Posted on 07/14/2009 1:08:38 PM PDT by GreaterSwiss
NEW YORK, July 14 (Reuters) - U.S. government officials are weighing a plan that would let borrowers who have fallen behind on their mortgage payments avoid eviction by renting their homes instead, sources familiar with the administration's thinking said on Tuesday.
Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.
Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans, tapping an unused portion of a $50 billion housing aid kitty.
As part of this plan, jobless borrowers might receive a housing stipend along with regular unemployment benefits, the sources said. (Reporting by Patrick Rucker; Editing by Diane Craft)
(Excerpt) Read more at reuters.com ...
Goldman.
Getting real close to Dr. Zhivago, isn't it. (Coming home from the war to find five or six FAMILIES living in the family home.) Progress, Comrade.
“...sources familiar with the administration’s thinking said on Tuesday...” ROFLMAO! I suppose they were channeling Joseph Stalin, Karl Marx, and Adolf Hitler!
Ya know, Kate... I’m just thinking that once the middle class loses control in a country, does it ever get it back? Has that ever happened? Did we ever really HAVE any control?
Ain’t Obama’s “idea” at all....I suspect a bunch of bankers were burning up the wires to the White House....pleading ...anything but to have to eat the “true” value of real estate at the national level.
I have said since January. Fake housing recovery led by foreclosure "bargain hunters". Then avalanche of new foreclosed inventory released by desperate banks next year. Followed by another leg lower (20-30%).
ROTFLOL! Big Brother won't maintain anything.
I tried to tell folks that Community Organizers have no blankin’ clue how free markets work. This administration is the WORST FAILURE EVER.
I can’t believe they’re even considering it. How are we suppose to pay for this?
and who is going to pay for this? taxpayers?
If you can’t pay your mortgage you can just keep living there?
How many hundreds of billions will this cost our kids and grandkids? Can we borrow this from China too?
“Obama is helpfully stepping in and offering the banks another way to ‘extend and pretend’ by having the gov’t take over the house (at the inflated price of course). The bank is happy because they have just passed the risk to the gov’t, the ‘homeowner’ is happy because they stay in their house, and the taxpayer is screwed.”
Very insightful. Scary, but insightful.
At some point they’ll just have to give in....and pay off ALL existing mortgages in the country...
HOw about they FIX the FIX in bankruptcy law and allow mortgages to be reduced to the real market value of the homes?
How about fixing the flaw in the loss write off for banks so they can modify loans and have up to three years to write off the loss. (vs now where forclosure has two years to write it off but modification has to be written off immediatly)
Obama is Failure in Chief.
The upshot is that 0 is advocating gov’t intervention to alter private contracts. That will further undermine the economy and society generally. How can people do business in good faith when they know the gov’t can change the terms of a contract at a whim? It’s a recipe for corruption and anarchy.
Geez, why don’t they just shutter the lender agencies and be done with it. This is ridiculous. He’ll tie up the property so the actual owner can’t get out from under it, and probably pay half the rent that is equal to half what the property could bring the owner on the open market.
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!
He's got the banks and the car companies, now he'll get a bunch of houses and hotels to place on the board. Pretty soon we'll all be indentured servants of Big Brother Obama.
Of course, in the short term, we could just foreclose on everyone and have blighted cities and towns with empty crack houses, whilst the population lives in tent cities.
We need econ development, like drilling and manufacturing. But we as long as we dont help the economy we will have this problem.
Your first sentence is factually incorrect. It's a false premise, so your entire argument is fallacious.
Furthermore, who is "we"? Contracts have parties; there is no "we." "We" do not forclose; lenders forclose as a party to a contract. America is not a collective...at least not yet.
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