Skip to comments.Obama Administration To Extend Mortgage-Free Living For America's Unemployed To One Year
Posted on 07/07/2011 8:59:22 AM PDT by george76
various big banks are dealing with the Option ARM cliff is by enforcing outright mortgage debt forgiveness, in some cases as large as 50% of the total principal. Which is why it should come as no surprise that the administration, in dealing with the lack of an unemployment cliff, has decided to extend foreclosure-free living for unemployed homeowners from a few months to a year...
The administration today will announce that two programs providing unemployed homeowners a few months' forbearance on their mortgages will be extended to 12 months, said three administration officials speaking anonymously because the program has not been announced. Thousands of homeowners could benefit from the additional time, although not all jobless homeowners will be eligible. The action is being taken as part of the administration's effort to help prevent foreclosures while unemployment remains above 9% and the economy struggles to rebound." What would be great if in addition to such openly socialist policies the administration would enforce the implementation of sinking funds for said unemployed workers, who instead of taking unemployment benefits from the government and converting it into less than edible iPads, would actually set aside money for that eventual mortgage payment.
when the US consumer no longer has to spend any money on the biggest traditional use of capital, housing, the alternative is everything else.
in Obama-style economics zero sum is no longer relevant.
The revised programs are intended to be a win-win for borrowers and banks, which can avoid having more homes go into foreclosure by giving borrowers more time to pay.
(Excerpt) Read more at zerohedge.com ...
Mortgages are one thing, paying the compounded interest on the loans after the year is what will kill them.
I would love to see the ethnic demographics on this population.
Spread the wealth...hoope and change....reparations.
Spread the wealth...hope and change....reparations.
I had the same exact thought.
What else can you do? When you have the MILLIONS of lost jobs; not only have the jobs gone away - the wages that people used to make, are gone too. Simply stated; even *if* you find another job, the chances are that you will take a substancial cut in your income (not counting the months of near-zero income).
So, what do you suppose we do? Let the house sit empty and become infested with mice, develop roof leaks and rot?
Until we get rid of the Libtards that have sabotaged this country; things will only get worse.
THE AUDACITY OF HATE - Obama & Pastor Wright’s Racist Church
“Mortgages are one thing, paying the compounded interest on the loans after the year is what will kill them.”
Like our National Debt, it won’t be paid.
All we need is “gas stamps” (a la food stamps) to bring this to fruition.
I look at this in great bemusement. Big Banking begged to be bailed out, and WAS bailed out, by Uncle Sam both under GWB and BHO, mostly BHO. Now the squeeze is being put on them by the bailer-outers for a quid pro quo. Is it immoral? Would it be wrong to accept a kickback from the guy who had his hit man rob you earlier to prop up his business? Especially if the hit man muscled the kickback out of him?
only certain minority groups are allowed to benefit.
flyover country applications are DOA.
Looks like peggy was right.
“I would love to see the ethnic demographics on this population.”
I would assume it’s spread pretty evenly.
Well, people need to be reminded that this is like getting tipped by someone who robbed you. Takes some of the sting out of it, to be true, but wouldn’t it have been better had the robbery not happened at all?
upto 50% forgivness on PRINCIPLE??!!
I can only hope and pray that there is a special place in hell reserved for Jeremiah Wright and friends.
“I would assume its spread pretty evenly.”
Spread evenly, as long as the applicant is not a registered republican.
“The America of my time line is a laboratory example of what can happen to democracies, what has eventually happened to all perfect democracies throughout all histories. A perfect democracy, a warm body democracy in which every adult may vote and all votes count equally, has no internal feedback for self-correction. It depends solely on the wisdom and self-restraint of citizens which is opposed by the folly and lack of self-restraint of other citizens. What is supposed to happen in a democracy is that each sovereign citizen will always vote in the public interest for the safety and welfare of all. But what does happen is that he votes his own self-interest as he sees it which for the majority translates as Bread and Circuses.
Bread and Circuses is the cancer of democracy, the fatal disease for which there is no cure. Democracy often works beautifully at first. But once a state extends the franchise to every warm body, be he producer or parasite, that day marks the beginning of the end of the state. For when the plebs discover that they can vote themselves bread and circuses without limit and that the productive members of the body politic cannot stop them, they will do so, until the state bleeds to death, or in its weakened condition the state succumbs to an invaderthe barbarians enter Rome.”
