Posted on 09/19/2010 8:02:18 AM PDT by blam
Momentum Gathers For A New, Massive Bailout Of Homeowners
Joe Weisenthal
Sep. 19, 2010, 8:48 AM
A new federal program that would be tasked with a massive refinancing of mortgages for strapped Americans has been chattered about for awhile, though The White House has never indicated that the idea is on the table.
But the calls are growing louder. This time it's from the NYT op-ed page, where former Bush advisor (and now Columbia business prof) Glenn Hubbard along with Columbia's Chris Mayer are calling for exactly that -- a massive new agency to bail out underwater homeowners via refinancing.
You can read the op-ed for details -- Hubbard and Mayer anticipate $50 billion in annual savings for homeowners -- though the one thing that's not there is principal reduction. So underwater homeowners under their plan -- though receiving lower interest rates -- would still be underwater.
That being said, at least they'd be able to refinance, which they can't easily do right now, so that would help.
Anyway, nothing like this is going to happen soon, but Obama needs to pull off something like this to start gaining momentum for 2012, and our guess is that this won't require any Congressional approval, because it could be done through the GSEs, with plenty of funding from Treasury and the Fed.
[snip]
(Excerpt) Read more at businessinsider.com ...
No principle reduction?
So who in their right mind would refinance a $150K loan on a property worth $90K?
Oh wait- THE GOVT!
The only "sustainable" solution is to allow housing prices to fall to realistic levels, but we can't let the market do something that the federal government can screw up some more.
Let the government buy me a house and put the deed in my name.
Since I'll have no mortgage, the government won't ever have to worry about me defaulting on my mortgage.
I'll never again be a default risk to the banks or to government.
Same here.
Why should you pay?
Because you’re as schmuck that’s why, as are all financially responsible people in this country.
Galt’s Gulch is going to be mighty crowded.
I’m to the point where I say DO IT.
Crash this economy in one big supernova.
I’m tired of this piecemeal crashing.
Why is it that everything is "Bush's Fault" and yet when they want some pundit to have credibility they point out the "former advisor to Bush" crap?
The left just makes no sense on any level.
You owe property taxes every year. Guess who owns it if you don’t or can’t pay? Property ownership went away when the government began taxing it into perpetuity.
I own my acerage and home free and clear. I agree with you.
You and I did this the "right" way. Why should we have to pay to help some losers who were fools and bought more house than they could afford? Actions have consequences.
“This is simply a way of harvesting all those poorly documented securitized mortgages the courts are throwing out...essentially giving the house to its owners.”
Roger that.
Guess again.
“If you have a mortgage, your not a homeowner.”
Even if you do not have a mortgage, if you pay Land Rents, known as Property Taxes, you are not an owner, either. You simply bought the rights to rent the land. You do not own anything where you must continue to pay someone.
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