1 billion in homeowner aid offered

Nasdaq ^

[MeneMeneTekelUpharsin]

Homeowners facing foreclosure can now tap into a $1 billion program of emergency loans to help tide them over a temporary financial crisis, the Department of Housing and Urban Development (HUD) has announced. Beginning today, homeowners in 27 states can file preliminary applications for the Emergency Homeowner's Loan Program (EHLP). Eligible homeowners can obtain interest-free loans of up to $50,000 to help cover mortgage expenses for up to two years. The program is available to homeowners who have seen their incomes fall and who could lose their homes to foreclosure due to circumstances beyond their control, including involuntary unemployment, underemployment, economic conditions or an illness.

[MeneMeneTekelUpharsin]

Unbelievable. Spitting in the faces of homeowners who struggle and sacrifice and find SOME WAY to pay their mortgages. This is insane. If you can't pay, you lose the house...someone else DOESN'T pay your loan for you!!!!!

[Cementjungle]

due to circumstances beyond their control, including involuntary unemployment, underemployment, economic conditions or an illness

Cool.
Mr. Government Man, the economy stinks. Now where's my $50K?

[Publius]

A foreclosure puts more downward pressure on real estate prices due to more houses being thrown on the market. It also puts pressure on banks to correctly value their real estate holdings, which would blow a huge hole in the assets of the institution. The concept of mark-to-market is financial suicide for American banks.

Although the verbiage indicates this is to benefit individuals who might experience foreclosure, its real purpose is to bail out the banks again. They're kicking the can down the road some more.

[yoe]

Nanny State on steroids...............

........failure is not always a bad thing - being responsible for yourself is the first step.........

[Noob1999]

So what’s another $ billion down the shithole?

Why can’t these idiots allow the housing market to find it’s clearing level, and then allow a normal market recovery??

[giotto]

Infuriating. Not only is it unfair to those who have sacrificed to pay their mortgages on time, but also to those who have been waiting patiently to buy a home they could afford. This bailout is yet another way to artificially prop up home prices, instead of allowing them to fall to the level they would have been, had there not been a housing bubble. Here in California, houses are still 3 times more expensive than in other parts of the country. This ridiculous stop-gap measure will fail. I predict that most of the freeloaders who get these loans will be back underwater in two years.

[businessprofessor]

What incredible logic! Providing another loan to deadbeats. Most of the individuals receiving loans are not home owners. They are home occupiers, stiffing the legitimate home owners (note holders). This program is just another outrageous moral hazzard.

[dalereed]

to hell with the banks and the squatters that aren’t paying their mortgage!

kick their ass out in the street!

[Mr. K]

WHAT IN THE GOSHDARN FARGIN FARK???????????????

[cranked]

the Emergency Homeowner’s Loan Program (EHLP) = crack

[SparkyBass]

Fitty G? Daaang. Ima gonna pimp my ride and git squatter's rights in my new gub'mint howz!

[Publius]

Why can’t these idiots allow the housing market to find it’s clearing level, and then allow a normal market recovery??

Because the act of "finding a clearing level" would take down some of our largest banks, the investment banks who packaged those mortgages into tranches of CDO's, and the firm (AIG) that insured those CDO's. As I said, this is to bail out the financial industry, not mortgage holders.

[Black_Shark]

Capitalism is dead. There are no more free markets or even semi-free markets.

[CharlyFord]

its real purpose is to bail out the banks again.

Yep! This time, the bailout cash goes through the homeowners account. It's getting real complicated. Can and will the Government keep track of who is responsible for the debt. There's a lot of questions here!

This just don't feel right! Somehow, someone will have to pay that debt. Who?!?! Who's money is this that the Government is throwing around??

Who did the government borrow it from?? The Chines or Oil States? I don't think so! The Fed?!?!

[Publius]

The Fed?!?!

As the nun said to me 50 years ago, "Put a gold star on your forehead. You've answered oorrectly."

[Don Corleone]

Eligible homeowners can obtain interest-free loans of up to $50,000 to help cover mortgage expenses for up to two years.

Unemployment insurance on STEROIDS! Stop this nonsense.

[ladyvet]

Unflippin’ believable. Boy were my husband and I chumps for never buying a house we couldn’t afford, taking out a second for toys and doubling down on our mortgage payments.

[Huskrrrr]

A number of my California buddies have found that they entitled to a number of government benefits not available a few years ago. Several have found they now qualify as “disabled” (arthritis, mild depression, you name it). They are willing to spend the rest of their years living in a dumpy apartment collecting their monthly checks and calling themselves “retired”.

[free me]

That might be true if this was 100 billion. It’s not, it’s 1 billion, meant to help Obama get re-elected.

[Terry Mross]

Now the homes are $50k MORE under water. It also puts another lien on the property.