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 ...
This is kinda like saying that you are gonna cure cancer by shooting everyone in Stage-4.
Voila, no cancer deaths for 6 months.
Duh. Thanks, Lorianne.
Some people need a few more whacks upside the head before they see the light.. give em' a couple more days. ;0)
Shoot, too bad I have a job!
Seriously, this is unbelievable. I can’t believe this is America anymore.
Grrrrrr....
That's because we ARE chumps.
When we bought we kept being told that we 'qualified' for a house 3 times highter than our stated price range. The RE agent rode us hard to try to get us to not only buy a in the range we 'qualified' for, but to s-t-r-e-t-c-h for an even more expensive house (it'll be worth even more in a few years!)
But we didn't want to be saddled with a big mortgage and we felt like we were doing the smart thing. (I never could figure out how with people with those huge mortgages could sleep at night ... even if they had a good job.)
Turns out we were not smart, we were chumps! We could have gotten a much more lavish house and then have the government slash our payments/principal! What's more we could have bought all kinds of expensive things and rolled it into the mortgage by taking out equity and that would be written down as well!
What dummies we were.
1) What gives the executive branch the authority to do such a thing?
2) Why doesn't Obama just order the armed forces to nuke our country and get this over with quickly?
Yep, that’s about the size of it.
The problem is the banks would have to file the suit. And that’s a no-win situation for them. If they win, the banks are still left holding onto the toxic debt. And without relief, the barrowers can just walk.
Bank of America has already given in and saying they will start slashing negative equity on some of their most underwater loans they purchased from Countrywide.
So I dont see the banks fighting this.
1) it doesn’t. Congress is who is raping us.
2) because they want to turn up every penny before the abandon us.
I've been asking myself the same question. How I wish someone, anyone, had the gonads to tell the tinhorn dictator to go f himself.
((Hugs)) So sorry. I made the same mistake -- paid off my house, no credit card debt. Heck, I even have health insurance. No community organizers around here so I didn't know I was acting irresponsibly.
I don’t see it that way. ICBA and American Bankers will go to the wall on this one. B of A has TARP money if I am not mistaken and that are part of the Obama support group. I think B of A was little more than a publicity stunt insitgated by the Obama crowd.
The stakes here are far beyond huge and I don’t see the community bankers folding on this one. I can’t imagine the FDIC is too thrilled about such an idiodic proposal either. Such a ploy will put the FDIC fund at even greater risk, just after banks paid three years premiums IN ADVANCE.
I wonder what the final straw will be.
Welcome to the Brave New World of Psychosis.
No, you will be out on the street but a “supporter” will git youse house.
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