Posted on 02/22/2009 7:06:25 PM PST by tobyhill
The Obama administration's efforts to help struggling homeowners will aid "responsible" borrowers, not deadbeats or speculators, Housing Secretary Shaun Donovan said Sunday.
President Barack Obama announced the plan Wednesday, saying it will help up to 9 million people keep their homes in a housing market ravaged by foreclosures. But critics, including several leading Republicans and some commentators, said the $75 billion proposal will unfairly help some people at the expense of others.
White House spokesman Robert Gibbs acknowledged Friday that some people who made "bad decisions" might end up getting help under the proposal. But Donovan, Obama's secretary of housing and urban development, told CNN's "State of the Union" on Sunday that "there are no 'flippers,' investor-owners or scammers that are eligible for this program."
"We're going check everybody's income when they come into this program. We're going to make sure that people are paying their bills. And more than anything, we're targeting the folks who are playing by the rules," Donovan said.
(Excerpt) Read more at cnn.com ...
Probably the same banks that were blackmailed into making bad loans by the Community Reinvestment Act and the ACORN lawsuits (litigated by Obama). Of course, you'll have to arrive with the right ethnic and racial qualifications.
I’ve said it before. The press will announce Obama has solved the foreclosure problem and never say the word “foreclosure” again.
Few in Bay Area qualify in housing rescue plan
[...]
Out of 117 metropolitan areas reviewed by Zillow, the Bay Area regions ranked at the bottom in terms of what percentage of mortgages would qualify - behind such pricey areas as Honolulu and New York, and also behind such foreclosure capitals as Stockton, Las Vegas and Florida.
"Around here, most of the market just doesn't qualify; it's going to bypass us," said James Wilcox, a professor of finance at the Haas School of Business at UC Berkeley.
The program is designed for people who are still current on their mortgage payments but have seen their home values sink, which makes it more difficult to get a regular refinance because they don't have enough equity. The administration said the plan would help 4 million to 5 million families to potentially save thousands of dollars a year on mortgage payments.
[...]
Good grief! You don't recognize Jon Heder as "Napolean Dynamite"?
Who is gonna audit you, Donovan, and what was that provision about Congress being able to tell an IG to stop their investigation?
The original mortgage holders will take back the loan and the feds will pay the loss with our SHARED tax dollars. If the homeowner can only pay $1600.00 and the payment is $2000.00, we pay the $400.00. The bank is happy.
- A Shared Effort to Reduce Monthly Payments: For a sample household with payments adding up to 43 percent of his monthly income, the lender would first be responsible for bringing down interest rates so that the borrower’s monthly mortgage payment is no more than 38 percent of his or her income. Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent. If that borrower had a $220,000 mortgage, that could mean a reduction in monthly payments by over $400.
Now this below is what got them into the problem in the first place. 5 years will hit in Obummer second term if the US is screwed that long.
That lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification. Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.
Trust me... if they start handing out piles of Federal (Chinese) moola to make mortgage payents, I’m gittin in line! I’ll just take out a mortgage, default and then whine until the munny shows up in my mailbox!
The bay area will be one of the first to come completely back. That is a positive thing.
If someone in that area has a subprime or ARM, just refinance. The interest rates are lower and BofA and others are already sending out refinancing quotes.
Countrywide has a no appraisal Fastrack Loan Program and the rate was 5.25% two months ago.
Don’t forget Chelsea Clinton who works for her mommys friends hedge fund where they make their money off of others economic failures. Precisely why Billary started the gloomy economy talk when she was campaigning.
I'll have to ask him . . . and take some ribbing about being an old fossil . . .
It’s going to be interesting to see how it unfolds, but it’s pretty clear that he’s so overmatched he could have a nervous breakdown.
In the end, the army, nor the police, are going to back him. The governors will step in before too long. The irony is Alaska may go first.
Of all the states, they’ve got the oil revenue to make a go of it alone. Palin may be president anyway, of Alaska, or the Western United States.
some people who made "bad decisions" might end up getting help
So responsible bad decision makers will get my cash. Whoopee.
