Let’s just make MORE bad loans!!!
It worked so well the first time.
And the Constitutional authority for this is... where?
INSANE
who will pay for the losses the banks and mortgage companies incur?
Of course the Takers will love it and that buys 0dumbo votes
Maybe i should quit paying my mortgage too
Few thar be who learn in time to keep deys $*!*hooks to demselves!
an “executive branch rescue”
more legislating from the offices of Jarret Plouffe Axelrod Inc
This fix is illusory. In all fairness, someone who is current on their mortgage, and has been that way historically, is unable to refinance at the now low rates because the appraisal will show they are underwater (debt more than value of home). While this allows them to refinance at lower rates, it doesn’t address the real problem. As long as these people will stay in the house for many years, their debt will ultimately be less than the value via amortization.
The real problem is those that don’t pay. I know, the big bad banks made them sign those notes and take all that money, but they are dumb and didn’t know what they were doing. In the meantime, they are living rent / mortgage free and the courts, state governments and the feds are protecting them. As a lender, you simply can’t foreclose in any reasonable time frame.
The answer; give the holdover $2,500 (you pick a number) to vacate and have money to put down a deposit on a rental. Sell the now empty house to a qualified buyer at market prices and move on. The lender is taking the hit anyways; the quicker the better. Sure, this isn’t fair to the people who pay; but it is the only way to get the housing industry bottomed out and moving again.
Repeating the same failed socialist BS will lead to the same results, it is the definition of insanity but socialism is insanity.
Sooner or later, everybody decides they can run the show.
O and minions are moving toward abolishing private property and allocating existing housing according to need. Think I am being alarmist? Look at the British Labor Party’s proposal to force the elderly into downsizing through taxes if they have more bedrooms than they need. It’s only fair don’t you know. Giving housing to people who can’t afford it won’t work.
This proposal by our idiot sounds just like that. If he is going to give reduced mortgages to some, he must give them to ALL. . . . . . . .
—homeowners...who are current on their payments.—
This is interesting. When you sqeeze in one place, it comes out somewhere else. If people think that they will qualify if they stay current, many will do all they can to do so. This means no Christmas presents this year. This means that Christmas sales will be lower than they would have been if people sort of, you know, let the house payment go a month late or so to buy presents.
Not saying any of this is right or wrong, but the money from this is gonna come out of the economy one way or another. And our economy is already on a razor’s edge.
It allows homeowners who have an FHA loan and are current and have a high credit score (and presumably high income) to refinance. Even I would likely qualify if true and I’d be insane not to take advantage of it given the likely impact on the housing market in the future.
Under current tax law..forgiveness of debt is taxable as income to the beneficarey of that forgiveness. So, if Obama’s plan goes through..will all these people get 1099’s for tens of thousands of dolalrs. Hey, maybe it’s his plan to lower the deficit..
is this part of what he is building
http://www.youtube.com/watch?v=ykmXIVKy9G8&feature=uploademail
is this part of what he is building
http://www.youtube.com/watch?v=ykmXIVKy9G8&feature=uploademail
Taxpayer, hold on to your wallet. The SEIU should fund this boondoggle, since, they are the ones with jobs.
When they get around to revampimg SCAMR, let me know. ;-)
Socialist Commies Assigning Mortgages Risks
In a move akin to when Bubba put Hillary in charge of Healthcare, Moochelle could become the head HARPie...