Posted on 02/18/2009 9:22:44 AM PST by sickoflibs
PHOENIX - President Barack Obama’s plan to tackle the foreclosure crisis will spend $75 billion in an effort to prevent up to 9 million Americans from losing their homes.
In tandem, the Treasury Department said it would double the size of its lifeline to Fannie Mae and Freddie Mac. The government, which seized the mortgage finance companies last fall, said Wednesday it would absorb up to $200 billion in losses at each company.
The plan, which Obama is releasing later Wednesday, is more ambitious than initially expected — and more expensive. It aims to aid borrowers who owe more on their mortgages than their homes are currently worth, and borrowers who are on the verge of foreclosure.
“All of us are paying a price for this home mortgage crisis,” Obama says in a prepared text of remarks scheduled shortly after 12 noon EST Wednesday at a Phoenix area high school.
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
(Excerpt) Read more at msnbc.msn.com ...
If you realize both parties in Washington think our money is theirs and you trust them to do the wrong thing, this list is for you.
If you think there is a Santa Claus who is going to get elected in Washington and cut a few taxes and spend a few trillion and jump start the economy, and get our lost money back, this list is not for you.
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Darn! I just refinanced.
The One Is On!
The idolatry is stunning!
Why didnt I buy a bigger house with a subprime mortgage? Why did I put a down payment down?
“All of us are paying a price for this home mortgage crisis,” Obama said in remarks prepared for delivery at a ceremony announcing the program at a Phoenix area high school.
I have a few stocks that are worth less than what I paid. Is the gov’t going to get into the business of making these investments lucrative also?
Stop paying your mortgages and bank the money until it’s clear what this stimulus package will mean to homeowners. it looks like people who make their mortgage payments on time and in full will be screwed as benefits go to people who, by virtue of being behind on their bills, can demonstrate they need “relief”.
It's Brother Love's Travellin Salvation Show!
sw
Rush is talking about this now. This is only going to help the idiots who knew they couldn’t afford their damn house anyway!
The bad news is that at 31% of income the number of payments exceeds the expected lifetime of the mortgagee! Don't you just hate math?
Regards,
GtG
Man, what a sucker I am. I make my mortgage payments each month, on time. I should have stopped making payment and the guvmint would have taken care of it for me. What a country!
I know it seems like rewarding people for getting in over their heads, but do you want to live next door to a foreclosed house? Foreclosure gives looters, rapists and drug dealers a place to do business.
To all those who have stupidly lived within their means, paid their taxes, obeyed the law, I have one word: SUCKERS!
RE :”The bad news is that at 31% of income the number of payments exceeds the expected lifetime of the mortgagee! “
Could you spell out the math for us please? Thanks
If each 9 million defaulters home was worth $300,000 that number really comes out of $27 trillion.
No sh!t, Sherlock.
Is there still time to take out a mortgage?
My house is already paid for.
Time to buy even more ammo.
I understand the disgust but I had an additional thought after hearing the details of the plan on the tube this morning.
The plan is only for Fannie/Freddie compliant loans, only loans under 415, only helps for the portion of the loan that is in excess of the house value, only serves as an incentive to the lender, not a requirement...etc, etc.
I think this will be used for only certain select instances and as a program will have half its cost eaten up by the Federal staff trying to administer it. I think it will solve a tiny percentage of the problems out there a a nice big cost — sounds like a Democrat plan to me — all show and no substance at a big government program cost.
Say farewell to the concept of moral hazard.
Say farewell to individual responsibility.
A new government agency for deadbeats. This will make Freddie and Fannie look like child’s play.
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