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Obama administration to offer home re-fi plan "independent of how deeply underwater they are"
The Daily Caller ^ | 10/24/2011 | Neil Munro

Posted on 10/24/2011 2:37:57 PM PDT by martosko

President Barack Obama is expanding his use of federal regulations by prodding the financial sector to sell low-interest mortgages to millions of cash-strapped homeowners “independent of how deeply underwater they are,” said Shaun Donovan, Secretary of the Department of Housing and Urban Development, Monday morning.

White House officials worked with real-estate and financial-sector groups to shift the financial risks that have kept high-risk borrowers from getting mortgages. Under Obama’s plan, mortgages will even be offered to homeowners who need to borrow 125 percent of a house’s value, Donovan added.


TOPICS: Business/Economy; Government; Politics/Elections; US: Nevada
KEYWORDS: government; local; mortgages; obama; propertytaxes; socialism; studentloans; stupidity
Solyndra was just the anaesthesia so we wouldn't feel this round of loan guarantees ...
1 posted on 10/24/2011 2:38:06 PM PDT by martosko
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To: FReepers; everyone; All
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2 posted on 10/24/2011 2:40:53 PM PDT by onyx (You're here on FR, so support it! Compiling New Sarah Ping List. Let me know if you want on it.)
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To: martosko

Why doesn’t he just cut to the chase and decree “Free houses for Everybody”?

It’s coming.


3 posted on 10/24/2011 2:45:40 PM PDT by rbg81
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To: onyx

I just read the Fed rules on this. It will affect a very, very small percentage of loans....the good news is it might save some homes for people who are current on mortgage payments and have some equity in the home.

the bad news is this is a govt program and they will screw it up, like the previous “mortgage assistance” programs and will do nothing to help anyone! BTW, the banks will drag their feet on it.


4 posted on 10/24/2011 2:46:08 PM PDT by Recovering Ex-hippie (Rick Perry 2012)
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To: martosko
In addition to what amounts to a large-scale loan guarantee program, federal risk-based fees will be reduced, legal obligations to federal agencies on existing loans are being dropped, and private-sector risks will be automatically shifted to the government on new loans, Donovan said, adding that the president pushed the new policies. On Wednesday the president is slated to announce new student loan policy. He will appear Tuesday in Colorado, another must-win state for his re-election campaign.

This is such a "two-fer" for Obama - (i) a naked attempt to aid his re-election drive and (ii) a way to further destroy the US economy in true Cloward-Piven fashion. Win-win for the anti-American Marxist!!
5 posted on 10/24/2011 2:46:21 PM PDT by rockvillem
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To: martosko

It’s not just Congress that 0bama can’t wait for.

It’s also simple mathematics.


6 posted on 10/24/2011 2:50:42 PM PDT by Attention Surplus Disorder (Madoff screwed the rich. Bernanke screwed us all.)
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To: martosko

Cash for Clunkers! The Housing Edition®


7 posted on 10/24/2011 2:52:52 PM PDT by Noamie
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To: martosko

Another brilliant social justice program from the people who thought that the government should force banks to lend money to people who could not afford to pay for their homes.

sigh


8 posted on 10/24/2011 2:53:44 PM PDT by taxcontrol
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To: Noamie

instead of a bus, they’ll use the giant backside of the 1st lady.


9 posted on 10/24/2011 3:04:14 PM PDT by WOBBLY BOB (See ya later, debt inflator ! Gone in 4 (2012))
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To: WOBBLY BOB

OMG....your statement just made me visualize MEECHelles backside plastered with a VOTE Obama “bumper” sticker!!!


10 posted on 10/24/2011 3:13:09 PM PDT by goodnesswins (My Kid/Grandkids are NOT your ATM, liberals! (Sarah Palin))
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To: Recovering Ex-hippie

One more item; I believe this will only apply to mortgages held by Fannie/Freddie.


11 posted on 10/24/2011 3:16:56 PM PDT by pingman (Durn tootin'; I like Glock shootin'!)
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To: martosko

this how we got in this mess......this guy is an enemy of America and is working 24/7 to destroy all he can...Hank Jr. was right...


12 posted on 10/24/2011 3:19:19 PM PDT by The Wizard (Madam President is my President now, and in the future)
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To: pingman

isn’t that like 90% of them?


