Housing plan aims to help 9M, but leaves out many

AP ^ | 4 Mar 09 | ALAN ZIBEL

[SkyPilot]

The Obama administration's housing plan is intended to help 9 million struggling homeowners avoid foreclosure, but it leaves out tens of thousands of borrowers in the most battered housing markets who won't qualify because their homes have lost too much value.

The program detailed Wednesday offers refinanced mortgages or modified loans with lower monthly payments. Yet its refinancing plan is limited to borrowers who owe up to 5 percent more than their home's current value. Loan modifications, supported by $75 billion in federal funding, are unlikely for severely "underwater" borrowers.

In the California cities of Stockton, Modesto and Merced, more than one out of every 10 homeowners with a mortgage won't qualify for any help because they owe more than 50 percent more than their house's current value, according to data from real-estate Web site Zillow.com.

The plan doesn't help homeowners in states "that are at the epicenter of the housing debacle," said Greg McBride, a senior financial analyst at Bankrate.com.

[SkyPilot]

I found it so fitting that on the same page where Comcast has this news story, this is the ad on the upper left hand portion of the screen. Sorry I can make them dance with Flash Player here.

Obama Sign Stimulus Bill
$133,000 Mortgage for Under $679 a Month!

[scooby321]

Worthless bill and it will help no one.

[SunkenCiv]

it leaves out tens of thousands of borrowers in the most battered housing markets who won't qualify because their homes have lost too much value.

[dawn53]

The financing they’re proposing for 105% of the market value is unbelievably idiotic.

That kind of financing puts them “upside down” from the get go, and with the market continuing to fall, they’re going to be more underwater in a few months. Will 0 come to the rescue again when they’re “upside down” or when the rate changes in 5 years?

Cheaper rates, and unconventional mortgages are what got us into this mess in the first place, so what’s the government doing offering cheaper rates that will reset in five years and offering unconventional financing (105%).

All this while they create animosity and discontent among the other homeowners, or renters who have “played by the rules.”

[EVO X]

Cheaper rates, and unconventional mortgages are what got us into this mess in the first place, so what’s the government doing offering cheaper rates that will reset in five years and offering unconventional financing (105%).

If I read the article correctly, to be eligible one needs to have some sort of financial hardship like losing a job. LOL..

[American in Israel]

The article is in error, everybody is in the Stimulus Bill, just most of use are footing the bill, very few will see a profit.

There is not one man woman or child that is not going to be in these bills.

Except perhaps congress. They don’t seem to consider paying taxes manditory for themselves these days.

[bgill]

Once again, why the heck is it my responsibility to take food out of my children’s mouths to give to a bunch of losers?

[cookcounty]

"All this while they create animosity and discontent among the other homeowners, or renters who have “played by the rules.”

Creating animosity and discontent is the Aklinsky Way to political victory (Read the Book!). Unfortunately for Mr. Obama, once in power, continuing on that path is the easiest way to get Carterized. And he has no Plan B.

[ding_dong_daddy_from_dumas]

Sign from one of the "Tea Parties:"