Posted on 09/01/2007 7:38:46 AM PDT by Jacquerie
- President Bush said Friday that the government has a role to play in helping homeowners facing foreclosure
-Yet there are many American homeowners who could get through this difficult time with a little flexibility from their lenders, or a little help from their government.
- Bush said the program is aimed at “homeowners who have got good credit history but cannot afford their current payments,” — those who didn’t fall behind on payments until their teaser rate expired.
(Excerpt) Read more at epaper.investors.com ...
With Capitalism come recessions. We don't like them, but government programs can't make them go away.
Govt. programs usually make them worse. We must protect our wealthy connected loan sharks.
Government created this crunch, and the Dems are most responsible. They have let reform plans languish in congress in favor of initiatives to address imaginary global warming.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
The problem with these refinances would be that the market value of these homes has dropped and is below the principle owed. What will FHA refinance...140% LTV. The bigger question would be: why would the borrower want to?????
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
President Bush Discusses Homeownership Financing
www.whitehouse.gov/news/releases/2007/08/20070831-5.html
Fact Sheet: New Steps to Help Homeowners Avoid Foreclosure
www.whitehouse.gov/news/releases/2007/08/20070831-4.html
I wonder if it will be written for “Owner-Occupied” homes only?
Or will those second vaction homes and speculation houses be included?
Anyone seen these details yet?
It sure did, with years of easy money. Now we are supposed to believe the solution to the easy money bubble is more easy money. There is no question the administration pressed the fed for a short term tonic to suppress the symptoms until after the next election.
Great question. Also what about people who used their homes as ATMs to suck dry the equity in order to take vacations, buy cars, etc.
Well then they need to stop taxing all forgiven debt...why just mortgages?
Another idea getting attention is one by economist Dean Baker of the liberal Center for Economic and Policy Research. He wants to change foreclosure laws to let tenants stay in their home, so long as they pay the going-market rent.
What an idiotic idea from liberals...who will make up the difference in payments to the lender? Taxpayers? Will the lender ever be able to sell the house or just rent it forever at a loss? What if one can't make their car (or boat) payments, should they be able to keep it and rent it from the lender? Other than raising FHA limits, our government should stay the heck out of this fiasco which they helped create. Let the maket correct itself. If these folks were defrauded by teaser rates let them sue the mortgage companies,if not they should bear the problems of their own making. How many of these people lied on their no document loan applications? There is no free lunch and its time to pay the piper.
I am for solid reform that eliminates a lot of the “shark” behavior of the “WS” crowd. I don’t like bailing out the well connected who have taken advantage of the “stupid”. A fair profit based on sound economics is fine. When you watch cable shows like “flip this house” and see the unwarranted increases for marginal to no improvements in a property, you wonder if sound economics is possible in this country. PT Barnum seems to rule.
Time for a tax reform along with a tax cut — don’t take the money away in the first place.
This is a complicated situation that has lots of aspects. To the extent that government agencies like FHA and FReddie and Fannie have performed a function of buying mortgages and regulators saw weaknesses in their governance, they capped their activity and that put the brakes on, it squeezed the market and created a credit crunch. The caution seems wise. The inaction of Congress and their obsession with imaginary and feel good laws instead is negligent.
Consumers have short and long term memory loss. Remember the real estate markets in 1977, 1987, 1992? Same scenario, but back then, higher default rates...did it impact the economy...yea...but this current default phase is way lower than in those years...with an expanded real estate market to boot! This whole bail-out frenzy is political in nature...has nothing to do with solvency.
A lot of people in Florida have higher monthly escrow for property taxes and insurance than their actual mortgage payments.
I have to laugh. Many of us oldsters saw this coming. A year ago I decided it was time to make a move I had deferred for years. I offered half the asking price and it was quickly accepted in fifteen minutes. When I shared that on a thread here, younger know it alls called me a liar. History repeats itself.
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