What is Digg?80 Comments
- austroLogi, on 03/07/2009, -12/+27Don't you feel just wonderful, while you rent or pay off your mortgage your next door neighbor buys into a house that is twice the size of yours and they don't make as much money as you.. and now they are getting a pass.
Don't you just love Obama and his "Social Justice, socialism, communism, or whatever you want to call this joke of an administration. - Linguo, on 03/06/2009, -3/+16Oh god. I wish these guys all the success. ***** quicken.
http://blogs.wsj.com/digits/2009/02/24/intuit-defe ... - gcnaddict, on 03/07/2009, -1/+10It's a bubble, but the plan isn't to let the loans default. The plan is to have the loans forcibly repaid, which can easily be done (unlike with subprime loans).
If all else fails, the money can simply come back through taxes, though I'm hedging my bets on jobs recovering, leading to people spending money, leading to businesses gaining more money, leading to businesses having higher credit ratings after paying off loans, leading to more loans, leading to interest payments being made since these businesses will expand and people will keep paying money. Who gets the interest? Well, given that the government will be owning huge chunks of these banks... a good amount of it will go into government coffers.
Simple logic. - justjoehere, on 03/07/2009, -2/+10A foreclosed property does not tank your property value in and of itself; nor does it breed crime. Quit inflaming the situation.
- tuxthepenguin, on 03/06/2009, -15/+23It won't help anyone, Obama is just creating another bubble that will burst in a few years.
- ColonialRule, on 03/07/2009, -5/+12Simple.
Everyone who bough a subprime mortgage should automatically be dis-qualified. - Garlik, on 03/07/2009, -1/+7Whom
- Eorster, on 03/07/2009, -1/+7What is forming hear is resentment of those that may get a pass on their being irresponsible, and it is going to get much worse as time goes on. I wonder if anyone has considered just how many people are going to feel like they were crapped on because they played by the rules, the rules being market forces and contract law. Some may say we need to help people that have lost their job and will now lose their homes. I say BS we do. I came form a family that lost their home in the early eighties because of a thing they call a recession, and that experience shaped the way I view my responsibilities and inability to rely on others to save the day. People had to play by the rules then, we should play by the same rules now.
- pacerx, on 03/07/2009, -0/+5I don't think you understand. Lowering the interest rate could have a huge impact on amount paid per month.
It could be hundreds of dollars freed up temporarily. - akchrs, on 03/07/2009, -0/+4@lordmike This should help. http://www.the-m-factor.com/
- PhotoJustin, on 03/07/2009, -0/+4I'm going to go ahead and correct myself - the bill would allow bankruptcy judges to go as low as 2% APR.
It should be noted that these reductions in interest and principal come out of the loaners pocket, not the government (except for some cases of FHA or VA insured mortgages).
If a bank loans you $200k for a house, and it's now worth $100k, it's in their best interest to let you meet somewhere in the middle, say $150k, and keep you in the house, than to be stuck with a $100k lemon. The bill allows the bank to recoup some of the losses if/when the house is sold for a profit. Seems fair to me - the bank effed up too, and stands to lose an awful lot. - sh4rkb1t3, on 03/07/2009, -2/+6Will it help?
Short answer: No.
Long answer: Noooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo. - kooredaan, on 03/07/2009, -1/+5Was it just me or was that specific article really not that helpful?
And I'll wait a few months before I judge the actual program... - inactive, on 03/07/2009, -0/+4Better yet, Obama should reward all those people who've acted responsibly, buying house that were within their budget. Bonus monies whould be paid to those of us who met our monthly mortgage obligations every month without fail. And grand prize money should go to those that paid off their mortgage.
Instead I get to help finance some ass-munch whose found himself underwater in his McMansion. - edstate, on 03/06/2009, -2/+5Rent!
- inactive, on 03/07/2009, -10/+13Deadbeats who, thanks to a 2% APR 40-year Obumma mortgage, get to own a house will be subsidized to the tune of hundreds of housands dollars by their responsible neighbors, including renters who can not afford to buy a condo, much less a house.
- Dinsdale77, on 03/06/2009, -4/+7Wouldn't it be funny if the answer was Rick Santelli?
- emmeron, on 03/07/2009, -0/+3Due to job loss? The article did say it was only for people gainfully employed, and they'd need to prove it. Where are you getting that from?
- Eorster, on 03/07/2009, -2/+5Uhh, yea. I hate people that are so stupid they think their last name is Jones when it really is not. You over bought and over paid you suffer the consequences, let the market decide values.
