Posted on 07/23/2011 3:29:43 PM PDT by sinanju
The Obama administration is examining ways to pull foreclosed properties off the market and rent them to help stabilize the housing market, according to people familiar with the matter.
While the plans may not advance beyond the concept phase, they are under serious consideration by senior administration officials because rents are rising even as home prices in many hard-hit markets continue to fall due to high foreclosure levels.
Trimming the glut of unsold foreclosed homes on the market is "worth looking at," said Federal Reserve Chairman Ben Bernanke in testimony to Congress last week.
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(Excerpt) Read more at online.wsj.com ...
In addition to all the terrible ramifications mentioned already, the bondholders will get shafted. So if your bank savings account or your money fund owns mortgage debt, it’ll be reduced to (by one estimate) 20 cents on the dollar. I don’t know if that includes Fanny or Freddie. Particularly at risk are certain mortgage REITs.
When the rent is dropped, the value is dropped, then the value of the mortgage is dropped when marked to market or when they are ordered to do so. The investors (just like the GM bond-holders) get screwed.
One more wealth transfer from the “rich” (nearly anyone with savings) to Holder’s people.
So far, this is just a speculation of what our feral federal government could do by tax wizard Geithner (he made a proposal). However, I think Obama is losing popularity so fast that impeachment becomes a very real possibility. Also, Congress, and what’s left of the Supreme Court, would have to be breached.
More government control of the banking industry? I don't think so. How about take the stupid controls and government forced requirements off and let the free market solve the problem.
” great. now they can use Fannie to wreck the rental market like they did the housing market. “ WB
” I’m guessing this means putting welfare bums into homes that working people can’t even afford and making the taxpayers fund their destruction from the inside out. “
You are both right!
Do you think Cloward-Piven invented socialism?
“Well I’m glad the houses on either side of me are safely owned even if they are empty.”
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And I’m just as certain that soon Obama will step up to the podium and rail against land-owning kulaks who allow properties they own to go unoccupied as long as there are teeming homeless masses living in shelters and cardboard boxes.
Rest assured, there will soon be some Executive Order or HUD regulation requiring property owners to rent to Section 8 voucher holders if no one is occupying their property.
In fact, just like in Dr. Zhivago, expect a law demanding that anyone with more housing space than they “need” be required to TAKE IN Section 8 lodgers.
You just don’t understand our Dear Leader yet, do you?
There is a glut of supply. Stop with the artificial demand. That is how we got here in the first place. The idea that free market capitalism is the culprit for this crisis is laughable. Free market capitalism is about price discovery. The left promotes price obscurity and artificial price controls.
I’d bet there will be a a terrific increase in house fires if they try moving the trash into the middle class neighborhoods.
“Do you think Cloward-Piven invented socialism?”
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No, but they sure put an edge on it.
And just who pays for the upkeep/maintenance of these newly designated Section 8 properties?
I'm sure Uncle Bam will include upkeep on these houses, right?/s
Too bad there are no entrepreneurs left in the USA. This is an enterprise that could have been presented to the banks as a way to recoup their losses; by allowing rental companies to use their marketing and profit expertise.
The Gubmint has no clue how to turn these lemons into lemonade.
I wonder if I could get obama to buy my upside down house then rent it back to me for half of what I pay for the mortgage each month.
Seriously, I’m beginning to think the mortgage crisis was all on purpose so as to usher in Agenda 21. I know I sure don’t trust the Bushes.
The mortage companies were already paid off by the tax payer yet they continue to collect payments. So, as far as I’m concerned, the government already owns all the mortgaged houses in this country.
” I’m guessing this means putting welfare bums into homes that working people can’t even afford and making the taxpayers fund their destruction from the inside out. “
You are both right!
Close but a little off target.
The houses will be rented! And, stripped! And, abused as always!
And, then the taxpayers will pay contractors using mandated union labor to fix them back up. And then, they'll be rented again!
The people in Russia have got to be laughing their a$$es off at us!!
“LOL one again, I’ve already thought about that and spoken to my neighbors about it. All 3 of my neighbors have already considered putting a warm body into the empty house they own.”
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Good idea. Everyone in such straits should have a house-sitter. Thank heavens you can now do cheap online background checks (I watch too much TV).
Oh dear! Oh dear! Expect Obama to ramrod a regulation through declaring that X-duration of occupancy to constitute de facto squatters’ rights!
The mind reels... 2012 cannot come soon enough.
I propose the trade down program. If you are going under and the bank is going to take your house, you have the option to trade your house for a smaller one that the bank owns.
Your mortgage goes down, and you get to stay in a house. And while the bank is carrying a higher value property, it’s better than carrying two.
Impeachment is something that will NEVER happen again to a liberal. There’s not one congress person who would even have the guts to mention it.
You are 100% correect. I got it when I saw what Obama did in Kenya in 2006/2007.
Look at the facts:
1) limited mobility of the population because of higher gasoline prices
2) limited mobility of the population because of assaultive anti 4th amendment security checks
3) linmited rights of assembly by being turned away from meetings by SEIU thugs
4) Use of false crisis so that last minute, un publicly revealed totalitarian solutions are made to fiscal and administrative decisions and the poassage of laws
5) The waging of foreign wars based directly on presidential individual ideology without any defined national interest and the destruction of Libya as a vaible abnd peaceful economic power which was pro Western
6) The refusal to secure the border in New Mexico and Arfizona so that a revolutionista movement made up of armed drug cartels can set up shop in our nation.NOw they are in every major city.Tghey control sections of our Southern Border.
7) The use of the media to disguise truth and mislead the people.
8) The villification of american citiens by group in consecutive rotation, dirty rotten wall street, dirty rotten bankers, dirty rotten auto companies, dirty rotten corporate jets, dirty rotten “ you’re next.”
9) The unilateral use of executive orders to prevent the regrowth of small business, and the mmisuse of federal agencies fir the same, ( Diamond Food Walnuts).
10) Criminalizing the refusal to purchase government health care and the use of the IRS to seize citizen assets to collect fines and penalties, and delibnquent health care payments.
11) The failure to produce a budget so that the president can prioritize spending according to his own whim.
12) The falsification of data to show that our military would accept openly gay servicemen and women.
13) The use of Homeland Security to denigrate the people who have so called conservative (American) values as risks to the nation, without data to support such security risk findings.
This is just a short list. Yes Obama is moving for total control of the populace, and he has been since before his election, being included in TARP negotiations even before he was elected as president in order to control our financial future.Obama is a nationalist socialist bent on self defined historic justice, the calling card of all fascists in history, and bent upon the socialist solution of totalitarian control through the abuse of confiscatory taxation and invasive regulation by government.He is a usurper, a treasonous thug, and he will come to no good end.He and his ilk never leave quietly and it will be a battle of violence and blood to resecure our republic.
Good Read:
http://www.americanthinker.com/2009/05/barack_obama_the_quintessentia_1.html
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