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| Economy | |
| Obama administration to bailout homeowners | |
| 2010-03-27 | |
| [Iran Press TV Latest] Government aid is underway for homeowners in the US as President Barack Obama's administration has decided to erase mortgages and lower payments in a bid to stem foreclosures. The Obama administration on Friday pledged USD 14 billion in aid to provide lenders with incentives to write off some mortgage debts and reduce payments for the unemployed.
The aid expansion comes as the administration is under growing pressure from Congress to tackle the foreclosure crisis, which is hurting the economy and exposing millions of Americans to the risk of losing their homes. The new initiatives could well provoke protests among those who have managed to pay their debts and are not in trouble. "Our housing initiatives must balance the need to help responsible homeowners struggling to stay in their homes, with the recognition that we cannot and should not help everyone," the Treasury said in a statement according to a New York Times report on Friday. The government aid would not include investors and speculators, as well as wealthy Americans living in million dollar homes or people defaulting on vacation homes, the statement said. Around 11 million households, or a fifth of those with mortgages, fall in this category, known as "underwater" position. "The government is seeking to persuade people to stay in their homes by aligning the mortgage debt with the asset value, which is the only viable path to real housing stability," said a source who was briefed on the government's plans. Dennis Kucinich, the Democratic Representative from Ohio, who threw his weight behind Obama on this week's landmark healthcare legislation, told the administration that he had not seen any "bold, new" initiatives for underwater borrowers. "What are we doing to help those people who owe more on their homes than the home is worth?" Kucinich asked. | |
| Posted by:Fred |
| #29 Agreed, abu. Plus the moon's almost full. Not meant to be snarky, there's some evidence for physical, if subtle, influences on emotions and bodily states when it's bigger/closer ... |
| Posted by: lotp 2010-03-27 22:10 |
| #28 ruffled feathers that may occur form the following comment are non-intentional: seems that a lot of folks here are pretty testy lately and looking for a fight over slights that might otherwise be ignored. my dime-store psychology is that we are pretty pissed about recent events and lashing out a bit. seem to have seen more dust-ups the last week than the prior month and a half. might we all just take a deep breath and try to regain the 'civil' in our well reasoned discourse? |
| Posted by: abu do you love 2010-03-27 20:57 |
| #27 Hey OSAMABAMA- How about paying off my kids student loans wasted on careers that you let H1Bs and offshore type do asshole! I don't enjoy paying for them! Maybe your fellow travelers will foot the bill? |
| Posted by: 3dc 2010-03-27 20:36 |
| #26 tw, Shipman with a clean shirt and dusted computer? LOL. |
| Posted by: Deacon Blues 2010-03-27 19:54 |
| #25 Not so different than the formula I used...an understanding of finances and desire to own property correctly is an increasingly rare thing for any American. Moreso as/if people become skittish that property owners will be stuck with the bill (see Greensburg KS). And, unfortunately, that type of behavior may be a consequence for the good, intelligent types...imagine banks forced to give loans to people who have no intention to pay them off, and no consequence to the lendee unless we're talking debtor's prison or work-it-off programs. Or it could just be for those who are currently behind, figured by demographic and debt amount, in which case those of us who have been making the payments are at the bottom of the list whether we like it or not. |
| Posted by: swksvolFF 2010-03-27 17:33 |
| #24 But lotp does read deeper into the text than most, regardless of sex. Yes, but I'm convinced that that's because she's smarter than most and that aint fair! |
| Posted by: Mike N. 2010-03-27 16:10 |
| #23 surprisingly |
| Posted by: Frank G 2010-03-27 16:04 |
| #22 you can get the western accounts anywhere. Fred has links to Iran Press TV, Dawn, et al, so you see how it's seen overseas by the rubes |
| Posted by: Frank G 2010-03-27 16:01 |
| #21 Why are posts from Iran Press on fairly average topics being posted? I understand posting North Korea's bile filled rants, but there has to be hundreds of western press accounts of this. |
| Posted by: rjschwarz 2010-03-27 15:21 |
| #20 Pooh, Mike. But lotp does read deeper into the text than most, regardless of sex. Shipman dear, you don't like Besoeker. Fine, we'll take that as read from now on -- you need not comment on that any more. You have so much more to bring to the conversation. I picture you in a clean shirt, tucked in, having dusted the room before you sit down to the computer. ;-) |
| Posted by: trailing wife 2010-03-27 14:47 |
| #19 It always takes a female to make peace. Us males just twist in the wind on those ventures. |
| Posted by: Mike N. 2010-03-27 12:58 |
| #18 My fault for not being clearer; lotp has it exactly right. Apology accepted. |
| Posted by: Glenmore 2010-03-27 12:55 |
