they could afford to pay deserve to lose what they pretended to buy and house prices should be returned to true market value as defined as what the owner can afford monthly interest PLUS principal payments on without going broke.
“One likely element of the plan would reduce Americans’ payments on troubled mortgages”
Troubled mortgages = Adjustable Rate Mortgages issued to greedy, financially incompetent idiots by greedy, financially incompetent banks.
I have a better idea: How about giving a break to the people with excellent credit ratings. You know, the ones who pay their bills on time, pay their credit card bill every month instead of racking up thousands of dollars in finance charges, don’t ask for hand-outs and basically have a lot more common sense than all the idiots in Washington. Because WE ARE THE ONES WHO ALWAYS END UP FOOTING THE BILL for all the deadbeats out there.
We didn’t manage to save the the auto companies by injecting cash into their cash flow and he won’t save the realestate market by subsidizing the losers..he will just create more losers.
The idea that the govt can prop up inflated home values is just what got us in this problem. He will just change the method of proping them up.
So he’s saying I SHOULDN’T have paid my mortgage? That’s it, no more mortgage payments for me. Apparently you get more if you don’t pay.
Maybe people will worry when we reach a gazillion bajillion.
Yeah, but you only count for one vote...
Obama has no “solid plan” for ANYTHING!
He mistakes rhetoric for policy, which could only be true if he were elected DICTATOR.
...which, unfortunately, many of his supporters, especially in the media, seem to believe.
So the government will own and provide all housing. I can now afford that estate on the gulf coast. What office of the government do I send the payment book. I know the Kennedy's take care of the heating and air.
As solid as his health care plan, his gun control plan, his free speech plan.
God help us all.
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