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 ...
I agree completely.
O will take away all incentive to work an honest job.
A tax holiday wouldn’t work at all! What about all those poor Obama leeches that are not employed? What about them? A tax holiday would only benefit the elitist snobs who work every day and are too selfish to share! Welfare for the rich!
(do I really need the /s?)
Why?
I hope you don't mind me jumping in, but it's very optimistic to think the housing mkt will bounce back in 10 yrs. The longer the govt attempts to keep what's left of the bubble inflated the longer the depression will last. Housing is still at least 15% to high.
Residential real estate values are affected by population, jobs and schools. The echo boom generation is about half the size of the baby boomers. Unemployment is soaring and the avg work week is the lowest since 1964. IOW, this is going to go on for some time yet, don't believe the green shoots crap.
Well, near as I can tell, the thought is that if you take out a mortgage, you then have money you can invest.
So if you invest the money at 8% and are only paying 6% on your mortgage, you can make all kinds of money on the side.
Or something like that.
Not having a history of being really financially savvy in that regards, we figured we’d be better off not owing anybody any money.
------------------------------------------------------------
So in essence, delinquent homeowners would be subsidized by those who pay taxes allowing them to stay in their homes.
Great idea....if you're a statist.
I follow.
You are much smarter. I'm in the real estate business. Throughout the boom I had mortgage brokers telling me I was dumb for not refinancing various properties. I always told them the problem is you still have to pay the money back. Instead I rehabbed, added value and increased the cash flow. I took a more conservative approach and thank the LORD it has worked out well.
BTW, my house is paid off also.
Not welfare, the continuation of the elimination of private property.
Yes, but Comrade, don’t you see how much more fair eet ees eef all the glorious workers in our glorious workers paradise of the USSA share in the vealth and even the homes of the eveel capitaleest peegs??
Who cares eef we are all crowded and poor, at least we shall all be poor together!!!!
Zen, when all the large homes of the evil capitalists finally all crumble down and there are no more evil capitaleest homebuilders left, our glorious leaders can direct a 5 year plan for loyal party members to build us the practical and useful 20 story cinderblock apartments just like our glorious comrades in Soviet Russia and North Korea!!
I’m so glad we read Larry Burkett’s “The Coming Economic Earthquake” way back when we were first married,and followed the advice in there. He was so wise and foresaw something like this happening even way back 20 years or so ago.
Can we vote again yet?
WTF????
This is blatant “plantation” vote-buying. Ostammer really could pull off a Chavez-like coup against the American constitution in order to stay in office indefinitely with ‘programs’ like this.
I get it.
The middle-class and the rich get taxed up the yazoo to make mortgage payments for ne’er-do-wells. The Marxists get a double-whammy for this: bribe constituents indefinitely by them serving as middle-man money-laundering beneficiaries of public monies that end up in the hands of corporations that will, by operation of law, be forced to become dependent on government for large portions of its income.
“Social justice” through intimidation and extortion.
It’s time.
IIRC, something similar happened in Egypt in ancient times; you can read about it in the book of Genesis. The people ended up enslaved.
I think you are right. Also, the housing will not appreciate dramatically like in the recent past, with luck the homeowner will keep pace with inflation. IOW, buy the house because that's where you want to live not as an investment.
Those who are sitting on expensive but average real estate will have problems. And... this is not going away any time soon.
A lot of folks will get a little pleasure out of these "wealthy" owners taking it on the chin.However, if they can't downsize after the children are gone a big buying portion of the cycle is stopped which will slow the economy as a whole. The volume of sales is further reduced, a lot of people earn less and the market stagnates.
We are staring at STRUCTURAL unemployment of 16% or so for the next 20 years. Consumer demand is severely depressed and fewer consumers can buy. Time for a new life strategy...
It's happening right before our eyes. Now we are going to find out if the liberal brainwashing of the last 20 yrs is successful. Do most people believe the govt can do everything for you and guarantee you a good life, or do we value individual liberty and the freedom to succeed or fail.
The depression we are in the early stages of does not have to be as bad as we are making it. If we stop bailing out businesses with failed business models and get the govt out of trying to run the markets there will be short term pain, but sharp well run businesses will emerge. The alternative is to pursue the european socialist model and have chronic unemployment in the double digits, little or no economic growth, no innovation and other nations dictating what we can and can't do because they control our debt.
That's precisely what Ron Paul said & I agree.
Here in Sacramento, we have an additional problem with our housing market. Thirty percent of the people in our area work for the State, and the State of California is failing, laying off people in record numbers. So, in addition to the all the other economic woes both for California in general and for the country, we have that added weight pulling things down.
We went to a July 4th barbeque last year at some friends' house. They live on a cul de sac and of the roughly ten homes in sight of their house, four were already foreclosures -- and that was a year ago.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.