13 posted on 10/24/2011 3:25:48 PM PDT by WOBBLY BOB (See ya later, debt inflator ! Gone in 4 (2012))
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To: WOBBLY BOB

More like 50% of the outstanding mortgage debt, but, yeah; probably close to 90% of the underwater market.


14 posted on 10/24/2011 3:32:50 PM PDT by pingman (Durn tootin'; I like Glock shootin'!)
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To: martosko

To whom would they be “shifting the risks”?

The taxpayers, maybe!

One
Big
@$$
Mistake,
America!!!!!


15 posted on 10/24/2011 3:35:48 PM PDT by GatorGirl (Herman Cain 2012)
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To: WOBBLY BOB

Our “checks and balances” system seems to be totally locked up via “cranial rectal inversion”. Wish I had that picture that precisely illustrates the problem.


16 posted on 10/24/2011 3:40:03 PM PDT by mcshot (Neither handsome nor handy but took an oath and will vote to save our Country.)
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To: taxcontrol

I pay my own bills. My mortgage is not behind nor am I underwater. Why? Well geez, I made sure I could afford the mortgage. I read the contract before I signed it. What reward do I get? I get to pay for everyone else who did not do these prudent thing.

There is NOTHING LEFT FROM MY CHECK to give anymore.
I count pennies for tolls. Haven’t bought clothes in years. Can’t take this crap anymore.

The latest congressional bill presented is now trying to provide FREE diapers. WTH!!!


17 posted on 10/24/2011 3:44:29 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: taxcontrol

I pay my own bills. My mortgage is not behind nor am I underwater. Why? Well geez, I made sure I could afford the mortgage. I read the contract before I signed it. What reward do I get? I get to pay for everyone else who did not do these prudent thing.

There is NOTHING LEFT FROM MY CHECK to give anymore.
I count pennies for tolls. Haven’t bought clothes in years. Can’t take this crap anymore.

The latest congressional bill presented is now trying to provide FREE diapers. WTH!!!


18 posted on 10/24/2011 3:44:46 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: martosko

In California if you default on an original purchase loan, the worst that can happen is the bank can take your house. They can’t come after you for the rest of the loan. However if you refinance, you are personally liable for the whole amount. This is no favor to at risk homeowners.


19 posted on 10/24/2011 3:51:02 PM PDT by Hugin ("A man'll usually tell you his bad intentions if you listen and let yourself hear it"--- Open Range)
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To: martosko

In California if you default on an original purchase loan, the worst that can happen is the bank can take your house. They can’t come after you for the rest of the loan. However if you refinance, you are personally liable for the whole amount. This is no favor to at risk homeowners.


20 posted on 10/24/2011 3:51:14 PM PDT by Hugin ("A man'll usually tell you his bad intentions if you listen and let yourself hear it"--- Open Range)
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


21 posted on 10/24/2011 3:51:21 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: All

where do I get in line to get me some of that free Obama stuff? I need to enroll in an ivy league school and get the loans paid for too because he’s really close to forgiving all student loans too.

What a friggin racket.


22 posted on 10/24/2011 3:56:52 PM PDT by newnhdad
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To: martosko

I know some people who were scraping pennies together to keep their mortgage payments up to date. They are upside down by about 30% on the financed amount but want to keep their home.

Their income has fallen far below the amount needed to make the monthly payments but they have been trying.

They applied for a refinance under a previous government program but were told the program only applied to those who were at least three months behind on their mortgage.

Against their better judgement and under duress they skipped the next three payments and reapplied.
Their application was refused.

Then they applied for a refinance under a diferent program.
They were refused because they were behind on their payments and could not show enough income to pay the arrears and the penalties as well as the current payments.


23 posted on 10/24/2011 4:00:37 PM PDT by Iron Munro ('We do have tough gun laws in Massachusetts; I support them.' -- Mitt Romney)
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To: martosko

Pressure from the hordes of local government employees to keep prices unnaturally up and stop the property tax declines. Those socialists play both parties.


24 posted on 10/24/2011 4:46:37 PM PDT by familyop ("Dry land is not just our destination, it is our destiny!" --Deacon character, "Waterworld")
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To: martosko
prodding the financial sector to sell low-interest mortgages to millions of cash-strapped homeowners “independent of how deeply underwater they are,”

Unfortunately for me, a putz who has been paying my mortgage religiously despite being cash strapped, won't qualify for those low interest loans........

