$1.5 Billion to 5 states for mortgage relief

[teamnelson]

... at least that's what the headlines are saying. I expect full well it will take forever, and very few will see the relief, but let's just operate on the promise for a moment.

I'm outraged at the very thought of bailing out people who make stupid decisions. Interview after article after blog after email I read about how folks got into interest only loans to buy houses they couldn't afford in the first place, gambling that their job would improve, or that they could flip it and make real cash. Now entire subdivisions in Arizona, built right over some of my favorite dirt biking rabbit hunting areas, are like a ghost town - row after row of empty brand new homes. Sure, a few legitimate folks got caught in the downturn ... but I'm betting most were gambling for the get rich quick house flip. Personal debt has been skyrocketing for decades, and bankruptcies were climbing exponentially.

I guess I'm just an idiot. I've owned two houses in my life, stayed well below conservative on my level of mortgage, made my payments on time, and like all my other debts, proved myself to be a good risk. That's what I was told was the "right" thing to do. I don't own a house at present, and I wish I did ... if Uncle Sam moves me somewhere worth living, I'd gladly buy again. I'd gladly take over a foreclosure, and do my best to stimulate the economy. I've got the money, but my government isn't interested in helping me. I've got an amazing credit score, but that's not worth a thing to anybody. Instead, I'm the responsible citizen who's supposed to pony up and take care of everyone else. So yeah, sour grapes ... you could say I'm just angry I'm not getting any of that 1.5 billion.

Exactly how does rewarding someone for making a stupid gamble help them learn? What does it teach the rest of us that didn't gamble? Why are we protecting people from the consequences of their decisions again?

[scootrd]

I'm very very mixed on this one, I readily agree , some people out of greed did exactly what you said. Unfortunately others fell prey to predatory lenders who qualified people for homes they new darn well they couldn't afford. or took advantage of folks who didn't fully understand the hidden terms.

I don't know the right answer here. and how do we separate the wheat from the chaff?. I continuously flip flop back and forth on this issue personally knowing people who have fallen into both camps. Perhaps the answer needs to be judged on a case by case basis.

Also , if a whole neighborhood falls into foreclosures, our own properties value becomes affected, so either way we who have paid our bills still become affected. Like I said , I truly don't know the answer , I just know I get very angry sometimes that we have even arrived at this point in our economy.

I also don't believe any of the monies that have been set aside already to help folks with their mortgages have ever trickled down and been implemented. The local banks are hoarding the monies , not working with people , and not using the already identified programs and monies as they were intended For.

Perhaps it's time to cash it all in remove myself from this economy for a number of years by moving to Panama or Belieze and become an ex-pat to ride this all out. I have a service buddy who married a Thai woman 30 years ago , he has already done that , Roger sold their house and they have gone to Thailand, he plans to stay there for a number of years until all this mess is cleaned up.  pretty sad state of affairs all way 'round What a mess.

[Victor3]

Why are we protecting people from the consequences of their decisions again?

 That's the main problem; inflating the housing bubble all over again.

 It's not the only issue though. The benefits are not always going to those who need help. I know that for a fact because I just closed a refi under HARP (Home Affordable Refinance Program). The mortgage on my primary residence wasn't 'distressed.' I was approved with very low loan to value and debt to income ratios and excellent credit.

 In other words, I was 'bailed out' (via Freddie/Fannie) of an existing mortgage with an 18 year track record of 100% on time payments to take advantage of a lower interest rate and zero-cost refi.

 I heard a good one from an economist the other day...

 "The current administration's schemes are like a man taking a bucket of water from the deep end of a pool and dumping it into the shallow end in the hope of raising the water level."

 

 

[magooch]

There's another problem lurking that is every bit as destructive as the mortgage issue.  I own my home outright and have for pretty much most of my adult life.  I built it with my own two hands and I guess I built more than what should be allowed, because now the state, county and school district are doing their best to tax me out of it.  The problem is that the people are the problem.  We have had opportunity after opportunity to limit taxation and every time the voters choose to "do it for the chidrens"; the fire departments; the parks; the port authority and on and on.

My property taxes are now more than double what my payments were when I did have a mortgage on the place.  And I don't have kids in school; I don't get any more, or better government services than those who live in a lean-to.

[blind ear]

Who got the bailout money? Nov 2008

http://www.globalresearch.ca/index.php?context=va&aid=10957

[squirrellluck]

Don't get me wrong I am very much against predatory lending but... If the lender knew the borrower couldn't afford it shouldn't  the borrower have known it first. It is the American pastime of blame someone else for  my mistakes. No one but me is responsible for my decisions.I should know if I can afford  a loan for a house, car, etc.

