Bush's plan for the Federal Government to take over ownership of all the houses in America?

President George W Bush has outlined plans to freeze rates on sub-prime mortgages for five years to help people hit by the US housing market crisis.

Homeowners seeking assistance have three options. They can either have their payments frozen at an introductory rate for five years, refinance their mortgage at a lower rate or refinance through the Federal Housing Administration.

Source
In my opinion, from researching these three options, the most attractive option is the FHA loan.

So now instead of banks owning everyone's home, the Federal Government's FHA will own everyone's home.

Seems to me like a plan to get us all to give our property to the Federal Government.

[edit on 6-12-2007 by craig732]

[edit on 6-12-2007 by craig732]

misleading title of thread.

your source clearly states-'homeowners SEEKING assistance'
your title clearly states-'take over ownership of ALL the houses...'

big difference, not to mention that these people have options. the fed isnt going to just come in and 'Take Ownership' instead, ownership will be GIVEN to the fed by people who cant pay their bills.

at least for now....

[edit on 12/6/2007 by agent violet]

It's really quite simple. If people wouldn't sign loans with such ridiculous terms we wouldn't even be reading about this.

Instead, those of us who are responsible and take loans for reasonable amounts, suffer. When our ARM was up two years ago we refinanced into a fixed loan. Now, this fixed loan has a slightly higher rate than the ARM. Can I fall back on the ARM and take a 5-year fixed rate at that 2-year ARM rate?

I was responsible and paid my loan according to its terms, and then refinanced ahead of time because I knew the first adjustment on an ARM is usually the maximum adjustment allowed per the terms of the loan.

I say let the government seize these homes and use the proceeds to pay for the social services that are out of control in this country. Neither the lenders nor the buyers should benefit here; and of course, they both are.

Originally posted by agent violet
misleading title of thread.

There is a question mark after the title, and this is posted in Skunk Works. The thread is meant to encourage discussion of this issue. Did you feel mislead?

When I first started hearing on the news about the housing issue, I have to admit that I also thought it was a way for the federal government to own those people's houses. I was hoping I was being a bit paranoid. I really think that is where this whole thing is going.

I own my property and house and have no loans against them. It isn't a mansion or the best farm in the world but it could be worst. Only real worry for ownership now is the tax man.

Didn't have the best rates through my time but I dealt with it.

I also haven't gotten any breaks. Just did it on my own. Bush will have to come up with another plan for this person. I'm sure someone is working on that now or the near future.

This thread, and its title, are completely misleading. It has already been mentioned in this thread, but I'll echo the sentiment again: these people have a CHOICE. Aside from that, I sincerely doubt that it is the goal of the federal government to own all of the homes in America. The idea is absurd anyway. The government can't own homes in America and simply rent them out to people. If someone's loan is forclosed, then the government would have to put the home up for auction just as a bank would have to. They need to get their money back just like the banks do.

Secondly, and this may sound cruel, but I have little sympathy for those who went out and bought expensive homes without a fixed rate mortgage. The American people need to learn to be responsible with their finances, without counting on the federal government to come and bail them out. I find it completely absurd when I hear about people taking out home equity loans for absurd things like vacations. Those are the kind of people who don't deserve to be sucking up our tax dollars.

The difference in this case is that if nothing is done our financial system falls apart. Banks and other lenders will no longer be able to remain solvent. No one else will lend money except at skyhigh rates. Hate this as you will, but failure to stem the crash will mean great suffering for everyone. Normally you would want the market to settle this but it can't without causing economic destruction for most everyone. It would be the great depression magnified many times over.

Originally posted by Rasputin13
This thread, and its title, are completely misleading.

I reply to you with the same reply I gave the other poster who said this:

There is a question mark after the title, and this is posted in Skunk Works. The thread is meant to encourage discussion of this issue. Did you feel mislead?

In a roundabout way the thread title may not really to far off.

I believe the government has become either a servant of big business and banking or outright owned.

Seems what business wants it gets. The money controls just about everything including making or preventing loss of money. Just about the only way to make a change in the world is to make the situation to change unprofitable.

U.S. government expected to seize Fannie Mae, Freddie Mac

I wanted to bring this thread back to life, considering the information contained in the above link.

These 2 mortgage agencies own approximately HALF of all US mortgages.

Maybe this thread should be moved out of Skunk Works now?

When I started this thread, people thought it was ridiculous that the federal government would take over ownership of people's homes.

3 years later we have this news report:

Fannie Mae and Freddie Mac took over a foreclosed home roughly every 90 seconds during the first three months of the year. They owned 163,828 houses at the end of March,

Anyone who posted earlier here care to change their opinions now?

So maybe it wasn't Bush's plan. Apparently the some of the government's plans are long term and span many years and presidents.