- Qboy316, on 03/07/2009, -1/+3oh, so u dont like it when people bash the president, even though he thinks its the right decision, even if the people dont agree? u better get used to it. and u must not know what permanently means...
- Barackalypse, on 03/07/2009, -2/+4Why are we helping people with loans of up to $729,750? Surely even with relaxed lending standards the people who could qualify for a loan that big count as the "rich" people Obama wants to tax.
FTA: "This specific program helps people who have primary residence loans that are owned or backed by Fannie Mae and Freddie Mac up to $729,750" - countupir, on 03/07/2009, -0/+2***** Intuit. Don't stop with Quicken.
- URnotheonly1, on 03/07/2009, -0/+2wall street got loans too
- inactive, on 03/07/2009, -2/+4For a 2 percent savings, only the same idiot that got in too deep, would opt back in for a house that is still way upside down. This only helps the people that are dumb enough to lose the house again.
- gleongelpi, on 03/07/2009, -0/+2This will not work. It is self-evident. If you need it explained to you, it is because you don't have the ability to understand it anyway.
The real solution to the problem, a simple solution at that, has been ignored, shoved aside, by an administration (the second in a row) that is really not concerned with solving the problem, but that must have some sort of alterior motivation. Here it is:
Turn the Mortgage Interest Deduction and the Property Tax Deduction on Schedule A into Refundable Credits, with a maximum combined amount of $20,000. Lower this amount $5,000 each year until it ceases to be. Everybody is entitle to it.
Remove Schedule A. In other words: no deduction.
Preserve all credits for two years, then get rid of them at the same time as the Housing Credits mentioned above.
Raise the personal exemption to $20,000 right away. Then increase it to $100,000 over a five year period, at regular intervals.
Make everybody file as individuals regardless of their marital status or other personal/family condition. - Barackalypse, on 03/07/2009, -2/+4Obama hasn't done anything with taxes, but he has spent $790 billion that we'll have to pay for eventually.
- PhotoJustin, on 03/07/2009, -1/+3The fed loans out money at .5% right now. A 2% APR is significantly higher than the rate big borrowers get. And the article refers to a reduction of up to 2% in interest rate. Unless you have a 4% APR right now (lucky you!), you're not gonna be paying 2%.
- organik, on 03/07/2009, -4/+6Why do Republicans hate America?
Just wondering.
Also, why does the "liberal" media constantly refer to Obama raising taxes when he has in fact lowered them for 95% of Americans, PERMANENTLY! I wonder if rich people own the media? - Pandalume, on 03/07/2009, -2/+4I know that this is the popular opposition to Obama's plan, but I wonder how prevalent that kind of situation really is. First of all, I don't know of too many neighborhoods where the houses are of such different size and value (my next door neighbor's place is around the same size as mine).
More importantly though, I wonder what the ratio is of people who greedily overreached to honest folk who just wanted to buy a house when the rates seemed to be in their favor. - deema1, on 03/07/2009, -2/+4The "fix" helps the same type of people who help further the Socialist strategy as outlined by Cloward-Piven. It's just another way to transfer wealth.
http://www.americanthinker.com/2008/09/barack_obam ... - shig, on 03/07/2009, -0/+2To them, foreclosures are a social malady instead of the natural product of an uncertain economic future.
They can say that their house is worth a trillion dollars for all I care, but if there is no buyer, that figure has little practical value. Not to worry, though, the legislature has heard their pleas and is now taking up the business of fixing prices... - PhotoJustin, on 03/07/2009, -0/+2You have to be an idiot.
- PhotoJustin, on 03/07/2009, -0/+2Yeah, they are referring to a 2% reduction in your interest rate, not in your payment. Mortgage payments are mostly interest, esp. at the beginning, so you're looking at a significant difference.
The fed loans out money at something like 1/2% these days, why not just hook a struggling homeowner with a better interest rate? Big borrowers get that every day. - Eorster, on 03/07/2009, -0/+2Seriously, this is exactly what has happened to me. To boot my property tax has gone up 2k because they over paid for the property. Now they get to have a reprieve on the outrageous interest rate they agreed to when they took out their ARM lier loan and even get to remove principle to boot. I for one don't give a crap about foreclosures or the property value going down. I don't want to pay outrageous property taxes on my home because someone was able to lie about their income to get a ***** loan they could not afford, on a house they thought they could sell 6 months later for a huge profit. Let the market decide home values and those that over bought with ARM or lier loans can rent. Where is my property tax bail out?
