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 ...
Keep it up Zero! Give us more ammo to impeach and boot you out in disgrace whne the repubs take over in January.
It seems like every day there is new evidence that those of us who pay our bills, act responsibly, and honor our legal commitments are just chumps.
I have been and still are unemployed for the last few months. My wife and I were forced to off load or house via a Lease/Purchase agreement (we still own the debt)
No way do I want the freaken gov paying off my debt. But, if he wants to collapse the housing market then he is sure going the right way about it
How many banks are still on the hook by having sold their souls to the devil....err fed?
And how is he going after the banks that didn't take money?
Congratulations! I wish I could!
I could not agree more.
Don't beat yourself up. We conservatives are new at gaming the system. Go get yourself a big HELOC.
Vote bait...
No he won’t. He wants the public dead in the water.
obama admin orders lender to.....
what ever they want.
They own them.
The banks got punked by frank and dodd.
Part of the long term plan
Now the banks owe their daily existence to the whims of a kenyan marxist and people who worship mao.
Freddie and Fannie now own something like 90% of the outstanding mortagages. That means that they own 90% of the homes with loans on them. hugo chavez must be jealous.
Cloward-Piven.
Already have one, and it's zero balance. It will stay that way.
But in my state, we are limited to 50% of the market value unless there's already a primary mortgage -- then it's 70%, total.
So, there's really no way to get underwater, because we never had a real estate price "bubble" in the first place.
And just my luck: my job is secure for a while, and I have enough investment and property income to live on indefinitely if I wasn't working.
I'm screwed.
Over half the foreclosed homes are now back in foreclosure.
Isn’t it grand when we have some dumba$$ who never ran a lemonade stand, ordering everything to be done?
If you want to see how this works out, look at the dilapidated state Venezuela is in after a few short years.
I am currently employed. You people have so little compassion for my people’s plight! You conservatives are as heartless as MSNBC portrays you to be!/sarcasm off
Actually, I am receiving unemployment benefits I think for 75 weeks & I am sure it will be extended again unless Senator Bunning sticks his nose into the “people’s business” again. /sorry - sarcasm off again.
Between UE benefit and a COBRA subsidy, I am receiving almost $2700 in state and federal subsidies monthly.
I can’t imagine my mortgage being covered as well! Will these cuts/adjustments also include the escrow for tax & insurance?
Understand that I am not cheering this development. I would rather have an economy churring out jobs for me to take care of my house payments on my own.
When is someone going to stand up and just say “go to hell” to the usurper? If they don’t care about freedom, you’d think someone would at least care about their profits.
Such an order is not lawful. The banks can just politely ignore the order or tell him to f off if they want. Only Congress can enact a law. And such a law may not pass the constitutional requirement to not interfere in contracts.
Now could he threaten to use agency actions to make their business difficult if they do not do what he wants? Probably. But I don’t think that will sit well with the majority of people.
This kind of stuff is just not the federal government’s business. How do you avoid rewarding families who make poor priority decisions when they are in hard times? That automatically penalizes families who make other unknown sacrifices to keep their mortgage current. Why should banks subsidize one and not the other?
Nope. Your house won’t be paid for. Your history as a freeper is well known to the administration. Bitter, tea party, hate mongering constitutionalists must not be subsidized but punished.
Yeah, I really didn’t know I could have bought a house worth 3X the amount of mine and gotten a “mortgage bailout”.
I want my credit card rates to be fixed at 3.99% for the duration!
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