| #17 Well if I missed the meaning, which is possible, then I do apologize to Glenmore and fellow readers. Like many here, I'm a bit put off of late with all of this beltway, taxpayer funded largesse and scheme of the week programmes for fixed income people like myself. |
| Posted by: Besoeker 2010-03-27 12:47 |
| #16 You appear to have missed the unhappy tone that was clearly in Glenmore's comment, Besoeker. Given Glenmore's long history of posting here it's hard to see how a fair reading would support the idea that he liked the idea. He was simply noting that the bailout would have that sort of consequence, so far as I can see. |
| Posted by: lotp 2010-03-27 12:05 |
| #15 Thanks for your agreement and confidence Mike. Bragging about one's children is entirely appropriate, I do it myself. Publisizing or celebrating the fact that they're subsisting and or "partying" on my dime, ....not so much. A bit too much information for my liking. A poor choice of words possibly, that "getting your money" but one should keep potentially inflamamtory family financial issues to him or herself. The current administration will soon be very deep into our pockets. Financial matters are quite sensitive at the moment. No apology necessary, none forthcoming. |
| Posted by: Besoeker 2010-03-27 12:01 |
| #14 Got to help those oppressed "undocumented" workers with "no-doc" home loans. You know, the ones that ACORN helped obtain financing from those MEAN banks. |
| Posted by: DMFD 2010-03-27 11:19 |
| #13 'Lol mate! Southron... or Afriikaner... still can't remember. Speaks 7 languages and a privy to 2 war fighting commands. Don't annoy him Mike. He's a treasure. |
| Posted by: Shipman 2010-03-27 11:00 |
| #12 In this case it appears 'callinng them like you see them = excuse for being an asshole.' I agree with some of the less popular statements you've made here at the Burg, but taking a shot at the mans child and eventual grandchildren is nothing less than being an ass. You were out of line there. An apology would be the right thing to do. |
| Posted by: Mike N. 2010-03-27 10:55 |
| #11 And this would make her eligible to get your money so she can go party. And the above IS called for? Sorry mate, I calls em like I see's em. Always have, always will. |
| Posted by: Besoeker 2010-03-27 10:46 |
| #10 Beso, It was her call, she's an adult. And done just before the Obama-bucks came out. I did not even like the idea. My contribution was help with closing costs. I did not even see the place until she'd been in it a while - but the 'redevelopment' does seem to have worked, at least so far. (If you meant the 'grandchildren' comment to come across the way it did to me, I think it was uncalled-for.) |
| Posted by: Glenmore 2010-03-27 10:34 |
| #9 Nicely done Glenmore, downpayment, tax rebate, etc. Anythng for the kids right? As the responsible party ends, I hope she brings you many 'redevelopment neighborhood' grandchildren. |
| Posted by: Besoeker 2010-03-27 09:24 |
| #8 Daughter bought a house. Splits costs with housemate. Buys health insurance. Is solvent on $8 per hour. Not much income, but good credit, 20% down, low interest rates, modest house, neighborhood redevelopment tax abatement, catastrophic insurance. For a flaming liberal she's pretty smart and responsible. And this would make her eligible to get your money so she can go party. |
| Posted by: Glenmore 2010-03-27 09:14 |
| #7 I can't wait. I'm underwater, primary home, not speculation, not weathly - at least, way under $250k per year. On the other hand, I am not disadvantaged, except for not being Democratic. On the third hand, I wouldn't be in a place this nice without the easy lending of 2006. The money was easy, but the price inflated (metro DC). |
| Posted by: Bobby 2010-03-27 09:01 |
| #6 If borrowers get mortgage debt actually forgiven rather than rolled forward, doesn't it count as income? With taxes due? Which reduces available income so they'll still be insolvent. Rinse and repeat? |
| Posted by: Glenmore 2010-03-27 09:01 |
| #5 The government aid would not include investors and speculators, as well as wealthy Americans living in million dollar homes or people defaulting on vacation homes, the statement said. But of course! Hard working achievers are the funding base of social justice. |
| Posted by: Besoeker 2010-03-27 08:17 |
| #4 usually when banks offer "forbearance" on loans, the interest foregone is merely tacked on to the principle for repayment later when the borrower's circumstances improve. That's one reason student loans can be such a debacle. Might actually make the situation worse. |
| Posted by: Menhadden Whick7273 2010-03-27 07:57 |
| #3 Asasuming they don't give voting rights to huge numbers of illegal immigrants before then. I was expecting that for the 2012 election but maybe they'll rush it forward for the Fall. They've shown they're shameless about legalities. |
| Posted by: lotp 2010-03-27 06:31 |
| #2 Couple this with giving amnesty to 20 million illegals and not only will there be war, there'll be a massive blowout in November. Bring it, 0bama! |
| Posted by: Gomez Threter7450 2010-03-27 01:39 |
| #1 This is a bunch of bull! Watch who gets it. Those of us that work for a living but are "underwater" won't qualify. They only people that qualify will be the ones that were given the predator loans, the ones that never really qualified to buy in the first place, hense the minority unemployed. While the middle class get stiffed. He is really trying to start a war... |
| Posted by: 49 Pan 2010-03-27 00:50 |