- Mpwns, on 03/07/2009, -0/+1i guess no one noticed i said "all your bills". chances are people are not just behind with there house. also what happens if you lose your job under this program? do you lose your house? or does your rate go back up? gotta look at the long term as well as the short. its another plan that looks good on paper but screws us over in the long term should we lose our job.
- Pottersquash, on 03/07/2009, -1/+2you talking bout the 4 term guy with the huge memorial?
- inactive, on 03/07/2009, -0/+1You have to be white.
- methdwman3, on 03/07/2009, -0/+1So I'm supposed to believe the people who can't keep up with their current debt will pay back this loan?
- GoldenPearl, on 03/07/2009, -4/+5It helps Obama get reelected when people are stupid enough to think this helps them, given the entire economy has't collapsed by then.
- justjoehere, on 03/07/2009, -0/+1FDR
'nuff said. - inactive, on 04/28/2009, -0/+1where was obama born?
- emmeron, on 03/07/2009, -2/+3Value isn't anything beyond a perception -- if I can convince you to sell me your house for fifty thousand dollars, that's what it's worth to you, or you're a fool. If you paid one hundred thousand for it, that doesn't mean it's worth that to anyone else.
As for the "***** you, got mine" part... in short, yes. Absolutely. I worked and continue to work for mine, made good choices that have landed me in a good spot. I HATE, with every fiber in my being, that the country as a whole should pay for fools who made bad choices. Where's the responsibility of the individuals? We're telling them "nope, it's cool -- screw up everything on everyone's dime."
Bottom line: if my neighbors took out loans that I'm getting taxed or losing value from my money over, yes. I do hate them that much, now. - RedLTeut, on 03/08/2009, -0/+1To all those who don't like the plan, this is the only measure that tries to fix things from the other end, not from the banking end. The alternative would be to foreclose, and then reimburse the banks. At least among the alternatives considered, and granted that the goverment may have a blind spot there.
- coreman, on 03/08/2009, -0/+1Smokers, obese people, drinkers, etc. all get to enjoy basically the same medical insurance rates that you, mr (or mrs) organic food eating, excercise 30 minutes a day a week, blah blah blah, and if you need a liver or heart transplant and one of them does, it is entirely feasible that THEY get the transplant before you do! The injustice!!!
So on one hand, we're all jealous of the people who have done well over the years. On the other hand, we're jealous because someone else we think is less deserving than us gets a "handout" from the government, and cannot see ANY benefit at all on our side of the equation at all...
So typical, I guess.
Hey, if you've been responsible money-wise over time, take some faith that you will still likely waaayyy outperform over the next 20 years the schmucks who are possibly eligible for this benefit. You're probably debt-free or close to it, living well within your means, have a sizable emergency fund set up, etc., or are well on track. Why worry about your neighbor who is on food stamps, but somehow was able to buy a $50K pickup truck, 2 hot new ATVs, a nice boat, 50" flat-screen TV, etc.?
What your irresponsible money-stupid neighbors is so ***** minor compared to what the Banksters, et al. have pulled off over the last few years. $2 trillion dollars to banks, wall street firms, etc. so far... - aspec, on 03/07/2009, -1/+2Wouldn't you have to pay that refund back? Didn't seem like much of a deal to me.
- josejimenez, on 03/07/2009, -0/+1Buried because the submitter and writer at mint.com didn't really read the mortgage modification rules. The new mortgage rules will reduce the payments so that they are affordable by deferring portions of the balance. So this is alot like having to pay a balloon payment on a car lease at the end of the lease.
In other words, if someone brought a house for $350k two years ago, but can only afford a $200k house today, the new plan will temporarily defer the $150k however interest continues to accrue and they still owe that $150k. This looks similar to the pay-what-you-can-afford Option ARMs. - justjoehere, on 03/07/2009, -0/+1UCLA study...
http://newsroom.ucla.edu/portal/ucla/FDR-s-Policie ... - 17999, on 03/07/2009, -1/+2It helps lawyers and "loan modification specialists" who, coincidentally, look remarkably like the douchebags who did the spadework on digging this hole in the first place.
First of all, $75 bil aint enough to fix the situation.
Secondly, California is practically unaffected by this, since most loans here were jumbo/nonconforming/screwball loans, not covered.
Third, 6 months after they rewrite, 5 months and 28 days after the lawyers and middlemen have cashed their checks, the morons (i.e. homeowners in question) will be back in the hole.
/sold when my house was at double
//renting
///pissed off that this is just delaying the inevitable. - gkiltz, on 03/07/2009, -0/+1The combination of the economy, laws that have been in place since the Clinton years, and the volume of the right wing DO impose severe limits on who CAN be helped!
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