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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 ...
I’m fairly sure I heard him correctly.
The question is, will the media report the facts so people even have the opportunity to be outraged?
I think we both know the answer. I know I have enough outrage today for my whole freaking little town. This IS insanity!
That Barack Obama supports a 75 billion dollar home bailout, or that John McCain as a candidate supported a 300 billion dollar home bailout.
I think I'll go with "both".
Senator McCain: Now, we have allocated $750 billion. Let’s take $300 billion of that and go in and buy those home loan mortgages and negotiate with those people in their homes, 11 million homes or more, so that they can afford to pay the mortgage, stay in their home.
Now, I know the criticism: what about the citizen that paid their mortgage payments? It doesn’t help that person if their next door neighbor’s house is abandoned. And so we’ve got to reverse this. We ought to put the homeowners first. And I am disappointed that Secretary Paulson and others have not made that their first priority.
2008 3rd Presidential debate against Barack Obama, October 15, 2008
It seems that the woman in Florida who said that Obama is going to pay her mortgage got her wish.
And her gas for her car....don’t forget that!
ping 142, McCain RINO alert from mountainbunny
She is going to get her car gas as well.
FYI, post 142, repeated here verbatim:
Thanks to sickoflibs for the ping and mountainbunny for the astute observation.
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I don’t know what is scarier...
That Barack Obama supports a 75 billion dollar home bailout, or that John McCain as a candidate supported a 300 billion dollar home bailout.
I think I’ll go with “both”.
Senator McCain: Now, we have allocated $750 billion. Let’s take $300 billion of that and go in and buy those home loan mortgages and negotiate with those people in their homes, 11 million homes or more, so that they can afford to pay the mortgage, stay in their home.
Now, I know the criticism: what about the citizen that paid their mortgage payments? It doesn’t help that person if their next door neighbor’s house is abandoned. And so we’ve got to reverse this. We ought to put the homeowners first. And I am disappointed that Secretary Paulson and others have not made that their first priority.
2008 3rd Presidential debate against Barack Obama, October 15, 2008
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This cannot last. Everyone in DC is INSANE. The spark to chaos is near.
Just more of my great-grandcholdren’s income flushed down the rabbit hole. Zero’s definitely the Cheshire Cat. All grin and nothing else. I am heartbroken.
Bipartisan effort to keep ILLEGAL ALIENS in the homes Bush gave them in 2002’s “Ownership Society”. Making the case for amnesty... “can’t” deport ILLEGALS who have jobs, home mortgages, auto loans, etc. Of course, pandering to them from the get go is what caused the crisis to begin with.
“Americans also understand fairness and this is not going to fly, not going to fly.”
I beg to differ. American’s DID and WILL let this fly again. Those in trouble with their mortgages now were GIVEN them by banks who, under Bush’s “Ownership Society” agenda, allowed downpayments with Section 8 housing vouchers and NO social security numbers. We let it fly then (2002)(Republicans APPLAUDED it, actually), so, it will fly again.
What do you mean 2002 Republicans “APPLAUDED” it?
Same way Bush did in 2002 when loans were given with NO SSN’s and Section 8 vouchers as down payment.
Am I missing something? Since when is it that you buy a house and the value goes down it’s someone else’s problem ? What the hell is that about? Anytime you buy a house you run the risk that it may go down in value
I am doing research, let me state now.
But I have never heard, not ever and it makes no sense at all, of Section 8 public housing vouchers being used as cash, essentially.
Although I am googling. I did find reference to Bush’s speech that contained the phrase “ownership society” but that’s all I am finding so far, the phrase in a speech. Not a big program like the Great Society or some such.
Again, I could be wrong.
I continue to Google but Section 8 does NOT give out vouchers, normally. They pay the funds directly to the renter.
You are blaming this on Bush and the concept of using section 8 vouchers for down payments, if true, was a really dumb idea.
But he’s hardly the least of the politicians to embark on this notion of forcing responsible home ownership on those who simply are not mature/intelligent/self-disciplined enough to be one.
It’s like the homeless. Every once in a while some noble person embarks on a mission to put all the homeless into proper homes.
It never works. Because many, if not most of the diehard homeless WANT to be homeless.
But to get on a soapbox and blame this on Bush....
And I still don’t think it’s going to fly.
Your mileage may vary....
The plan is socialism, the objective of which is to destroy capitalism and freedom. It’s also a program designed to buy votes for the DemoSocialists.
Aside from that, at least half of the hundreds of billions to be spent by the federal government will be completely wasted, since half of the debtors will default all over again.
Congress continues to violate the Constitution by taking my money/income/property and giving it to someone else. Socialist Security does the same thing.
How was I supposed to know that America would elect a communist dictator who would allow me to write down such a huge mortgage? I feel taken advantage of...
I’ll sell Obama my worthless 401K for the price it was valued at right before the Democrats took control of Congress Jan 2007!
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