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Some Americans, Underwater but Ineligible (for housing bailout), Are Riled Up
Wall Street Journal ^ | February 19, 2009 | Nick Timiraos and Michael M. Phillips

Posted on 02/18/2009 7:11:00 PM PST by reaganaut1

President Barack Obama's new foreclosure-prevention plan is already sparking outrage from some Americans who won't qualify for federal aid -- and from those who resent having to foot the bill for those who do.

"What do you expect from the government?" said David Newton, 46 years old, proprietor of DJN Management LLC, which owns 232 rental apartments in the Atlanta area. "The government isn't out there to help people who obey the law and follow the rules."

Mr. Obama "told everybody, 'I'm going to spread wealth around,' and that's what he's going to do," Mr. Newton said.

...

The housing measures have also upset a range of homeowners who say they shouldn't have to subsidize those who bought more than they could afford. "We've lived a conservative life," said Tim O'Brien, 61, a retired CPA from Los Angeles. "We've paid our house off and saved our money, so you kind of find yourself on this issue not agreeing with everything."

Mr. O'Brien believes that Mr. Obama's approach will prove inflationary -- a hardship for those, like him, on fixed incomes. "It's kind of like they've chosen the bloc they want to support with the packages and we're going to end up paying for a lot of it through the losses we've suffered in the market and through inflation over the next 10-15 years," he said as he worked on a project restoring an 80-year-old, two-masted wooden schooner.

...

Brenda Gilchrist said she feels like she is being punished twice, first by watching foreclosures depress the value of her three-bedroom condominium in Santa Rosa, Calif., and now by subsidizing borrowers who bought more than they could afford.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Culture/Society
KEYWORDS: bailout; bho44; foreclosures; housingbailout; mortgage

1 posted on 02/18/2009 7:11:00 PM PST by reaganaut1
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To: reaganaut1

Those folks sum it up quite nicely.


2 posted on 02/18/2009 7:12:27 PM PST by LibFreeOrDie (Obama promised a gold mine, but he will give us the shaft.)
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To: reaganaut1

How’s that “hope” and “change” thing working out so far?


3 posted on 02/18/2009 7:12:37 PM PST by FlingWingFlyer (Have You Punched A Democrat Today? - Do it for the children.)
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To: reaganaut1

Everybody who turned down one of these ridiculous loans on the basis of reality and/or morality is pi$$ed as well. This is not just about income, many people with insufficient income chose to not burden themselves and are, to quote this president, “screwed” for doing so.


4 posted on 02/18/2009 7:15:17 PM PST by allmost
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To: reaganaut1
It would take quite a chunk of income to write that much off.

US Economic Stimulus Bill Nears Final Vote (It's still $900 billion! GOP time to filibuster)
voa ^ | 2/5/2009 | voa

Excerpt:
"The final vote is looming after senators unanimously approved an amendment Wednesday to provide a $15,000 tax credit for homebuyers.

The provision, sponsored by Republican Senator Johnny Isakson, would add $19 billion to Mr. Obama's $900 billion plan.
"


5 posted on 02/18/2009 7:15:56 PM PST by familyop (As painful as the global laxative might be, maybe our "one world" needs a good cleaning.)
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To: reaganaut1
"It's kind of like they've chosen the bloc they want to support with the packages...

I bet we can all name the blocs Hussain plans to support, can't we?

6 posted on 02/18/2009 7:21:32 PM PST by raybbr (It's going to get a lot worse now that the anchor babies are voting!)
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To: raybbr

anyone who voted for bambi better not utter a PEEP about this. Heres your hope n change. Now get on the RIGHT team! Nothing trickles UP!!!!!!!


7 posted on 02/18/2009 7:25:35 PM PST by wombtotomb (since its "above his paygrade", why can't we err on the side of caution about when life begins?)
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To: raybbr

The only saving grace is that the “folk” who came out in droves to vote Obama into office do not turn out for mid-term elections. Also, now that a black president has been elected, don’t expect the same numbers to turn out in 2012 (if there is a 2012).

I can hear them now, “Chump. Get your own damned vote. What have you done for me?”


8 posted on 02/18/2009 7:25:54 PM PST by johnnycap
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To: reaganaut1
Brenda Gilchrist said she feels like she is being punished twice, first by watching foreclosures depress the value of her three-bedroom condominium in Santa Rosa, Calif.,

I'm willing to bet that Santa Rosa CA voted nearly 100% for the O, including dear Brenda.

