(Is anyone shocked?) Banks will get the biggest benefit from an Obama administration housing program designed to help unemployed homeowners escape foreclosure. Housing experts expressed concern that banks, not homeowners, will be helped by the White House's $3 billion funding infusion — $2 billion from the Treasury Department and another $1 billion from the Housing and Urban Development Department... [more]
(Is anyone shocked?)
Banks will get the biggest benefit from an Obama administration housing program designed to help unemployed homeowners escape foreclosure.
Housing experts expressed concern that banks, not homeowners, will be helped by the White House's $3 billion funding infusion — $2 billion from the Treasury Department and another $1 billion from the Housing and Urban Development Department — going to those states hit hardest by the housing market crash and unemployment.
http://thehill.com/blogs/on-the-money/banking-financial-institutions/114349-banks-to-benefit-most-from-white-house-program-to-stave-off-foreclosures[less]
Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009
""It's targeted well toward people facing a temporary situation when they can't pay their mortgage because of unemployment,""
People who've been unemployed for more than a year don't need yet another LOAN ... they need debt wiped off the books completely so they can start fresh when they DO find employment -- especially since in many cases, any employment they DO find will pay considerably less than what they made before.
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Response by Riversider
about 16 years ago
Posts: 13573
Member since: Apr 2009
In hind sight, it might have been better to have handled this via bankruptcy judges as was the original proposal. Feels like a Morton's choice however, I am not a huge fan of HAMP and the other programs. You get the gov't involved and everyone's looking to game the system, banks,borrowers, servicers, lawyers, brokers,,, EVERYONE
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Response by columbiacounty
about 16 years ago
Posts: 12708
Member since: Jan 2009
rent stabilizer---all you do is bash and bash and bash. there are no solutions to this problem that don't involve someone getting hurt and someone being treated unfairly. implying that this is somehow a bank bailout is absurd. handling this through bankruptcy would overwhelm that system.
we are in a mess that has no easy solutions; nothing is helped by people on the sidelines endlessly bashing every proposal.
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Response by pulaski
about 16 years ago
Posts: 824
Member since: Mar 2009
"they need debt wiped off the books completely" - and who's going to pay for their mistakes? 'Yeah, I bought a house I couldn't afford because I thought I could flip it and get rich quick and then the economy tanked, I lost my job and I can't find a new one, please bail me out...' Whatever happened to personal responsibility? Whatever happened to corporate ethics as this applies to all the banksters, too.
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Response by NYCMatt
about 16 years ago
Posts: 7523
Member since: May 2009
"Whatever happened to personal responsibility?"
What exactly is "irresponsible" about buying within your means, then losing your job for 12, 16, even 18 months, not being able to pay your mortgage for months, and requiring the banks (who fucked up the economy in the first place) to give you a break?
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Response by Riversider
about 16 years ago
Posts: 13573
Member since: Apr 2009
What ever happend to the second lien being junior to the first lien? And why is it to the home owners advantage to keep paying a mortgage worth more than the house. Anything short of going through a formal foreclosure process risks someone gaming the system.
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Response by ProperService
about 16 years ago
Posts: 207
Member since: Jun 2008
Wow, the entitlement complex is in full swing. I suggest hara-kiri -- death before dishonor --, but you woundn't know anything about that.
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Response by Riversider
about 16 years ago
Posts: 13573
Member since: Apr 2009
problem with entitlements is soon after people feel entitled
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Response by bystander
about 16 years ago
Posts: 32
Member since: Feb 2009
No risk taken by buyer with 0 or little down payment
No risk taken by bank – mortgage sold to investors or government agency
The taxpayer is the lender of last resorts and takes all the risks.
""It's targeted well toward people facing a temporary situation when they can't pay their mortgage because of unemployment,""
People who've been unemployed for more than a year don't need yet another LOAN ... they need debt wiped off the books completely so they can start fresh when they DO find employment -- especially since in many cases, any employment they DO find will pay considerably less than what they made before.
In hind sight, it might have been better to have handled this via bankruptcy judges as was the original proposal. Feels like a Morton's choice however, I am not a huge fan of HAMP and the other programs. You get the gov't involved and everyone's looking to game the system, banks,borrowers, servicers, lawyers, brokers,,, EVERYONE
rent stabilizer---all you do is bash and bash and bash. there are no solutions to this problem that don't involve someone getting hurt and someone being treated unfairly. implying that this is somehow a bank bailout is absurd. handling this through bankruptcy would overwhelm that system.
we are in a mess that has no easy solutions; nothing is helped by people on the sidelines endlessly bashing every proposal.
"they need debt wiped off the books completely" - and who's going to pay for their mistakes? 'Yeah, I bought a house I couldn't afford because I thought I could flip it and get rich quick and then the economy tanked, I lost my job and I can't find a new one, please bail me out...' Whatever happened to personal responsibility? Whatever happened to corporate ethics as this applies to all the banksters, too.
"Whatever happened to personal responsibility?"
What exactly is "irresponsible" about buying within your means, then losing your job for 12, 16, even 18 months, not being able to pay your mortgage for months, and requiring the banks (who fucked up the economy in the first place) to give you a break?
What ever happend to the second lien being junior to the first lien? And why is it to the home owners advantage to keep paying a mortgage worth more than the house. Anything short of going through a formal foreclosure process risks someone gaming the system.
Wow, the entitlement complex is in full swing. I suggest hara-kiri -- death before dishonor --, but you woundn't know anything about that.
problem with entitlements is soon after people feel entitled
No risk taken by buyer with 0 or little down payment
No risk taken by bank – mortgage sold to investors or government agency
The taxpayer is the lender of last resorts and takes all the risks.