New Mortgage Bailout Program: Stuck on Stupid.

[PixieStix]

Link? That's a pretty heavy accusation, Pix, so you need to back it up. Otherwise you are needlessly scaring people.

I have no time this morning. I wish I had kept that "offer", I shredded it. I will do a search when I get home from work. I am not sure they have made tha e actual contract/offer available online without actually signing. We will see

You must have misunderstood something. The government isn't in the business of foreclosing on private property.

That's getting into conspiracy theory territory.

Ravi, you should pay more attention to government related "help. AKA bureaucratic nightmares. I know what I read, and what I was told over the phone. I asked all the pertinent questions, out of the need to know because it is MY property, and I intend on keeping it

 

[iamwhatiseem]

All they are doing in this case is lifting the regulation to allow more people to refinance their homes.

Think about that sentence....why is the regulation there?
Right - it is a safety valve that protects the system...you know..like all of the other safety valves that the government shut off that created the mess in the first place.

I want to know more about this first. Are there income limits? Can a couple earning $500k a year get this bail out? Will there be a push to lengthen the mortgage to get the payment down? What happens 20 years from now when they want to sell and they have lots of equity because they were bailed out - will we see a bunch of people selling their homes to cash in?
Is there a limit on the mortgage value? Are mortgages over $1 mil going to be bailed out as well?
Lots of questions...but I am sure the administration will want to ram rod it through.

 

[editec]

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?

I agree that this is a feeble response.

It will have some modest effect though.

For those whose mortgages are in the 6% or greater range, but those who could NOT get refi'ed?

They will find it easier, one hopes, to refi.

A couple hundred bucks saved on interest every month may not seem like much to some of us, but to families struggling to keep their heads above water, this modest savings will be very helpful.

 

[iamwhatiseem]

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?

I agree that this is a feeble response.

It will have some modest effect though.

For those whose mortgages are in the 6% or greater range, but those who could NOT get refi'ed?

They will find it easier, one hopes, to refi.

A couple hundred bucks saved on interest every month may not seem like much to some of us, but to families struggling to keep their heads above water, this modest savings will be very helpful.

In the end, once again, what it all boils down to is Freddie and Fannie will continue to get bailed out for years to come with taxpayer dollars. The lost interest income doesn't magically go away...instead of the irresponsible homeowners paying it - we all will.
And I am sick and tired of paying $10,000's in income tax every year that is mostly given away/wasted or worse - contributing to future crises.
Very tired of seeing this money go to places I do not agree with at all.

 

[editec]

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:

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?

I agree that this is a feeble response.

It will have some modest effect though.

For those whose mortgages are in the 6% or greater range, but those who could NOT get refi'ed?

They will find it easier, one hopes, to refi.

A couple hundred bucks saved on interest every month may not seem like much to some of us, but to families struggling to keep their heads above water, this modest savings will be very helpful.

In the end, once again, what it all boils down to is Freddie and Fannie will continue to get bailed out for years to come with taxpayer dollars. The lost interest income doesn't magically go away...instead of the irresponsible homeowners paying it - we all will.
And I am sick and tired of paying $10,000's in income tax every year that is mostly given away/wasted or worse - contributing to future crises.
Very tired of seeing this money go to places I do not agree with at all.

I am completely sympathetic to that complaint.

SAdly the value of your house is tied to the value of ever4ybody elses homes.

This feeble response is part of the effort to stabilize the housing market.

I don't think its going to help much, either.

Like you I am not under water, and like you, I am current on my mortgage.

But still, my neighbors who aren't ARE depressing the market value of my home and therfore, making it harder for you and I to sell our homes in a timely fashion.

 

[The Rabbi]

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

Then this program wouldn't have helped because foreclosure means they didnt pay their mortgage. THis program is for people who are current.

 

[Ravi]

I have no time this morning. I wish I had kept that "offer", I shredded it. I will do a search when I get home from work. I am not sure they have made tha e actual contract/offer available online without actually signing. We will see

You must have misunderstood something. The government isn't in the business of foreclosing on private property.

That's getting into conspiracy theory territory.

Ravi, you should pay more attention to government related "help. AKA bureaucratic nightmares. I know what I read, and what I was told over the phone. I asked all the pertinent questions, out of the need to know because it is MY property, and I intend on keeping it

 

[The Rabbi]

Obviously, only wealthy stockbrokers and bankers deserve government bailouts, not actual homeowners.

I agree in principle that all the folks who bought more house than they needed were part of the problem, but it wasn't like anyone was really trying to discourage them. Not the banks, not the realtors, not the "Flip this House" hucksters who told us that Real Estate was the way to go on investment.