[blind ear]

If you notice that was as of Nov 2008. Much or most of that money didn't pass through the banks to prop up the borrowers of bad personal home loans but was used by the banks to make other investments to strenghthen thier bottom line and also to pay bonuses to the bank officers. eddie

[The Hermit]

On Fox yesterday, 68% of the money to "help America get going" has NOT been spent. We have very little to show for the 32% that was spent. Some stimulus.
Also please note that the WH quit using the words " 3 miilion jobs created or saved" BS.
Anybody or any project that you know of in your area that has "created" jobs?
Do we need another housing bubble?


   The Hermit

[torpedoman]

Lets take a hard look at this. there are folks in mich. who have been in the same house making payments for 15 yrs who are now facing losing their house not due to their stupidity or greed or any bad decision except to work for a car company that is no longer making cars there. All that aside just how are they going to spend or disburse this 1.5 Billion?, who gets it and how?Or will it just disappear with no trace like so much of the bailout has done.  Let's contact our reps and demand some explanation of how it will be done BEFORE it is approved.

[scootrd]

Lets take a hard look at this. there are folks in mich. who have been in the same house making payments for 15 yrs who are now facing losing their house not due to their stupidity or greed or any bad decision except to work for a car company that is no longer making cars there. All that aside just how are they going to spend or disburse this 1.5 Billion?, who gets it and how?Or will it just disappear with no trace like so much of the bailout has done.  Let's contact our reps and demand some explanation of how it will be done BEFORE it is approved.

Eddiegjr is absolutely correct !!!!!

I don't have to contact anyone to answer this one  =  slight of hand , 3 card Monty. good luck finding the pea under the walnut shell. they will just keep moving it around until it's all gone. Trickle down economics does not work when there is so much greed at the top.

BTW,
I have real life knowledge of how all this BS works.. Here's the scam...

My neighbor had to file bankruptcy  in 2009 to try and save his house , now he calls around to National mortgage lenders and local banks (that supposedly have this GOVT monies to help) to try to restructure and refinance under the GOVT mortgage relief package and no one will touch him for 2.5 years. Yeah this relief package sure is working for the little guys. up until he lost his Job he had solid credit all his life. He's back to work now but working for 1/2 of what he made before so he needs to refinance to get his payments down to a reasonable  monthy payment based on his new income level.  

Here's the scam part ....

 Most want 300.00 (or like funds up front ) to fill out paperwork to see if he qualifies and then they tell him no because of the bankruptcy or some other excuse. he's dropped 600.00 so far and 8 months worth of trying. It's a big game.

The lending institutions are making money off processing and admin fees , they then deny approvals. Its all a way to just get additional $$ through charging folks admin processing fees and then have paper trail for Govt auditors so they can show  "proof "they are trying to work with folks. That way these lending institutions can keep asking for more and more Govt mortgage relief monies for folks that they keep and never really lend. They just use it to shore up their own Bank investments (they disperse nothing) and offset their own bank losses when the little guy gets foreclosed on. One big walnut shell game. Gook luck finding the pea.

[magooch]

On Fox yesterday, 68% of the money to "help America get going" has NOT been spent. We have very little to show for the 32% that was spent. Some stimulus.
Also please note that the WH quit using the words " 3 miilion jobs created or saved" BS.
Anybody or any project that you know of in your area that has "created" jobs?
Do we need another housing bubble?


   The Hermit

Speculation is that Obama, Pilosi, Reid and company plan to use the unspent stimulus to stimulate votes in states and areas where their candidates are shakey.  In short, it is the biggest election slush fund ever.

[jimster]

I also agree that 2/3 of the stim money sitting there is a slush fund, for elections.

I also think there will be no help for the mortgages and it's a poy,  just like the first batch of help was a ploy in earlier legislation.
No matter what the name of this legislation is they sign, it won't happen, people should know this by now.  The money never gets to the regular folks, it never will...many government offices will scoop it up on the way through like last time. No regular folks will keep their homes.  Just like last time.

So maybe the argument on if this is good or not doesn't matter, since we really know nobody will get any of this money anyways except the state, it all will go into a black hole to never be seen again.  You don't have to worry about someone getting money for their mortgage that doesn't deserve it, or someone that does deserve it.  Won't happen either way.  That is the beauty of all this legislation from the start.  It was never designed to get to any private parties.