U.S. Sets Big Incentives to Head Off Foreclosures

Originally posted by pyrytyes



These incentives are not for those who have already lost their home,or if the current value of the home is less than the mortgage amount. Plus proof of income is required. They will? rewrite the paper so that the payments fall within 31% of the gross income.

Great deal for some, but not for all of those in need of assistance, I fear.

Actually, the part which most conservatives are having heartburn with is the hardship clause which helps those Americans who have recently lost their job and do not have proof of income.

Originally posted by sos37
And where's the incentive for those of us who didn't over-extend our credit and have made payments faithfully the last, oh say, 10 years on our homes? No "atta boy" rewards by lowering the fixed interest rates for those homeowners by 1% to 2% for being responsible?

SOS, as with all true things in this world, your atta boy comes from the pride in the work you do. You can take pride in not needing to have to take a handout. Take pride in not owing anyone anything. That used to be an American value which folks like my parents exhorted proudly. We didn't hate on those who took handouts or the system for giving handouts, we were simply happy that we managed what we had in such a way that we didn't have to.

So what's the lesson here? If you've been a good citizen, the joke is on you?

Obviously not... have you seen the bonuses those bankers got for looking the other way which was the patriotic thing to do back then... oh yes... the wonders of de-regulation...

Have you seen all of the thousands of criminals in Florida who became loan originators within 3 months of getting out of Jail? It was the new racket... but the Association of Real Estate down there wouldn't hear any talk of regulation as it would "hurt the market".

How do you define a good citizen? Perhaps a good consumer... but someone who's house has just been foreclosed on cannot be called a Bad Citizen.

You should say "to hell with your mortgage company", let the payments slide and let your mortgage go into default so you too can qualify for this program and get your interest rate lowered???

As mentioned before, most of these programs do not assist those people who have already defaulted on their loans. The majority of this is there to protect those who are suffering the effects of the greater recession.

[edit on 5-3-2009 by HunkaHunka]

[edit on 5-3-2009 by HunkaHunka]

reply to post by HunkaHunka


There has been a lot of heartburn material thrown at us the past few months.

Unfortunate the mindset. As I said elsewhere...this is kinda like the trickle down theory of Reaganomics... except all the money has been thrown at the rich, and they really don't know what to do with it.

Once again the little guy gets the hind teat.

Originally posted by Moonsouljah
reply to post by sos37

 

I hear people's relief and such but the shaft is once again falling on those who have obeyed all the rules. When I was in school learning about Communist Russia and asking myself "why work? why not just sit around waiting for the next gov handout?" That or revolt against the injustices of Communist dictators...hmmm....

Some people thought Roosevelt was a Bolshevik too.

There are many, many people who are out of work--that's what a depression is. There will be many more before it's over. This measure will hopefully help prevent the appearance of tent cities all over the country--they were called Hoovervilles during the Depression, after the president who believed in tightening our belt in response to the crisis.

I don't sit up nights worrying about some nameless person who might actually prefer living on a very minimum government allowance instead of having a middle-class lifestyle with a car and something better to eat than hamburger helper. They are a minority of the population. I don't mind my tax money going to the disabled, the mentally challenged or mentally ill, etc. It's just a small part of the taxes I pay. They are not the ones responsible for this crisis--it's the greed of all those "successful" people on Wall Street.

Anyway, in the former Soviet Union if you didn't work you didn't eat, same as under capitalism.



[edit on 6-3-2009 by Sestias]

reply to post by NateNute



Yes Nate, the problem is with the others that are complaining about this move is that THEY have never found themselves in that situation. It would be interesting to see how they would be talking if, God forbid, they lose a job or a loved one that is providing the other half of their income and find themselves on the brink of losing their home. I just wonder how they would be talking right now.

You see people, sure, there are MANY that will be taking advantage of this handout. People that didn't do it the right way. Sure, we can try to lay blame on them or on the preditory lending practices. It all comes down to the fact that they shouldn't have made the purchase in the first place.

That aside, there are over 11 million people unemployed right now. I am betting that a pretty large percentage of the people that will qualify for this are among those who 'paid faithfully for 10 years on their mortgage and bought a home that was well within their means'.

They are just pissed off because the money will come out of their pockets too. I am with them on that part of this 'plan' but the 'humane' side of me says that it is much better than having 3 million plus families out on the streets.

Now, as for having the rates dropped down to around 2% for the rest of the loan, heck, that is a bit much. Maybe I should try and take advantage of that!

reply to post by HunkaHunka


I'm not having a problem with the stimulus package helping out those have paid their mortgages on time up until they lost their jobs or some medical catastrophe kept them from working and making their payments. I'm not against helping those that hard times truly fell upon.

Who I am against helping are those who purposefully signed mortgages that they knew they could not afford - sub-prime mortgages with ARMs built into the contracts that they didn't bother to read. And it's true, the predatory lenders share half the blame, and most of them are out of business right now.

The examples I've heard make your blood boil - a single parent in DC, a male, raising two daughters, insisting on sending his daughter to private school at $10,000 a year. He makes about $85,000 and bought a house that is $500,000 and now he's appealing to Obama to help him. I say why should anyone help him? He's clearly over-extended his means of living by getting into a house that's WAY over the allowable debt to income ratio and sending his daughter to a pricey school on top of that. Instead of looking for a government handout, how about adjusting the cost of living? That is a prime example of the type of people I don't have any interest in helping with my tax money - the "gimme's".

Originally posted by sos37
reply to post by HunkaHunka

 

I'm not having a problem with the stimulus package helping out those have paid their mortgages on time up until they lost their jobs or some medical catastrophe kept them from working and making their payments.
* * * * *
Instead of looking for a government handout, how about adjusting the cost of living? That is a prime example of the type of people I don't have any interest in helping with my tax money - the "gimme's".

Agreed. I think the decades since the 80's have been decades of just pure greed. Everybody felt that they should have more, more, more. . .and believed they were losers if they didn't have those things. It was very tempting to put oneself in debt for a lifetime just to prove that you had "made it."

It'll be a rude awakening for many, if it isn't already.