Obama throws $75 billion lifeline to homeowners

[carpro]

http://news.yahoo.com/s/ap/20090218/ap_on_go_pr_wh/obama_home_foreclosures

Obama throws $75 billion lifeline to homeowners

By MARK S. SMITH and ALAN ZIBEL, Associated Press Writers Mark S. Smith And Alan Zibel, Associated Press Writers

MESA, Ariz. – President Barack Obama threw a $75 billion lifeline to millions of Americans on the brink of foreclosure Wednesday, declaring an urgent need for drastic action — not only to save their homes but to keep the housing crisis "from wreaking even greater havoc" on the broader national economy.

The lending plan, a full $25 billion bigger than the administration had been suggesting, aims to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession.

__________________________________________

More of the same government insanity and meddling that caused the mortgage meltdown in the first place.

Democrats never seem to learn by their mistakes and taxpayers always get stuck with the bill.

 

[777]

???

Dude's a hyper-Keynesian, isn't he? Assuming there really is 9 million of 'em . . .

$8333.33 each

TARP redux. Why would it work this time? Is he actually TRYING to crash the Dow again?


<oversized image deleted - LE - Please read the posting rules about oversized images, thanks! >

http://cagle.com/working/090212/horsey.jpg

 

[LeBuick]

???

Dude's a hyper-Keynesian, isn't he? Assuming there really is 9 million of 'em . . .

$8333.33 each

TARP redux. Why would it work this time? Is he actually TRYING to crash the Dow again?

Not sure what you're saying, are you questioning there being 9 million families in foreclosure?

 

[777]

Not sure what you're saying, are you questioning there being 9 million families in foreclosure?

Ya, although that might be the correct number.

.. . as many as 9 million homeowners ...

I can't get the math to work up:

Headlining the plan was a $75 billion Homeowner Stability Initiative, under which would provide incentives to lenders to cut monthly mortgage payments to sustainable levels. It defines this at no more than 31 percent of a homeowners income.

Another key component: a new program aimed at helping homeowners said to be “under water” — with dwellings whose value have sunk below the principal still owing on their mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 to 5 million families do just that.

Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody’s Economy.com

... sez MSNBC

http://www.whitehouse.gov/blog/09/02/18/Help-for-homeowners/

So it's only for people NOT tied up in Jumbo loans, and NOT for people more than 5% underwater in non-Jumbo loans and ONLY people holding a Frannie or Freddie loan. It will help no one, except those who are on the cusp of being underwater and are now paying exorbitant rates on ARM resets. The problem is, this is just much too late in the game. The amount of property devaluation in the last twelve months kills the number, too.

 

[billwald]

How many of you on this thread owe more than your house is worth? And if you intend to live in it, why does it matter?

My house is paid off but I have owned several cars that cost me more than they were worth. Didn't stop me from driving them.

 

[donnA]

How many of you on this thread owe more than your house is worth? And if you intend to live in it, why does it matter?

My house is paid off but I have owned several cars that cost me more than they were worth. Didn't stop me from driving them.

My husband and I were talking about this last night, and we agree with you. If you plan on living in it, then just amke your payemtns and stop crying. eventually the economy will right itself (unless it's really messed up bad by all the governement waste), and your house value will at the sametime right it self. It always works this way.

 

[777]

Well, I was lucky enough to inheirit a house, though the property taxes on the place are sky-high.

I don't think this guy would qualify under the plan, but it's the mentality that gets me - he makes $45k a year and has a $700,000 home mortgaged upto the hilt in NYC. C'mon.

 

[rbell]

I want a beach house, but can't afford it.

Obama and the Federal Government owe me one.



This is an unbelievably stupid, socialist bill.

Americans that pay their mortgage should not be bailing out Americans that don't.

I know some folks have it rough...but it is not the Government's job to do away with all consequences.

Besides...this bill is even worse than a bailout: It gives help to "upside down" homeowners...even if they're not in trouble.

Obama and his ilk will have this country bankrupt in a decade. Either that, or it will take a truckload of dollars to buy a happy meal.

 

[LadyEagle]

Well, I was lucky enough to inheirit a house, though the property taxes on the place are sky-high.

I don't think this guy would qualify under the plan, but it's the mentality that gets me - he makes $45k a year and has a $700,000 home mortgaged upto the hilt in NYC. C'mon.

C'mon is right. Once again, the greedy let him have a loan for a home he couldn't pay for, didn't qualify for, didn't document income, etc. Good grief.

Americans that pay their mortgage should not be bailing out Americans that don't.

Preach it!!

 

[LeBuick]

I want a beach house, but can't afford it.

Obama and the Federal Government owe me one.

Just go out and get one then don't make the payments... :thumbsup:

 

[JustChristian]

http://news.yahoo.com/s/ap/20090218/ap_on_go_pr_wh/obama_home_foreclosures

Obama throws $75 billion lifeline to homeowners

By MARK S. SMITH and ALAN ZIBEL, Associated Press Writers Mark S. Smith And Alan Zibel, Associated Press Writers

MESA, Ariz. – President Barack Obama threw a $75 billion lifeline to millions of Americans on the brink of foreclosure Wednesday, declaring an urgent need for drastic action — not only to save their homes but to keep the housing crisis "from wreaking even greater havoc" on the broader national economy.

The lending plan, a full $25 billion bigger than the administration had been suggesting, aims to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession.

__________________________________________

More of the same government insanity and meddling that caused the mortgage meltdown in the first place.

Democrats never seem to learn by their mistakes and taxpayers always get stuck with the bill.

This time I agree with you. I;m convinced that we really are in an economic crisis perhaps second worse to the 1930's. However, it seems to me that everything that we do right now should be to strengthen banks and boost the economy. I'm not sure what selectively giving some people aid because they're losing their homes for whatever reason helps.

Money spent by the federal government needs to "get into circulation." It needs to add jobs or provide critical support like helping bankrupt states.