"The Obama administration plans to overhaul how it is tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.
Just when you think Obama/Soetoro's arrogance couldn't get any worse, now he's ORDERING banks and lenders to:
"The administration's newest push also seek to more aggressively help borrowers who owe more on their mortgages than their properties are worth, by encouraging lenders to cut the loan balances of millions of these distressed homeowners and possibly refinance into loans backed by the Federal Housing Administration. The problem of so-called "underwater" borrowers has bedeviled earlier administration efforts to address the mortgage crisis as home prices plunged.
"....to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.
"Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower's income, which would typically be their unemployment insurance, for up to six months. In some cases, administration officials said, a lender could allow a borrower to make no payments at all. "
"The administration's newest push also seek to more aggressively help borrowers who owe more on their mortgages than their properties are worth, by encouraging lenders to cut the loan balances of millions of these distressed homeowners and possibly refinance into loans backed by the Federal Housing Administration. The problem of so-called "underwater" borrowers has bedeviled earlier administration efforts to address the mortgage crisis as home prices plunged."
Rest at link.
I think a few million people should get those Burger King hats -- the one that looks like a crown for the BK cartoon ad and send them to the Red House at 1600 Pennsylvania Ave. Barry has no legal authority to do this and why would banks allow borrowers to make no payments?
Require (order) banks to eliminate mortgage payments every month for those unemployed? What? What drugs is this "constitutional law" expert taking? With 26.2 MILLION Americans unemployed, how many have house payments? Eliminate their monthly payments to their bank? 140 banks were seized by the FDIC in 2009. I guess Obama/Soetoro wants to make it one thousand and forty in 2010.
Here is the master list of all banks closed already this year. Take a deep breath 'cause we're only three months into the year:
Oh, now I get it: Banks should go out of business so the FDIC can pony up billions and then the American taxpayer can bail out the FDIC:
FDIC Hits Record "Default" Level As Deposit Insurance Fund Plunges By $12.7 Billion To NEGATIVE 20.9 Billion
Oh, and did I mention the empty head who runs the FDIC wants public pension funds ($1 TRILLION in shortfalls) to do what?
FDIC prodding pension funds to invest in failed banks
"U.S. regulators are encouraging public pension funds that control more than $2 trillion to inject capital directly into the banking system by buying failed lenders, Bloomberg said, citing people briefed on the matter."
Hey, that sounds like a good investment for public pension funds: Buy failed lenders!
Oh, by the way, did I tell you?
Majority of Homeowners With Loan Modifications -- Defaulted Again
March 25 (Bloomberg) -- "More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report.
"The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months.
"U.S. homeowners are struggling to make payments as depressed housing prices leave them owing more than their properties are worth. About 24 percent of properties with a mortgage were underwater in the fourth quarter, First American CoreLogic said last month. The median price of a U.S. home was $165,100 in February, down 28 percent from its peak in July 2006, according to the National Association of Realtors.
"Modifications are "clearly not working well and it,s not a surprise, said Sam Khater, a senior economist at First American CoreLogic in Tysons Corner, Virginia. "It,s pointless to rewrite these loans because they're underwater.
Rest at link
The sub prime lunacy, uh, those with not so good credit who shouldn't be given high ticket mortgages, began in 1993. That would be the Marxist duo administration, Bill and Hill. Sub prime being borrowers with excessive debt, a history of missed payments, failures to pay debts, and recorded bankruptcies. The banks didn't learn the first time, so they restructure the loans and still half default....again. So far. Brings to mind the phrase: throwing good money after bad.
In 1996, I attended the GOP National Convention in San Diego. Standing outside a hotel waiting for friends and wearing my End the FED tee shirt, a delegate struck up a conversation with me because of my shirt. He was a senior management guy at the 4th largest S & L in California. He told me that was his last year as a delegate because the GOP honchos refused to address the money crisis coming. This man was genuinely angry about the GOP "leadership" and the path they were taking.
He also said it was insane what was going on with banks being forced to do loans for people who simply didn't qualify. He also said on the other side of the house, they were increasing their hiring to handle foreclosures. Yeah, it was insane all right and here we are.
Americans are "taking the banks by the horns" and deciding to just walk away using a new slogan: strategic defaults
More homeowners are opting for 'strategic defaults'
Underwater on their mortgages and angry at banks, more borrowers are choosing to hand over the keys, even if they can afford the payments.
"Wynn Bloch has always dutifully paid her bills and socked away money for retirement. But in December she defaulted on the mortgage on her Palm Desert home, even though she could afford the payments.
"Bloch paid $385,000 for the two-bedroom in 2006, when prices were still surging. Comparable homes are now selling in the low-$200,000s. At 66, the retired psychologist doubted she'd see her investment rebound in her lifetime. Plus, she said she was duped into an expensive loan.
"The way she sees it, big banks that helped fuel the mess all got bailouts while small fry like her are left holding the bag. No more.
"There was not a chance that house was ever going to be worth anywhere near what my mortgage was," said Bloch, who is now renting a few miles away after defaulting on the $310,000 loan. "I haven't cheated or stolen."
Rest at link.
I know this is going to sound harsh, but yes, Mrs. Bloch, you did cheat.
You signed a note for the house knowing the full terms of the loan. She says she was duped. Yes, a lot of people were misled about loans 4-6 years ago during the mortgage heyday. DOJ has gone after a large number of brokers and lenders. Some already convicted and sent off to jail where they belong. They'll get more as time goes on and they process the indictments.
