New Mortgage Bailout Program: Stuck on Stupid.

[The Rabbi]

Here we go again. Why is Obama rolling out yet another soon-to-fail program to protect people from their own stupidity? I know the answer: the election is next year. But seriously. Will this guy ever get around to governing, like for real?
Obama to Announce New Program to Help Struggling Homeowners | ABC News - Yahoo! News
Note the requirements:

While administration officials say it will help thousands of homeowners, the program has its caveats. Only those homeowners whose mortgages are backed by Fannie Mae and Freddie Mac will be eligible for refinancing. They must have good credit and must have kept up with their mortgage payments, with no late payment in the past six months and no more than one late payment in the past 12 months. Additionally, the mortgage must have been sold to the agencies before May 31, 2009, and not been refinanced previously under the Home Affordable Refinance Program. The loan-to-value ratio has to be greater than 80 percent.

Now, if their mortgages are current with one late payment in the last 12 months, why in the hell do they need help to begin with? And since 80% of people enrolled in these programs end up foreclosed on anyway, why are we continuing to pour money into this?

 

[iamwhatiseem]

It is more of the same really.
All the government knows how to do is fix current problems by piling them up for the future.
In the long run - this is a TERRIBLE plan. People who do this will hate themselves later.
Example...45 year old couple has a mortgage that is $1700 per month. Mortgage is $200,0000...home value is $165,000. They have 15 years to pay on loan.
With the plan the interest rate will lower their payment to $1495...but does that really help much? Sooo...they refinance for 25 years and the payment comes down to a manageable $1200 per month.
Now they won't have their home paid off till they are 70 years old. Thereby damning any hopes of a retirement.

 

[Jackson]

I'm willing to bet that Obama comes out with more "buying votes" before next November rolls along. Keep that Executive Order pen handy.

 

[waltky]

Granny says Obama better get crackin' - peoples still losin' their homes left an' right...

Obama’s efforts to aid homeowners, boost housing market fall far short of goals
October 23,`11 - It was a critical plan to jump-start the economy. President Obama pledged at the beginning of his term to boost the nation’s crippled housing market and help as many as 9 million homeowners avoid losing their homes to foreclosure.

Nearly three years later, it hasn’t worked out. Obama has spent just $2.4 billion of the $50 billion he promised. The initiatives he announced have helped 1.7 million people. Housing prices remain near a crisis low. Millions of people are deeply indebted, owing more than their properties are worth, and many have lost their homes to foreclosure or are likely to do so. Economists increasingly say that, as a result, Americans are too scared to spend money, depriving the economy of its traditional engine of growth.

The Obama effort fell short in part because the president and his senior advisers, after a series of internal debates, decided against more dramatic actions to help homeowners, worried that they would pose risks for taxpayers and the economy, according to numerous current and former officials. They consistently unveiled programs that underperformed, did little to reduce mortgage debts owed by ordinary Americans and rejected a get-tough approach with banks. Doing more to address the housing crisis may be crucial not only for an economy flirting with another recession but also for a president running for reelection.

After watching their homes’ values collapse in recent years, a quarter of all homeowners are “underwater,” owing more than their homes are worth. The president’s housing policy has caused a rift with political allies, such as black and Hispanic groups, whose members have been disproportionately hurt by the crisis. On Monday, Obama is set to travel to the foreclosure capital of the nation, Nevada, where most borrowers are underwater. While there, he will meet with homeowners and push for passage of his jobs legislation, which includes money to rehabilitate hard-hit communities, and mention a program to be unveiled as soon as Monday that will reduce monthly payments for some underwater borrowers.

But Peter Orszag, a former senior White House economic adviser, said the administration has underestimated how much the nation’s massive mortgage debts would weigh the economy down after the financial crisis. “A major policy error has been to put too little weight on the long, hard slog following a financial slump,” he said. “That leads you to being much less bold with housing.” Not that there were easy answers. The administration faced the worst housing crisis since the Great Depression. Spending large amounts of taxpayer money to bail out some homeowners — but not necessarily their neighbors — carried huge political risks and faced opposition in Congress.