L

9 posted on 02/18/2009 7:27:22 PM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: reaganaut1

Has anybody studied this horror to find out if illegal aliens are eligible for it?
If one illegal gets one cent of this tax money there had better be an outcry from every homeowner in this country and then find the names of every financial institution that actually loaned money to these invaders.
I remember reading that a substantial part of the home loan problem in California was caused by banks loaning money to buy homes to illegals that have no right to be in this country in the first place-does anyone now if this is true?


10 posted on 02/18/2009 7:28:28 PM PST by Larry381 ("in the final instance civilization is always saved by a platoon of soldiers" Oswald Spengler)
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To: Larry381

I haven’t studied it but ‘yes’ to your inquiry is all but certain. If illegals got the loans in the first place, which many did, they are eligible.


11 posted on 02/18/2009 7:32:36 PM PST by allmost
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To: reaganaut1

i have to rent. i couldn’t afford nor would i have taken one of those loans. i knew that i couldn’t afford it.

i don’t get a tax deduction for renting, nor will i get “subsidized” by myself and other taxpayers.

this has gone beyond ridiculous.

from the first bailout, the vote should have been NO.

play by the rules, you get screwed.


12 posted on 02/18/2009 7:32:57 PM PST by machogirl (not one of Rush's top-ten gal names)
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To: reaganaut1

We’re getting hit from so many directions, my head is spinning. Angry doesn’t begin to describe it.


13 posted on 02/18/2009 7:35:52 PM PST by Think free or die
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I could be real wong, but...

I think this latest Obomination is going to hit some rough seas quick.

Barry’s Bridge To Far.


14 posted on 02/18/2009 7:46:09 PM PST by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: reaganaut1

Housing prices spiraled to dizzying heights before crashing. Unfortunately, millions of houses per year were sold and financed at these inflated values and it wasn’t just marginal buyers purchasing them. Millions are upside down, but able to make their payments.

Now we have millions of owners who can’t sell or refinance their homes. They can’t move or rent their homes out for what their payments are. They are stuck for many years to come.

This isn’t healthy for the overall economy, but I don’t know what the solution is. As for bailing out the folks who overbought and are now in trouble, this mortgage bailout plan is not a good solution. The gov’t and the banks are going to lower their payments, but they too will be tied to negative equity. It’s kinda like taking out a $40K loan on a $20K car. it just doesn’t make sense.

Negative equity is the biggest problem we have. Not marginal buyers. We have far too large an overstock of homes for prices to recover.

All this economic mayhem was caused by the gov’t to start with.


15 posted on 02/18/2009 7:47:32 PM PST by umgud (I'm really happy I wasn't aborted)
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To: Think free or die
We’re getting hit from so many directions, my head is spinning. Angry doesn’t begin to describe it.

Me too. I am having to pray to control my anger.

16 posted on 02/18/2009 7:50:47 PM PST by HerrBlucher
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To: reaganaut1
Good.

Apparently, even the Obamanistas are starting to experience some outrage from the constant trillions going to this or that.

Let the anarchy begin.

17 posted on 02/18/2009 7:58:31 PM PST by elkfersupper (Member of the Original Defiant Class)
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To: reaganaut1
Brenda Gilchrist said she feels like she is being punished twice, first by watching foreclosures depress the value of her three-bedroom condominium in Santa Rosa, Calif., and now by subsidizing borrowers who bought more than they could afford.

Oh, c'mon, Brenda. You aren't just "feeling" it. You are damn well being punished twice for leading the life of a responsible, frugal, hard working citizen who didn't get in over your head. Just like me and everybody else on FR. We are being victimized by our government. Hey, as victims, aren't we eligible for some of the free pie?

18 posted on 02/18/2009 8:06:27 PM PST by ProtectOurFreedom
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To: Larry381
I remember reading that a substantial part of the home loan problem in California was caused by banks loaning money to buy homes to illegals that have no right to be in this country in the first place-does anyone now if this is true?

Arizona, too. My ex-MIL had a house across the street that was being used by coyotes to house dozens of illegals. They were busted when one of them stabbed another.

19 posted on 02/18/2009 8:10:56 PM PST by conservative cat (America, you have been PWNED!)
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To: reaganaut1

I don’t understand the big deal about being under water. That can happen quite easily. So you put $5000 down on a $200,000 home. A house is a long term investment, but say in a slow year it falls 5%. Not a big deal. But the house is now worth $190,000 and the mortgage is $195,000. Underwater. So what?


20 posted on 02/19/2009 12:44:29 PM PST by Sam Gamgee (May God have mercy upon my enemies, because I won't. - Patton)
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