Robert A. Heinlein
I know at least one family who got into trouble with one of these gov’t programs. They approached the bank about the gov’t program, the bank gave them a reduced amount to pay until they finished the paperwork, this took months, then the family was told they didn’t qualify, so come up with a huge sum from fees, interest, and penalties for late payments, or we’ll foreclose.
Last I heard the house was in foreclosure.
meanwhile property taxes and property insurance are both going up so house payments are going up too while wages and employment are going down. My house payment just went up $60 a month because of the tornadoes down south (supposedly) and because the dumba55 voters in my county voted for a tax increase. when will this end? How long until my original $600/month payment is $700/month? 800/month$ $1000/month?
I understand the sentiment, and I don't necessarily have a better plan to put forward that would create short-term benefit.
However, it needs to be said that the Socialists have created a broken economic and political system. That's why we are in the mess we are in. And the solution? Why of course! The solution is more Socialism!!! People are suffering! Send them a check! Or pay their mortgage! or forgive their debts! We've got to do something!!
What else can you do?
Well, the real solution is to accept the fact that there is no soft way out of this, and accept the fact that pain and suffering is inevitable. The real solution is harsh, and involves some people being very, very poor, and losing their houses, and having ruined lives.
That's not what I WANT -- but it is the only solution, other than a more emphatic embrace of Socialism. And I would argue that Socialism inevitably results in the pain and suffering, so you cannot avoid my "pain and suffering" scenario by choosing Socialism instead of pain and suffering.
>I would assume its spread pretty evenly.
BAHWAHhahahaha, choke, snort. Ah yes, the Audacity of Hope indeed. - and in mortgage...
Here's an idea. Let's adhere to the founding document in this country. It's called the Constitution of the United States of America.
I just looked, and I can't seem to find a "jobless mortgage relief" clause entitling the federal government to take my money and give it to those who don't work for whatever reason. I know that sometimes bad luck has a way of finding everybody.
The Founders of this once-great union of states knew this, too, and knew human nature better than nearly everyone today. Because of this, they knew that people, when their risks are backstopped by someone else, engage in riskier behaviors, like buying above their means, not saving money for a rainy day, and not working hard enough at their education and training to get a good job or carve out a profitable niche for themselves. Therefore, they intentionally omitted a "help out the unfortunate" clause in the Constitution. They knew that people would be better off in the long run if they knew there was a very weak (or non-existent) safety net, and designed the Constitution accordingly.
The best way for people to get back to work is to reduce the multi-year unemployment benefits, welfare, subsidized housing, food stamps, free education, free phones, and free cars with free AAA, insurance and repairs.
Kick the illegals out of the country and there will be a lot of jobs available. Nobody will take them as long as they're getting a free ride on the gravy train.
Don’t be surprised if there’s a mandate there to have all late fees, penalties, and interest waived for that one year period.
And we mocked her for being stupid. I guess we know who the really stupid ones are now. That would be us.
WOW, Bread and Circuses. Going on my FB. Thanks.
Bear in mind; that the concept of 40 acres of land, a mule and ‘be-holden to no man’ was the way life was back then. Simply stated, this basic concept is no longer valid, in today’s world. You cannot set up camp on the range, and live off the land - ANYWHERE in the USA. Go ahead, drive, walk or crawl into the middle of no-where; build a cabin, hunt a couple deer and see what happens.
We are more populated, we have a standing army, we have created a whole class of parasites (non-taxpaying citizens and illegal aliens) who are ‘entitled’ to food, shelter, clothing, transportation, medical care that his higher than what many ‘producers’ can afford to buy for themselves.
When these people bought their house, a vast majority of them underwent a financial probe into their credit history, their foreseeable ability to repay the loan, their past employment history, their salary history - all based upon the best data available. Unfortunately, we cannot see the future as well as we can see the past.
Now, we have upper-middle class people who lost jobs they held for decades; the jobs are simply GONE. They applied and were approved for loans, based upon years, decades or a lifetime of good decisions. Zero gave the banks BILLION$ of taxpayer dollars - which the banks transferred overseas, rather than use that money to the purpose for which it was entrusted.