Now they'll learn that bad decisions are good.
I think the GOP should advocate punishing the borrowers and lenders for fraud. If a borrower states he earns 60,000 and his IRS records show 40,000 he better have a lawyer on hand when he is called in by the fed investigators. On the other hand if the lender is willing to give him a very large loan when his salary on the application says otherwise, then the lender better have a lawyer on hand when he appears in front of a fed investigator. Note both political parties never advocated punishment for the fraudsters. I think the public would support this before they shell out taxpayers money to bail out the banks and borrowers.
The feds are investing the corrupt brokers who built fake credit histories. My guess is they are overrun w/ cases b/c this behavior was so rampant in CA, AZ, and FL
In that case "gubmint" GTF out, let Fannie Mae & Freddie MAC fall flat on their faces (or a$$'s), remove the gubmint mandated subprime mortgages to unqualified mortgage applicants, and LEAVE US ALONE YOU FRIKKIN OBOOOMBI IDIOTS!!! Let the housing market correct itself and it will baring any further stupid (aka demoRATs... but I repeat myself) actions by the big gubmint spenders.
Donovan you idiot, if you're only helping people who "play by the rules" than why are you are throwing another $75M of OUR TAXPAYER MONEY to bailout these supposed fair players. If they bought too much house and the value is now less than the mortgage balance, then SO BE IT!!! Just make your mortgage payments if that is what they are supposedly doing!!!
Oboombi commie corrupt Gubmint....JUST GTF OUT!!!
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Good question. Well actually I think you did answer your own question.......
Anyone know who will actually be helped by this?
The black slavery reparations race baiters & con artists!!!
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Actually between the porkulus boondoggle spending bill and now this deadbeat mortgage buyout, it seems that these along with other Obooombi socialist-commie programs like his Green Tax bill, his socialist health care plans, etc., that all these are really starting to galvanize strong opposition & RESISTANCE to Obooombi's plans to destroy America. In fact I am feeling more optimistic as there is starting to be a groundswell of opposition to that commie usurper pig Obooombi, that he is not used to at all. Hence his thin skinned instant reaction to any criticism of him or his fascist-commie policies.
In fact I even see that Senator Shelby is questioning the fact that Obooombi is refusing to provide evidence or a birth cerfiticate of his natural born U.S. birth along with some other Republican representatives doing the same thing. I hope we just rise up as a body of conservative, concerned patriots & citizens and throw Obooombi's skinny usurper fascist-commie a$$ out of office!!!
Affirmative action graduates don’t have a clue where reality begins and ends. Obama has been an affirmative action case since he was conceived. He can’t grasp the problems at hand and is single handedly turning us into a Cuba of the North.
Well if they are paying thier Bills what do they need the Program for?
Glad someone finally Remebers What The ONE said and I have Posted a number of times that this Stimulus is nothing but REPARATIONS and if you Dont Believe me Just Read what OBAMABI said on Meet the Press when asked if he was in Favor of reaparations,
The issue of reparations to African-Americans for the historic slave trade or Native Americans for the “invasion” by Europeans periodically has been raised. Several years ago a lawsuit was filed claiming damages for labor at a current value of $1.4 trillion.
At Renew America, Michael Gaynor also publicly wondered about Obama’s statements to a recent “Meet the Press.”
Obama said, “The biggest problem that we have in terms of race relations, I think, is dealing with the legacy of past discrimination which has resulted in extreme disparities in terms of poverty, in terms of wealth and in terms of income. Our inner cities are a legacy of what happened in the past. And the question is less assigning blame or rooting out active racism, because that’s not the reason that those inner cities are in such bad shape, but rather figuring out are we willing to make the investments to deal with that past history so we can move forward to a brighter future? And that involves investing in early childhood education, fixing the schools in those communities, being willing to work in terms of job retraining. And those are serious investments.”
Asked Gaynor, “Is ‘serious investments’ code for ‘reparations’? And how expensive and devastating would Obama’s income redistribution policy be?”
Answer 787 billion Dollars to Start ,plus interest
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