In this context, some senior officials say they could not have been much more aggressive. “We tried to operate at the frontier of what was possible and have continuously expanded and refined our programs in an attempt to reach as many homeowners as possible,” said Treasury Secretary Timothy F. Geithner. “We do not believe that there were feasible alternatives available to us within our authority that were better.”

MORE

 

[Listening]

Unbelievable.

I wonder if President Obama's arm get sore from throwing money at things all the time ?

 

[Remodeling Maidiac]

You guys are losing me on this.

When he only helped the ones losing their houses you demanded he help everyone struggling from the burst and not just the lazy liars.

I agreed, but now your changing your tune.

Riddle me this Batman?

 

[Listening]

You guys are losing me on this.

When he only helped the ones losing their houses you demanded he help everyone struggling from the burst and not just the lazy liars.

I agreed, but now your changing your tune.

Riddle me this Batman?

Please answer the question above first.

Why is it that we even need this if the qualifications are essetially that you are not behind in your payments ?

 

[Remodeling Maidiac]

You guys are losing me on this.

When he only helped the ones losing their houses you demanded he help everyone struggling from the burst and not just the lazy liars.

I agreed, but now your changing your tune.

Riddle me this Batman?

Please answer the question above first.

Why is it that we even need this if the qualifications are essetially that you are not behind in your payments ?

The people are upside down to a severe level. That inequality was caused by the govt to begin with. It's not my damn fault 3 houses in my neighborhood went under thereby killing the value of my home. The govt caused this disaster catering to the poor who couldn't afford houses to begin with so its only justice that they help those damaged by such a reckless policy.

 

[McDowell's]

You guys are losing me on this.

When he only helped the ones losing their houses you demanded he help everyone struggling from the burst and not just the lazy liars.

I agreed, but now your changing your tune.

Riddle me this Batman?

Ummm, I didn't. Riddle solved Joker.

Just because the market doesn't move your way doesn't mean you should get a bail out from the government. If you chose to buy a house, you chose to accept the risks involved.

 

[Listening]

You guys are losing me on this.

When he only helped the ones losing their houses you demanded he help everyone struggling from the burst and not just the lazy liars.

I agreed, but now your changing your tune.

Riddle me this Batman?

Please answer the question above first.

Why is it that we even need this if the qualifications are essetially that you are not behind in your payments ?

The people are upside down to a severe level. That inequality was caused by the govt to begin with. It's not my damn fault 3 houses in my neighborhood went under thereby killing the value of my home. The govt caused this disaster catering to the poor who couldn't afford houses to begin with so its only justice that they help those damaged by such a reckless policy.

How do three houses in your neighborhood going under kill the value of your house ?

Your house is worth what someone is willing to pay.

I agree with your other points...I guess I am just not seeing how throwing more money at toxic assests makes any sense at all.

 

[Remodeling Maidiac]

Please answer the question above first.

Why is it that we even need this if the qualifications are essetially that you are not behind in your payments ?

The people are upside down to a severe level. That inequality was caused by the govt to begin with. It's not my damn fault 3 houses in my neighborhood went under thereby killing the value of my home. The govt caused this disaster catering to the poor who couldn't afford houses to begin with so its only justice that they help those damaged by such a reckless policy.

How do three houses in your neighborhood going under kill the value of your house ?

Your house is worth what someone is willing to pay.

I agree with your other points...I guess I am just not seeing how throwing more money at toxic assests makes any sense at all.

They cause my home to lose value because the longer they sit unsold the lower their price goes. And that in turn depresses the values of the surrounding homes when they are appraised. It's a snowball effect and it has hurt a lot of good people. Now those people CAN'T refinance or sell because of the inequity.

 

[Listening]

The people are upside down to a severe level. That inequality was caused by the govt to begin with. It's not my damn fault 3 houses in my neighborhood went under thereby killing the value of my home. The govt caused this disaster catering to the poor who couldn't afford houses to begin with so its only justice that they help those damaged by such a reckless policy.

How do three houses in your neighborhood going under kill the value of your house ?

Your house is worth what someone is willing to pay.

I agree with your other points...I guess I am just not seeing how throwing more money at toxic assests makes any sense at all.

They cause my home to lose value because the longer they sit unsold the lower their price goes. And that in turn depresses the values of the surrounding homes when they are appraised. It's a snowball effect and it has hurt a lot of good people. Now those people CAN'T refinance or sell because of the inequity.

