Gov't launches plan to help "underwater" borrowers

AP on Yahoo ^ | 9/7/10 | Alan Zibel - ap

[NormsRevenge]

WASHINGTON – The Obama administration is trying to jump-start its sputtering attempts to tackle the foreclosure crisis with an effort to assist homeowners who owe more on their properties than their homes are worth.

The Federal Housing Administration will allow lenders to give these borrowers refinanced loans if the lender agrees to forgive at least 10 percent of the original mortgage amount.

The plan, .. announced in March, .. available starting Tuesday.

The FHA said .. between 500,000 and 1.5 million homeowners are projected to be helped.

[NormsRevenge]

helped. helped to excess. if need be. -- Big Gubamint way in over its head in your business.

[BenLurkin]

Hussein is insane.

[Responsibility2nd]

“The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’”

~ Ronald Reagan

[tacticalogic]

The Federal Housing Administration will allow lenders to give these borrowers refinanced loans if the lender agrees to forgive at least 10 percent of the original mortgage amount.

Is there some reason the lenders can't do this now? Why do they need the FHA's permission to forgive part of a loan balance?

[concerned about politics]

Administration will allow lenders to give these borrowers refinanced loans if the lender agrees to forgive at least 10 percent of the original mortgage amount.

The regime will allow lenders to lose money?
Isn't that elitist of him.

[RocketRoland]

Obama is going to drown America in debt and create a new Third World Country for our grandchildren. He is borrowing and sending money overseas to those he answers to and represents.This traitor needs to be impeached he forces the American worker to bailout those who do not work and expect everything to be handed to them. It is called living within your means.

[concerned about politics]

Why do they need the FHA's permission to forgive part of a loan balance?

Because the regime took over the banks with the bank bail out. Banks are now the property of dictators.

[Painesright]

We increased our residential mortgage debt from $5 trillion in 2000 to over $11 trillion in 2007.

In 7 short years, we increase our residential mortgage debt BY $6 trillion.

To say it was a bubble of epic proportions is to give meaning to the word understatement.

Real estate became a national mania.

People on all sides of the political spectrum participated. There is more than enough blame to spread around.

The bubble has burst and it is a long, long way back down to earth.

ANY home bought (or cash-out refinanced to the hilt) during that time is most likely underwater right now.

Trying to re-inflate the bubble is insane.

Paying for it with taxpayer money is criminal.

Programs like HAMP are the epitome of throwing good money after bad.

It is MORAL HAZARD writ large.

Not to beat the cliche horse to death, but you cannot put the genie back in the bottle.

The bubble burst. Stop throwing good money after bad and let the rebuilding begin.

But this time, build on healthy free-market based principles.

Keep the government out of it.

Anyone who would like to verify the numbers I quoted above can go to this US Census Bureau link and click on the PDF for “Mortgage Debt Outstanding by Property Type and Holder”

You will find the numbers I quoted there. They are 100% factual.

Our residential mortgage debt went from $2.6 trillion in 1990, to $5.1 trillion in 2000, to over $11 trillion in 2007.

http://www.census.gov/compendia/statab/cats/banking_finance_insurance/payment_systems_consumer_credit_mortgage_debt.html

If the link does not work, just do a search for: US Census Bureau Mortgage Debt Outstanding by Property Type and Holder

[VRWCmember]

Oh heck no! Everytime the government tries to help credit consumers out I just get screwed over by the banks and credit card companies more.

[dalereed]

Theft from every responsible citizen by irresponsible leaches!

[freedumb2003]

Hey, I was responsible and used my home as a — GASP — HOME! And then — GASP AGAIN! — I paid it off not only as agreed but even faster!

If I could have my 10% cut in its price, I would own it today.

Oh, wait, I forgot — liberals only reward sloth and bad decisions, not industriousness and thoughtful analysis/actions.

[paul51]

if you are not underwater on loans will they give you a chevy volt instead?

[Palter]

'an effort to assist homeowners'

Orwell.

Homeowners don't have a mortgage and actually own their home.

[Right Wing Assault]

Hi, We’re from the gummint. We will help you with your payments by giving you money we take from other people and from their children who are not even born yet. How does that deal sound? Pretty slick, huh? And WE get credit for helping you out!

[Incorrigible]

Where’s mine?!

[count-your-change]

There is also the possibility that the banks will want to be reimbursed for what they “forgive” and then some plus adding on some more fees for their service and who knows what will be in the fine print that goes unread until the whole scheme blows up.

Get the feds to back the scam and the blame can be spread more thinly when it fails.

[OrioleFan]

The Chevy Volt is the new toaster. So go open an account at your local Obama-owned bank.

[tacticalogic]

Because the regime took over the banks with the bank bail out. Banks are now the property of dictators.

So the government regulators or telling the banks they have to forclose, and then the adminsitration is telling everyone the banks are the bad guys? That sounds about right.

[tacticalogic]

Because the regime took over the banks with the bank bail out. Banks are now the property of dictators.

So the government regulators or telling the banks they have to forclose, and then the adminsitration is telling everyone the banks are the bad guys? That sounds about right.

[Drill Thrawl]

I feel like a total fool everytime I pay my mortgage.

It's true, doing the right thing is often painful.