Bloch says she was duped into an "expensive" loan. Well, lady, you agreed to the sales price, a big ticket loan. Now, after the fact, you don't like it. Darn straight guarantee you: there are millions who would like to be able to make their payments and honor their loan with the bank, but have no job. I doubt they feel much sympathy for you.
The real reason Bloch decided to default is she won't get the big return on her investment she thought she would. She gambled the market would make her purchase a cash cow down the line -- even though the most intelligent economists and people like Ron Paul, Dr. Edwin Vieira, Peter Schiff and so many more warned for years what was coming. The warning signals and red flags have been right there for a decade.
Yes, the FED is poison. Yes, the thieves in the U.S. Congress back in late 2008 raped the American people to bail out the Wall Street bankers. But, your obligation is to your loan with the bank who believed you would make the payments. They took you at your word.
Bloch has the money to make the payments, she just doesn't want to. Screw the bank!
The article goes on to say:
"Nearly one-quarter of U.S. mortgages, or about 11 million loans, are "underwater," i.e. the houses are worth less than the balance of their loans. While home values are regaining ground -- median prices rose 10% in Southern California last month to $275,000 compared with a year earlier -- they remain far below the July 2007 peak of $505,000.
"Many homeowners are just coming to grips with the idea that prices will take years to reach the pre-crash peak: as long as 14 years in California, according to economist Chris Thornberg.
"Stuck with properties whose negative equity won't recover for years, and feeling betrayed by financial institutions that bankrolled the frenzy, some homeowners are concluding it's smarter to walk away than to stick it out."
11 million homes under water. I know all about it because we sold our house in Sacramento in 2006. I wanted to sell in summer 2005, but my husband was diagnosed with cancer, so we had to wait while he got treatment. I knew what was coming and it hit the upscale Natomas Park shortly after we closed the deal. A real time tsunami. The house we sold is worth $170,000 less today than when we signed the papers for the sale.
We didn't use our home as an ATM machine and didn't live beyond our means. Hundreds of others were not so fortunate. That once thriving planned development community is foreclosure city, just like Vegas.
I wish people didn't have to dig into their retirement to make ends meet. I wrote a column about this not so long ago: Will you out live your money?
I have a real good friend who lives in the Southern California area. Their house was worth (appraised anyway) $800,000 in 2006. Today, according to www.zillow.com, her house is worth $605,500. They are stuck and will now live there the rest of their lives; her and her husband are both 62. They wouldn't dream of simply walking away from their obligation even if it means digging into his substantial retirement egg. I know because I've had long talks with them about their situation.
I tried to tell them to get out while there was still time, but they didn't want to move until he retires in a few more years. Who wants to move? Raise your hand. Now, they have this enormous house for two people with a huge property tax bill. They could still sell it five years down the road, possibly break even and then get a little house in the mountains like they want. Possible, but not likely.
Instead of paying attention to one of the most important purchases you'll ever make and what's going on around you, millions of Americans chose to remain ignorant and are now paying the price.
Instead of kicking out every incumbent in the Outlaw Congress who has refused to get rid of the FED and instead, skipped along every day borrowing trillions for their social programs instead of seeing the HUGE red lights in their face about Freddie, Fannie and what the banks were doing -- Americans have continued to vote the same thieves back into office and then expect some miracle to save their bacon. Now that the miracle hasn't arrived, the bacon is burnt, they just walk away.
Hello? Go the to the FDIC's web site (fdic.gov) every Friday night. By 10:00 pm EST, they have the weekly posting done for bank closures. Why are these banks going under do ya suppose? Many reasons and if a bank has a thousand Ms. Bloch's for loans, they won't stay solvent. Heck, since our automobiles depreciate so much, why don't we all just walk away from our car loans, too? Screw the banks!!!
I know how horrible it is out there. My niece has a friend whose husband is in the Air Force. Their house in Las Vegas went under water big time. He gets transferred to a base in Florida. What were they going to do? Well, they mailed the bank the keys to the house. Perhaps they should have decided not to buy until they were sure his duty assignment would be more permanent. (Please, no email that I don't understand the military. My husband is a retired Army Colonel who spent 27 years in service, so I do understand.)
I know how terrible things are because I spend a great amount of time researching every day. I know how badly families are hurting. I know Americans are losing their jobs through no fault of their own, while millions of criminals (illegal aliens) are holding jobs they have no legal right to work. Jobs that should be filled by Americans and naturalized citizens, not illegals.
We also know the real unemployment number is 26.2 MILLION. The experts (who don't work for the government and understand fiat currency) believe it will take at least ten years to turn things around. But, we cannot have a recovery without jobs.
We have a real chance to bring millions of jobs home: the bill to get us out of NAFTA and Congress will vote at the end of the year to stay or get out of GATT and the WTO.
I know that won't help a lot of people right now, but this mess has been building for decades and it won't get fixed over night. But, just getting out of NAFTA will reopen factories and jobs.
Stopping the three traitors - Obama, Sen. Juan McCain and Sen. Lindsay Graham - from pushing through amnesty for 20 MILLION illegals is our next major battle while the lawsuits to stop commie care work through the system.
Getting the U.S. out of GATT and the World Trade Organization will bring home millions and millions real jobs that pay good. Jobs that went overseas as soon as the unconstitutional GATT/WTO treaty was signed into law by Marxist Bill Clinton in December 1994.
What I do know is that between the housing market mess and the melt down of commercial properties along with other disasters looming, the worst is yet to come.
Please keep hammering on your Congress critter: Forget this fraud called global warming and cap and trade. Get H.R. 4759 passed and if Comrade Obama vetoes, Congress can over ride him.
Bill To Get The U.S. Out Of NAFTA