DIMS--Happily throwing OUR money around!
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 ...
This will include reducing PRINCIPALS!
Say farewell to capitalism.
What does this mean by “It will not cost the taxpayer anything”?
You think you are a sucker, I paid my mortgage off last week, 14 years early.
To your point, obviously letting the bad debt being written off as losses has bad consequences(this is really the consequences of what proceeded the crash). That is the justification of all these measures since Sept 2008(Bush+Obama) . What is never asked is all the negative consequences of bailing out those who made the worst decisions, to get help to the innocent but unknowledgable that bought at peak.
I appreciate you taking the contrary point, for debate
Had a look through the constitution to try and find the part where it authorizes the federal government to stick its enormous hand in the pockets of citizens in order to pay the mortgages of those who can’t do it themselves. Couldn’t find it.
But, then, the constitution’s become something of a joke these days, anyway. Clearly, no one in congress takes it very seriously. One wonders, in fact, if anyone on the hill has even read it; it’s highly unlikely that the president has done so.
Something has been puzzling me ever since the whole Freddie/Fannie debacle:
Barney Frank and Chris Dodd and every other leftist has been trying to convince us that this is “everyone’s” fault, that there is “blame to go around” and all that.
The dems have consistently portrayed the Republicans as mean, poor-hating richbots who have done nothing to help the poor, right?
So how can the Republicans be against the poor and at the same time are equally responsible for helping poor people who can’t afford them get mortgages they can’t pay for?
LOL. So far the only industries that have boomed under Obama are ammo and gold production.
And where would that 27 trillon really go?
The 80%..give or take..who are paying their mortgages..may well wake up and take out their anger in the voting booth in 2010
“Obama to unveil $75B mortgage relief plan (Why didnt I buy a bigger house??)”
You had the wrong ‘profile’
“Time to buy even more ammo.”....
I agree!...This is going to hell fast!
The democrats got these borrowers into this mess and they know it. Now they have to keep propping these dead beats up or they will lose their votes in the future. That’s the method to the madness.
What about all of the people who refinanced with a large cash-out and then spent it on high priced toys making them unable to keep up with the payments? Are they going to have their principal reduced?
When I drove my car off the lot I owed more than it was worth. Can I get you to make the payments for me?
My home and 8 acres is paid for, I have absolutely no plans ever to use it for anything, no loans, no mortgage, nothing ever.
I believe a home should be paid off as soon as possible.
And leave it alone, too many ways to lose it.
It SEEMS like rewarding people for getting in over their heads? What do you mean by "seems like?"
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