As a practical matter, any comparble home that is foreclosed on brings down the value of my property, so anything that forestalls them is probably in all of our interests. Not sure this is the way to go, but better than the Romney "let them eat cake.... er let the foreclosures run their course" policy.

People who bought more house than they need is the PRIMARY problem.
Of the homes in foreclosure - it isn't the 2 bdrm little cottages - it is the 4 Brdm, 3 car garage with finished basements that are the biggest problem.

I agree- They are the problem. but that involved a banker who looked at their finances and should have realized they wouldn't be able to make their home payments if there was even the smallest of recessions. The Bankers didn't care. Because as long as house prices were shooting up, they could collect a couple years of mortgage payments, then sell the house for more than the principle.

It fell apart when the bubble burst.

Now, I think that the completely irresponsible shouldn't be helped, but people who are at least making the effort to keep up should be. Will the program do that? Probably not. government programs are notorious for encouraging the wrong kind of behavior.

Gee, you dont think the borrowers also had responsibility--maybe even more--to look at it and say, Honey, if they cut back your overtime we won't be able to afford this?
At the time it all seemed reasonable. Because with rising prices if he couldn't afford it he could sell and get out from under it and the bank would be paid off. Real estate always goes up,was the adage. And over the long haul that's true.

 

[The Rabbi]

Rabbi's economic policy- "Are there no prisons, are there no workhouses? "

Actually my economic policy is "Are there no rental houses with lower monthly expenses?" Because that is where foreclosed people go, not on the street.
Yours is "Screwed up? We'll bail you out! with someone else's money!"
Leftist 'tard.

 

[The Rabbi]

I get what you are saying Grampa....but I disagree.
We all knew this was happening. You can't tell me that a person whose household income was $85,000 that they didn't know they shouldn't be buying a $550,000 McMansion with no money down.
The entire system was absolutely geared for catastrophic failure and everyone involved knew it - including the buyers.
Pain must be shared. And I'll be damned if I want $billions more to bailout Mr. and Mrs. "I want it all now!" driving around in their little BMW's and sipping Starbucks coffee and whining because they overbought.
Sorry.

I hear ya but I don't drive a BMW or sip foo foo drinks. I've been in my house for quite some time and I wasn't part of this scam but many like me are feeling the crunch through no fault of their own.

What "crunch" are you feeling, exactly? You are making the same payment you made 5 years ago, assuming you have a mortgage at all. Your property taxes should have gone down in a re-assessment of the house's value. If you aren't putting your house on the market, so what if the value is lower? Your car loses value every day and I dont see the gov't rushing to bail out people from depreciating cars.

 

[mudwhistle]

I thought Dodd-Frank was supposed to deal with this??

Instead it exacerbated it.

These people may be making their payments on time but they want to take advantage of lower rates......but the sticking point is their loan to value ratio is too high. They have no equity...in some cases negative equity, which means they don't qualify.

So Obama comes along and promises the world to them and it sounds good until you look at the small print.

Not only are you paying closing costs but you're simply pushing back your payments another 10 to 20 years. It's like all of the payments you made before are erased and went down a rat-hole because you have no equity. The only advantage is their payment is lowered, but that only helps if you want to free up some of your cash for other things.

Problem is energy costs and food costs are going up, thanks to Obama's new regulations, and any savings will be eaten up by inflation.

This is a bad deal for the banks that make these stupid loans.

Isn't is what got us the banking crisis in the first place?

Yet Obama wants to repeat it, possibly setting up another banking collapse.

We the taxpayer are once again on the hook for another harebrained Obama bailout.

Real smart, if you're not paying attention, which is your average Obama supporter in a nut-shell.

 

[iamwhatiseem]

I thought Dodd-Frank was supposed to deal with this??

Instead it exacerbated it.

These people may be making their payments on time but they want to take advantage of lower rates......but the sticking point is their loan to value ratio is too high. They have no equity...in some cases negative equity, which means they don't qualify.

So Obama comes along and promises the world to them and it sounds good until you look at the small print.

Not only are you paying closing costs but you're simply pushing back your payments another 10 to 20 years. It's like all of the payments you made before are erased and went down a rat-hole because you have no equity. The only advantage is their payment is lowered, but that only helps if you want to free up some of your cash for other things.

Problem is energy costs and food costs are going up, thanks to Obama's new regulations, and any savings will be eaten up by inflation.

This is a bad deal for the banks that make these stupid loans.

Isn't is what got us the banking crisis in the first place?

Yet Obama wants to repeat it, possibly setting up another banking collapse.

We the taxpayer are once again on the hook for another harebrained Obama bailout.

Real smart, if you're not paying attention, which is your average Obama supporter in a nut-shell.

