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 ...
There are theories about economics, and then there are economic realities. Go ahead Barack, do this. But you know all of those houses that are not being sold now? Well, there were will be even fewer being sold with anyone financing them.
Ain't America great?
this is already in place, this news story reporter is about two months LATE as usual.
Seriously, when banks were criminally inflating the prices on these homes what did they expect?
They changed bankruptcy law in 2005 to attempt to enslave home owners.
Remember that bailout money? It had strings.
the 31% under the current program does include taxes, insurance, HOA, and the mortgage payement.
KEEP IN MIND, THIS IS NO BARGAIN.
After five years the interest reboots.
AT THE END OF THE MORTGAGE PERIOD (say 30 years) YOU HAVE A BALLOON OF ALL THE PRINCIPLE!
This is no bargain, this is slavery.
It is another mortgage trap.
There is no forgivness just forbearance.
The banks were given 80% on the dollar AND they will collect 100% of the mortgage. (or the feds will pay with our money again)
Yes, I recall that, although I also recall that not every bank took the money, and some have paid it back. I rather doubt the democrats are going to satisfy themselves with attacking just some of the banks.
already being done.
Well, hell—why don’t I just quit my job and sit on my ass for a while, then?
Yep. It is the eeeeeevil rich banks’ fault that people are losing their homes!
And Paulson made 'em all take the bailout money. Thanks GW.
And how is he going after the banks that didn’t take money?
______________
That’s what I want to know. I can see Obama commanding those banks that took TARP assets; telling them to obey or else.
But this article says nothing about TARP vs. non-TARP banks. It looks to me like ANY and ALL lenders will be forced to comply.
We are living in desparate times. And this is only the beginning.
Is that really his job?
These people are beyond stupid.
If contracts mean nothing, no sane lender will write and commit to one.
Watch new mortgages drop to zero.
Welcome to the Banana States of America.
I’m ready to quit.
Why earn any money?
Where do I sign up for the Government Nipple?
(sigh).
Every week I watch “Lost” and think: “Why do those stupid people want to get off the island? There’s no government there.”
I will start adding that to my prayers tonight!
How is he doing this? If they’ve repaid TARP then he shouldnt have any hooks.
That’s not Communism, that’s Fascism, where the means of production (capital) is in private hands, but a central government dictates almost anything they do.
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