What did you mean they went under (the three houses) ?

 

[Remodeling Maidiac]

How do three houses in your neighborhood going under kill the value of your house ?

Your house is worth what someone is willing to pay.

I agree with your other points...I guess I am just not seeing how throwing more money at toxic assests makes any sense at all.

They cause my home to lose value because the longer they sit unsold the lower their price goes. And that in turn depresses the values of the surrounding homes when they are appraised. It's a snowball effect and it has hurt a lot of good people. Now those people CAN'T refinance or sell because of the inequity.

What did you mean they went under (the three houses) ?

Foreclosed

 

[Listening]

They cause my home to lose value because the longer they sit unsold the lower their price goes. And that in turn depresses the values of the surrounding homes when they are appraised. It's a snowball effect and it has hurt a lot of good people. Now those people CAN'T refinance or sell because of the inequity.

What did you mean they went under (the three houses) ?

Foreclosed

So the banks should be willing to sell them. Correct ?

 

[Remodeling Maidiac]

What did you mean they went under (the three houses) ?

Foreclosed

So the banks should be willing to sell them. Correct ?

There are plenty of buyers. There is no credit available. This is a buyers market. Prices are low but financing restrictions are too tight because the govt fucked everything up so bad everyone pinched it off.

Look I'm not going to run in circles with you. I think I've made my case for this program. It's okay to disagree on the merits of it without getting into a pissing match.

Peace

 

[blu]

What did you mean they went under (the three houses) ?

Foreclosed

So the banks should be willing to sell them. Correct ?

are you really this stupid? you just sound like a rush limbaugh parrot when you said "whatever someone is willing to pay for it"

the first thing you do when buying a house is see what other houses near it have sold for recently, it spawns the saying "never be the best house on the block" because then you will never get the full value.

foreclosed houses only make the process worse

 

[Listening]

Foreclosed

So the banks should be willing to sell them. Correct ?

There are plenty of buyers. There is no credit available. This is a buyers market. Prices are low but financing restrictions are too tight because the govt fucked everything up so bad everyone pinched it off.

Look I'm not going to run in circles with you. I think I've made my case for this program. It's okay to disagree on the merits of it without getting into a pissing match.

Peace

Unfortunately, that is the way the market works. When prices get low enough, cash buyers will start to show up figuring they will get good deals. They are seeing that in the Phoenix area.

I was just asking because I didn't quite understand what you were saying. You said "They can't sell....." I didn't know if this was some kind of new problem.

 

[Listening]

Foreclosed

So the banks should be willing to sell them. Correct ?

are you really this stupid? you just sound like a rush limbaugh parrot when you said "whatever someone is willing to pay for it"

the first thing you do when buying a house is see what other houses near it have sold for recently, it spawns the saying "never be the best house on the block" because then you will never get the full value.

foreclosed houses only make the process worse

I really don't care what I sound like.

The true value of a home is what it can be sold for. You dispute that ?

And when a neighborhood is in a slump, the biggest issue is going to be who blinks first.

Full value means nothing. If prices are going down it is because demand is down or financing is unavailable at those prices. Either way, the value of the house is down. I am sorry to break it to you...but that is the way it works.

Forclosed houses create competition against non-forclosed houses. Banks will let them go to try and recover some cash or get some cash moving. A forclosed house on a banks books is a blight.

 

[CT9]

Foreclosed

So the banks should be willing to sell them. Correct ?

There are plenty of buyers. There is no credit available. This is a buyers market. Prices are low but financing restrictions are too tight because the govt fucked everything up so bad everyone pinched it off.

Look I'm not going to run in circles with you. I think I've made my case for this program. It's okay to disagree on the merits of it without getting into a pissing match.

Peace

I dont think Dragon Ball Z understands the housing market...

lol why did foreclosed homes affect your property value

 

[Listening]

I dont think Dragon Ball Z understands the housing market...

lol why did foreclosed homes affect your property value

Once we got clear on homes that "went under" (forclosed or simply upside down), I think the claim became more logical. But propping up homes isn't going to keep values from going to their equilibrium point. I've seen it firsthand.

But thanks for trying.