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 ...
Give me a call with your full name, address, date of birth and SS#. Oh yeah and your bank name and account numbers w/ PIN.
867-5309.
;)
This makes no sense mathematically. Why not just give 9 million mortgage holders $1 Million each and we’d SAVE $74 billion, $991 million!
Or give 300 million people $1 million each and still save 74 billion and some change!
This is going down hill fast! If this asshat president thinks he’s going to keep people in their homes who never could afford it with my tax money, he can go to hell!
Those of us who were prudent and bought less house than we could afford will, of course, have to pay for those who bought more house than they could afford.
I can have sympathy for someone with a long-time affordable mortgage who lost a job and is facing foreclosure. That doesn't mean I want taxpayer money going to them, but at least I can understand their predicament.
I have no sympathy for those who used interest-only loans or 3-year ARMs to buy far more house than they could have afforded with a conventional mortgage. Yet it's these people who are receiving the Federal aid. All that at the expense of those of us who, as Clinton used to say, "worked hard, paid their taxes, and played by the rules".
Better do that multiplication again.
Foreclosed homes can be sold to people who have saved their money waiting for a time they could afford to buy a house!
We’re looking at the person who got this country sick in the first place to cure it with his voodoo economics. Reminds me of the mothers who get poison their children to get credit for curing them.
http://spectator.org/archives/2008/10/29/acorns-food-stamp-mortgages/print
Translation, maximally reduced, for each appearance on stage in the role of Obamessiah, in the illuminati anti-bible:
Every single word you heard, I promise you I will screw it up real soon.
I can’t imagine that the Govt can have any oversight, transparency or accountabiity on this. This is just tooooo complicated and too massive. Obama is in dream land with this idea of co-operation with Freddie & Fannie. There is not enough money in the whole bailout amount to help this situation.
I can’t believe they are going to withold the bailout money from the mortgagers unless they “adjust” all of these foreclosed mortgages. They will probably do it for very few homes and then set these examples up as what is being done all around the US.
Not nearly as much as we will after he gets all of his spiffy plans enacted.
“Foreclosed homes can be sold to people who have saved their money waiting for a time they could afford to buy a house!”.....
Think again! Zero doesn’t want that! He’s going to turn all of America into a ghetto with your tax money! Just take a drive through any Indian reservation and check out the homes and neighborhoods....thats our future!
Because the poor getting loans being solely responsible for this disaster is not supportable, and not repeated outside the conservative talk show echo chamber. In that echo chamber the economy was great last year until the bust, then it was CRA that caused the bust. The big problem the general public got in on the boom buying rentals and re-financing all the paper equity they never earned out.
That is the dark side of human nature, to party in the present, at expense of the future. That happens publicly (nation debt, printing money) and privately, spending money we think we have we never earned(internet boom, housing boom equity) , partly because everyone else we know is. No one warns what ‘has to happen’ , ‘how it must end’,that it is Ponzi ,because the warning could hasten the crash. So each rally they are always new suckers that were not killed during the last crash and lured into the new bubble. We are always told ‘this one is real’
Schiff hits on one thing, lowering interest rates to effectively negative to stimulate the economy through inflation and redistribution causes long term problems and promotes the WORST in us, that dark side. We keep on seeing these equity bubbles blow up over and over. Each time we are encouraged by everyone, everyone! to speculate and consume and not save. The government is growing massively during both phases of bubble boom and bust, and we are encouraged to live life for the moment. And it's both party's, and all the investment experts and economists advise us to consume and borrow and speculate.
Obama and the majority in Congress are socialists, and socialism is the enemy of capitalism and freedom.
2.7 trillions and this still an incredible number
mothers with bastards....
deadbeats with huge mortgages...
With taxpayers dollars...
THIS IS THE CHANGE the messiah followers are looking for...
I miss Carter. I also miss GWB. This guy scares me more than the two former
Your point is still valid. Bush did promote poor minority home ownership and he gets no positive credit for that from anyone, but gets all the blame for crash. A lesson to the next Republican president that tries to buy love from public.
REWARD...
mothers with bastards....
deadbeats with huge mortgages...
With taxpayers dollars...
THIS IS THE CHANGE the messiah followers are looking for...
Exactly!...The rich liberals don’t give a crap because they pay no taxes and they have thier money in protected accounts out of the country.
By the time 0 gets the $75 billion filtered through bureaucracies and banks, there will be a few thousand apiece for people with mortgages they can’t afford. Watch how quick the money disappears into a black hole.
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