Posted on 08/05/2010 6:39:02 AM PDT by Daisyjane69
Edited on 08/05/2010 6:53:02 AM PDT by Admin Moderator. [history]
James Pethokoukis hears rumors of an August surprise coming from the White House, one that will attempt to win backs the hearts and minds of voters dismayed at the failing economic policies of the Obama administration. With the government fully in control of Fannie Mae and Freddie Mac, Barack Obama may issue an order to forgive portions of underwater mortgages processed through the GSEs, where negative equity approaches $800 billion overall. Some financial houses have begun quietly preparing for the possibility:
Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.
The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. …
Boy, I feel foolish for paying off my mortgage now!
I pay my bills
Where My cheese????
Then next thing you know, he will declare our Official Language is Swedish.
I have mixed emotions about this, as I am one of those people who are upside down on my mortgage. Not because I’m a slacker or anything like that.
I bought my property at or near the peak and have since lost my job as VP Sales of a small software company that has gone out of business. I’m still making my mortgage payment out of my savings account, have never missed a payment and don’t plan on missing a payment even if I have to cash in 401k plans, IRA’s, etc.
I have never taken government assistance on anything. But the idea of getting back above water on my mortgage is very attractive. And no ... it would not change my hatred of Obama and I will not vote for him. But I know for me, it would have a huge impact on my current financial situation.
It’s Not Cho Cheese Man!!!
Ok...but still...why should I have to pay...for your choices.
Next he’s going to propose we change the country’s name to Zimbabwe West.
Exactly right... and as I recall they also shielded Fred and Fanny from congressional inquiry, making what they're trying to do easier to get away with.
huge impact on my current financial situation.
Temporarily. Long term you would end up living in a tent in Obamaville.
</DREAM ON>
Being underwater mostly doesn’t come from being a deadbeat, contrary to the posters who are implying that. Mostly it comes from living in a Blue state, buying overpriced property during the bubble or refinancing during the bubble, then watching the value get cut in half or in third. It is still irresponsible behavior and should not be bailed out.
My one question is: On one hand we have trillions of dollars of debt but only so many assets. The debt keeps growing but the assets do not. There MUST be a breaking point somewhere, sometime.The Feds are making $’s out of nothing. The buck has to stop
“Ok...but still...why should I have to pay...for your choices. “
You shouldn’t, that’s where my mixed emotions come in. I am a true conservative and feel the same way you do.
Seems being a responsible citizen is for suckers like me!
I hear ya, loud and clear.
I read this as only forgiving the underwater portion of the mortgages, which is BS. We live in a nation where people are never held responsible for their actions.
We have been good and not spent like drunk sailors, saved for the girls college educations , our retirement and no credit card debt. Yet our neighbors rack up 60k in credit cards, to have half of it erased, took out second mortgages to put in pools and take vacations. I have to admit, I am a bit green with envy, we want a pool and sunroom so we can enjoy the summers by our pool. But no, we have to watch folks who break the rules get the rewards.
anyone who takes a free cheese mortgage buydown- is rendered powerless to protest govt overspending
clever, eh? The more people you make part of the problem, the less people you have who can resist or protest the problem
...that’s exactly what i was thinking....
Well said.
Also, who get’s the ‘title’ of the forgiven mortgage? I’m betting OhBummer wants title to every residence and every pice of property privatly owned
Your are diligent and responsible contrary to my blanket assertion above.
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