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 ...
This sounds all nice, warm and cozy and caring but if the people have LOST THEIR jobs and can’t pay a mortgage, how can they pay rent? May as well pay them first month,security deposit ect.... for an apartment. No, wait then we will have too many empty homes...
This is the same as saying he will offer loan modifications which they have already done and it has not worked.
So now people can stay and WE have to pay for it? WTF? Hell throw in a free cell phone for them as well! WAIT they already did that. SonofaBeotch!
Those on the receiving end of cradle-to-grave never mature much beyond the cradle.
Good points.They’ve been living rent free and suddenly they
will start ponying up rent money.These people in D.C. live
in a pollyanna world.
Of course the government will then have the right to enter your home anytime they want; searching for guns, etc.
Remind me - why am I paying my mortgage?
Thanks - sometimes those of us who are responsible need to hear those words.
We are in a very scary time with a socialist turning the greatest country on earth into a third world banana republic. The 2010 congressional elections are CRITICAL in slowing this sprint towards socialism down.
The object of the game is to destroy American capitalism by having the government take over everything!
Tokens include a bus, a teleprompter, a sprig of arugula and a waffle iron.
Wanna play? No??? Too bad, you're already playing... And quite frankly, in this game, nobody wins!
Someone please tell me again please - What incentive is there left to continue to pay my mortgage???
“de facto reparations”
MrB, for some reason I hate the expression “spot on” but
that observation is: spot on.
Uncle Landlord, Uncle Sugar, where’s my piece of the pie?
He he... good one.
I wonder if I can rent a nice car this way...?
If you have a typical mortgage on a home, you own it. You then also have a promissory note with the bank, giving the house as security.
When the bank forecloses, it is taking the security promised because the underlying note was not paid.
There are all sorts of reasons, liability, tax, etc, that no bank wants own a home as long as the mortgage is being paid.
IMHO, not so much reparations, but very high overhead (inefficient) income redistribution. By this I mean taking money from those that have it, and giving it to those that don't, while slicing off a big piece for the government.
This is not what America stands for.
Actually this plan is not about the homeowners at all. It is about the banks, all the big banks! The banks are so underwater with their mrotgage portfolios that they are desperate to NOT foreclose on houses. When they foreclose, they have to RECOGNIZE the loss on their books, and in essense the big banks will be shown to be bankrupt.
I saw yesterday on FR a good analysis of the problems the banks have with subprime, option arms, o% down mortgages and it is huge.
The only way out is for banks to keep the inflated house value on their books any way possible. This plan is another Goldman Sachs sponsored scheme to keep the people from learning how screwed we are. By NOT having to foreclose and dispose of houses at probably 50% of what they have listed as the value (remember, most of the problem mortgages are in Ca, NV, Az, and FL which had huge runups in prices), the banks can pretend they are still solvent.
\
The bankers have even invented a new phrase to describe this deception. It is called ‘extend and pretend’. In essence that means the banks ‘extend’ the time before they foreclose on your house (in some states, people have not been paying their mortgage for over a year and have not yet received a foreclosure notice!). Once they extend, they ‘pretend’ the house is still worth what they had it appraised at when the mortgage was written.
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.
This is just another way of extending the inevitable collpase.
if people who defaulted on mortgage payments are allowed to live in their homes while the government pays their living expenses it is time for pitch forks and torches....We MUST put a stop to this NOW!!!!
where the HELL is the relief for people like us who break our backs to pay our bills!!!! where the hell is the relief for people like us who live within our means and prioritize properly!!!! THIS BS MUST END!!!
Laws? Obama? Surely you jest...?
Either that or the nationalization of the housing market disguised as a welfare program.
Oh, for Goodness Sake! So why doesn’t the federal government just buy up all the houses that are at any miniscule risk of foreclosure, and then rent them to the people? And give the people the money for the rent? Seems easy enough. (sarc/)
Also see Kelo...
There are already people out there that will buy a home, and lease it back to the folks that previously owned it with the option to buy at the end of the lease (when they get their credit lined back up).
They are called “private investors”. However, the word “private” is NOT what this admin wants to promote.
Three Politicians
Al Gore, Bill Clinton and Barrack Obama go to heaven,
God addresses Al first. ‘’Al, what do you believe in?’’
Al replies: “Well, I believe that I won that election, but
that it was your will that I did not serve.
And I’ve come to understand that now.’’
God thinks for a second and says:
“Very good. Come and sit at my left.’’
God then addresses Bill. “Bill, what do you believe in?’’
Bill replies: “I believe in forgiveness.
I’ve sinned, but I’ve never held a grudge against my fellow
man, and I hope no grudges are held against me.’’ ;
God thinks for a second and says: “You are forgiven, my son.
Come and sit at my right.’’
Then God addresses Barack. “Barrack, what do you believe in?’’
He replies: “I believe you’re in my chair.”
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.