Just to note - it won't hurt banks because to qualify the loan has to be backed by Fannie&Freddie. Who it "hurts" is the 45% of us who pay income taxes and knowing that, again, our income is being handed out to pay for other peoples bad choices and/or corruption.

 

[mudwhistle]

I will admit, that because I became unemployed for a year, I missed one mortgage payment. I recieved a big thick application in the mail concening "help" with my situation. I promtly read and shredded the contract after reading that in essense, the government will eventually choke the life out of you if you sign that application.

Nothing is free people. Please pay attention to what is really happening. The government will own you if you take them up on the offert for so called "help". What they are doing is helping themselves to your property and your life.

I was not so bad off that I could not catch up on my mortgage.

What is it that they say, if the government says "they are here to help?"

I've been screwed over by the government so many times.

I trust private business a heck of a lot more then an abusive government.

Any business owner discovers this real quick.

 

[mudwhistle]

I thought Dodd-Frank was supposed to deal with this??

Instead it exacerbated it.

These people may be making their payments on time but they want to take advantage of lower rates......but the sticking point is their loan to value ratio is too high. They have no equity...in some cases negative equity, which means they don't qualify.

So Obama comes along and promises the world to them and it sounds good until you look at the small print.

Not only are you paying closing costs but you're simply pushing back your payments another 10 to 20 years. It's like all of the payments you made before are erased and went down a rat-hole because you have no equity. The only advantage is their payment is lowered, but that only helps if you want to free up some of your cash for other things.

Problem is energy costs and food costs are going up, thanks to Obama's new regulations, and any savings will be eaten up by inflation.

This is a bad deal for the banks that make these stupid loans.

Isn't is what got us the banking crisis in the first place?

Yet Obama wants to repeat it, possibly setting up another banking collapse.

We the taxpayer are once again on the hook for another harebrained Obama bailout.

Real smart, if you're not paying attention, which is your average Obama supporter in a nut-shell.

Just to note - it won't hurt banks because to qualify the loan has to be backed by Fannie&Freddie. Who it "hurts" is the 45% of us who pay income taxes and knowing that, again, our income is being handed out to pay for other peoples bad choices and/or corruption.

I'm sorry. I thought I made that clear. Conventional loans are usually not in this shape in the first place.

These are loans backed by Fannie Mae and Freddie Mac. Most loans are backed by FHA or the VA. That is why I mentioned that the taxpayer would foot the bill.

Still, nothing that Obama does is trustworthy. I think there is a possibility Obama may put something in the loan that stiffs the banks as well, for example only guaranteeing a set percentage of the loan balance subject to change at a later date.

Highly risky.

 

[Full-Auto]

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?

I dont mind our government trying to help people, they created this mess. But they are only slowing the recovery as this move just keeps prices down.

 

[iamwhatiseem]

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?

I dont mind our government trying to help people, they created this mess. But they are only slowing the recovery as this move just keeps prices down.

Depends if the "help" is needed or not. If people are paying their mortgage, have long-term seemingly stable employment - that is not help...it is a windfall.

 

[RDD_1210]

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?

Pour what money? Do you even understand what this bill does? The government isn't putting in any money.

 

[Douger]

I will admit, that because I became unemployed for a year, I missed one mortgage payment. I recieved a big thick application in the mail concening "help" with my situation. I promtly read and shredded the contract after reading that in essense, the government will eventually choke the life out of you if you sign that application.

Nothing is free people. Please pay attention to what is really happening. The government will own you if you take them up on the offert for so called "help". What they are doing is helping themselves to your property and your life.

I was not so bad off that I could not catch up on my mortgage.

What is it that they say, if the government says "they are here to help?"

All they are doing in this case is lifting the regulation to allow more people to refinance their homes.

Yes, this is true. But if you mess up or have any unfortunate tragedy in your life that messes with your finances you have to deal with the government who can and will forclose on your property. It is in the contract Ravi. I read it.. The refinancing is just a ploy

Everythingh that the government regulates, becomes a huge bureaucratic nighmare, whether intentional or not, it is a fact

Absorb this murkin advice from a nutjob that thinks chix in wet bikinis is "pornography"

 

[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?

Pour what money? Do you even understand what this bill does? The government isn't putting in any money.

So this program will be cost free? What gov't programs can you name that are cost-free? Why do you think (and I use the term loosely) that this won't cost anyone anything?

 

[CrusaderFrank]

You're all missing the point.

The loans are only for F/F paper. The reason Obama is proposing a new government program is probably because the existing paper has either prepayment penalty or some yield maintenance that prohibits it from being refied

The investors who bought the higher yield paper need to get paid off -- thats my guess. I havent seen the specifics.