Now, we have families that are earning 50% or less of what they were earning just 3 years ago. They have no savings - what they had was invested in getting them into their ‘dream’ home; or if not consumed in getting them into their home, has been since consumed in trying to work with the bank to keep their homes. Bottom line - as long as you are current on your house payment; the bank has no interest at all in working with you on your mortgage. When you are late, the bank uses the excuse that your late payment disqualifies you from financial assistance. It’s predatory. The bank thought that if they foreclose today, they can re-coup the loss when they take possession of your home. The mistake they made was mis-judging the scope of the foreclosures. When you have a surplus of homes on the market - the prices plummet. A house that was foreclosed on for $500K last year can easily be had for $300K today. I’m seeing homes in my area that were selling for the $600-750K range just 3 years ago; sitting empty with a sign on the front advertizing them for $325K. It’s only going to get worse.
So they are going to dump this time bomb on the next president in 2013?
If Clinton can raise taxes retroactively, the next president can issue a retraction of this immediately and retroactively.
We are going to take the blame anyway, so let’s do the responsible thing.
If, while current, you convince the bank you’re serious about walking away next month if it can’t write you a break, they will probably give you that break. Especially if they can see copious signs of trouble like credit card and utility dings. Now of course a plotting dead beat could do the same thing while secretly sitting on a stash of cash.
If they can do this for homes then why not extend it car loans.
At least with a home the owner has a chance of appreciation on the asset and maybe some profit.
A car, however, is a declining asset both in terms of capital depreciation and continued costs for maintenance or Cost of Ownership.
The net present value will continue downward but if the cost of servicing the debt remains the same....
Blah, blah, blah....
Land of the Freeloaders. Home of the Depraved.
Buy Now, No Payment till November 7, 2012...
But now that wealth is funneling down to certain segments of the population. I guess it’s all going according to plan. Maybe every homeowner in America should just stop making their mortgage payments for 180 days. That way, the funneling of wealth gets equally spread.
Make a photocopy of your union card...send to bank or mortgage company and you’re good to go.
Yep, in the case of this country, this tipping point feels as if it’s already happened. Bad news for people who work for a living.
My position is that the Constitution not only should, but must, be a strict enumeration of the rights of the federal government, not only in the area of income redistribution, but in every aspect of government. This country has changed considerably since its founding, both for better and for worse, but human nature has not changed one iota. People, by and large, will take what is given and ask for more. If one is given enough of anything, over a long enough period of time, his behavior will change completely. (This goes for financial institutions and corporations as well as people.) The federal government has no right whatsoever to redistribute income. None.
But, what do you do with the homes that people have put money into, have taken a loan out against - and have lost their jobs? Do these homes sit empty, and be allowed to rot? Many homeowners (I won't be so bold as to give a percentage) invest money into their home, add a hot tub, improve their workshop, paint the bedrooms, upgrade cabinettry. These 'improvements' consumed both time and money. This is time and money that is lost by the homeowner. It's not like the homeowner has zero investment in their home; and then intentionally had their company lay them off. What do you suggest? It's a lose/lose situation. Given bankrupcy laws - many people can simply declare bankrupcy; and either keep their home, or have the loan re-accessed to their current income level.
But, as you wisely pointed out - the cause of this whole mess is that Gov't appointed itself the task of 'wealth re-distribution'; and we are all reaping the benefits of this insane and unconstitutional abuse of power.
He says a year now, but as the election approaches, watch for that time to be extended to cover the election.
Inflation has really hit the vote market hard.
You asked what to do with homes on which people can no longer afford the mortgages, even through no fault of their own. This issue should be between the lending institution and the mortgage holder. If the lender wants to foreclose, they probably have that right, given the mortgage contract. If the lender wants to reassess, that’s also a possibility. If the lender wants the house to sit empty and rot, that’s their choice, too. Lots of bad things happen all the time to the most wonderful people on the planet. People get cancer and die. People start businesses and go bankrupt. People invest in, and improve, homes and lose their jobs and houses. The government has no right to take my money and a) give it to lenders, or b) give it to mortgagees.
I think you have the right answer. Let the loan owner determine what is in his best interests. Putting a gun against the taxpayer and forcing others to pay the consequences does nothing but reinforce the bank’s tendencies to make risky loans without assuming any risk, and holds people who have made their payments to unfairly reward banks.
Wow, I was such a sap! I actually PAID for my house! And to add further injury to existing injury, I get to look forward to the value of my lifetime savings evaporating into thin air because the Feds are printing an extra 1.9 trillion dollars every year for the Obammunists to spend on socialist crap like this, as well as having my tax rates raised to pay down a tiny bit of that socialist debt. For me, then, this is another lose, lose, lose situation under Obammunism. Just like all of the rest of the parts of Obammunism.