Posted on 03/25/2010 3:54:54 PM PDT by tobyhill
The Obama administration plans to overhaul how it's tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.
Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower's income, which would typically be their unemployment insurance, for up to six months. In some cases, administration officials said, a lender could allow a borrower to make no payments at all.
The new push, which the White House is scheduled to announce Friday, takes direct aim at the major cause of the current wave of foreclosures: the spike in unemployment. While the initial mortgage crisis that erupted three years ago resulted from millions of risky home loans that went bad, more recent defaults reflect the country's economic downturn and the inability of jobless borrowers to keep paying.
(Excerpt) Read more at washingtonpost.com ...
So, does this mean those of us that are retired can now NOT pay our mortgage payment???
How will it drag the economy down further if it’s coming out of TARP money? Honestly, I’d like to see some Americans get the money as opposed to Obama cronies.
We are unemployed, but I don’t believe this isn’t going to help us a bit because we have made triple payments, up until the time we became unemployed. We owe less than half of what our house is worth. LOL No soup for us because we did things right even though the payment is now killing us and is more than we receive in unemployment.
Sell our home? There are humpteen houses on our block for sale. I don’t think we could even dump it at a loss right now due to this area being so repressed.
My lovely sister-in-law and brother-in-law did this. They bought too much house and got behind on the payments due to buying 2 new ridiculously high dollar cars. Both still have good, high-paying jobs. They quit paying and the bank refinanced at a reduced interest rate plus had some knocked off the balance. They just giggle at their genius and laugh at us for being foolish for buying a smaller home and making triple payments. Needless to say, I no longer speak to them (Not that I ever did much anyway.)
Perhaps the same way he unilaterally adjusted established bankruptcy law when he took over GM and Chrysler -- just stepped in and placed unsecured union creditors and the government ahead of secured bondholders.
It's increasingly apparent that, like any good communist, laws are merely minor irritants to be brushed aside when they don't suit him. But just let us try the same thing, and we'll wind up in his gulag so fast our heads will spin.
It's been here for quite some time. We just didn't want to hear the warnings and instead, heckled and ridiculed the messengers as conspiracy theorists.
Good luck borrowing $5 dollars as liquidity petrifies.
It's increasingly apparent that, like any good communist, laws are merely minor irritants to be brushed aside when they don't suit him. But just let us try the same thing, and we'll wind up in his gulag so fast our heads will spin.
That's how I expect him to try to play it. The more the democrats move the American people into slavery the less productive they're going to be...the democrats are on a path to failure...and the destruction of the nation. We might as well just divvy up the nation into 2 parts now and split semi-amicably.
What state do you live in? We get $1200 a month and lost our COBRA because we couldn’t afford it.
Welcome to the neighborhood! My neighbor announced nearly a year ago, “I filed for bankruptcy” and “my house is in foreclosure”. She’s unemployed but still manages to keep her Big Horn Dodge pickup tanked up and ready to roll with smokes and brewskis to go. I retired 3 years ago and went back to work full time one year ago. My house is nearly paid off, and I just made an offer on a house a mile away from here - short sale - just to get away from this neighborhood. So that will probably get effed up thanks to his ObaMagnificence.
Where do you people live? South Carolina’s MAXIMUM unemployment benefits are only 326 a week! If I lose my job I’m in big trouble.
My brother actually worked with a guy from fedex who found it was easier to get laid off or fired .. collect benefits and government programs. He would live just as well if not better, stay home and play wii all day. So he went and got himself fired two days later.
I guess the system works eh?
We know - us "conspiracy theorists" got it from all sides.
This cannot be allowed to happen. The crisis was caused primarily by the dems and they now want to compound the problem by punishing the banks further. They forced their hands regarding the loans and now this.
I have a loser that has been out of work for over a year, and not because of the economy. He is a useless waste of space and simply refuses to support his family. Lets just give him permission to be a loser.
I simply cannot take much more.
That's the way I feel
This has fundamental implications about property rights that grievously conflicts with the Constitution. It will be challenged in court before the ink gets dry. If the court upholds it, all of our property is at risk, and there won’t be many restraints left because the Constitution will no longer be worth the paper it is written on.
Because it artificially props up the bubble RE prices.
They need to be allowed to fall naturally.
We will not begin recovery until the market has be reset and rebalanced (ie not gov. manipulated)
...to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday. Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower's income, which would typically be their unemployment insurance, for up to six months. In some cases, administration officials said, a lender could allow a borrower to make no payments at all.
Isn’t that the truth.
And it’s still going on.
People all across the spectrum are still defending TARP and various bailout.
Folks, we need a 2nd Ameican Revolution before it is too late.
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