25 posted on 10/24/2011 5:03:27 PM PDT by Hot Tabasco (I guess some people are born with a need to be pissed off about something........)
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To: martosko
prodding the financial sector to sell low-interest mortgages to millions of cash-strapped homeowners “independent of how deeply underwater they are,”

Unfortunately for me, a putz who has been paying my mortgage religiously despite being cash strapped, won't qualify for those low interest loans........

26 posted on 10/24/2011 5:07:27 PM PDT by Hot Tabasco (I guess some people are born with a need to be pissed off about something........)
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To: Donnafrflorida

Yeah but you take out a loan for 30 years...a lot can happen in those 30 years. Your spouse could die. You could die. You or your spouse could lose their job. There could be an economic depression. Even if you have a lot of money in savings, that will dry up real quick if you are having income issues. Most people can pay the mortgage when they took the loan out. But how many would be able to pay if they lost their job and can’t find another one?

What do you want such people to do? They can’t move because the house is underwater. They can’t find another job with a high enough income to make the payment. The bank won’t modify the loan. So their only option is to move out and throw the keys in the face of the banker. Sure the bank can try to go after the guy for the money...but you can’t twist water out of a dry towel. If the guy has no money, the bank will ultimately end up taking a loss of possibly hundreds of thousands of dollars. If enough people do this, then the banking industry and real estate market will eventually collapse. Your equity in YOUR house will be destroyed.

The only long-term solution is for the economy to come back. For jobs with decent salaries to come back. Then people can start paying their mortgages again. Unless that happens, we are all in trouble.


27 posted on 10/24/2011 6:10:44 PM PDT by floridarunner01
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To: floridarunner01
If enough people do this, then the banking industry and real estate market will eventually collapse. Your equity in YOUR house will be destroyed.

We structured our home loan so that we had $10,000 in equity. That was then.

Now there have been so many foreclosures and must-sell estate liquidations in our neighborhood that property values have dropped close to 40% and we are under water.

Have always paid my mortgage on time, even though I have been unemployed twice in the last 5 years. Sometimes I feel like a fool for doing so, but we signed on for the debt and so we meet our obligation.

28 posted on 10/24/2011 6:25:16 PM PDT by Mygirlsmom ("Get ready for an aberration of historic proportions" ...H Cain.."to correct the last one" MGM)
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To: floridarunner01

My husband walked out on me for drugs and left me with 3 kids and 38 thousand in CR card debt.

He took the only working vehicle. He paid no child support and I eventually had. A 50 thousand dollar IRS lien just put on me for using my 401k to survive.

Yeah poop happens.

In my lifetime I have worked two jobs and still managed to get my 4 year degree ( took twenty some years.
Sorry, I am NOT responsible for others who got a bad break.

You babysit. You rent out rooms. You try to get another job. You do whatever it takes. If you still fail, at least you tried but the owness is NOT on me to save you.

I am also trying yo help others where I can.

I want the government to get the hell out if my pocketbook!!!!


29 posted on 10/24/2011 6:33:14 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: floridarunner01

My husband walked out on me for drugs and left me with 3 kids and 38 thousand in CR card debt.

He took the only working vehicle. He paid no child support and I eventually had. A 50 thousand dollar IRS lien just put on me for using my 401k to survive.

Yeah poop happens.

In my lifetime I have worked two jobs and still managed to get my 4 year degree ( took twenty some years.
Sorry, I am NOT responsible for others who got a bad break.

You babysit. You rent out rooms. You try to get another job. You do whatever it takes. If you still fail, at least you tried but the owness is NOT on me to save you.

I am also trying yo help others where I can.

I want the government to get the hell out if my pocketbook!!!!


30 posted on 10/24/2011 6:33:30 PM PDT by Donnafrflorida (Thru HIM all things are possible.)
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To: taxcontrol
Another brilliant social justice program from the people who thought that the government should force banks to lend money to people who could not afford to pay for their homes.

With similar results...

31 posted on 10/24/2011 7:04:34 PM PDT by GOPJ (OWS - a scam to shift blame for unemployment and misery away from Obama..)
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To: martosko

Hiissein is truly an evil monster and I have no doubt that whatever his driving motivation may be, his goal is to undermine this country until it implodes. He is a monster and the enemy of America.


32 posted on 10/25/2011 1:38:37 AM PDT by mrsmel
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