Bush administration: No more help coming for Homeowners

Reports that help to homeowners who owe more on their mortgages than their houses are worth are completely false!

White House press secretary Dana Perino asserted that some within the government were trying to build support for the plan through leaks to the media.

"I've seen this happen in Washington before where people float out ideas in the media," she said. "What I can tell you is that we're in the middle of analyzing several different proposals."

The Official Line?

The White House said it has already acted to help homeowners. White House spokesman Carlton Carroll said that almost 3 million foreclosures have been prevented using federal programs since the beginning of the housing crisis.

An odd thing to say as we still have around 2,700 Americans receiving a foreclosure notice each day!

so far, the administration has not earmarked any of the $700 billion for helping homeowners, a fact lamented publicly by Ms. Bair.

Legislators have allocated $250 billion for the purchase of preferred stock in banks. Other financial institutions, including insurance companies and auto-finance companies, are looking for a share. Congress has leverage because the administration must get congressional authorization to spend any amount above $350 billion

In other words things will only get worse from here

News source

You bought the house? You pay for it!

I'm sure there are thousands of people late on their car payments too, you want to government to help out there also?



[edit on 31-10-2008 by RRconservative]

I know stories like mine have been echoed a thousand times, but I've got to add mine. I bought a tiny house in a bad neighborhood because that was what i could afford. I did NOT buy a million dollar house and I most certainly live within my means. Why on EARTH do I want to help people who are not responsible with their financial well being?

White House won't help 'em? GOOD. No one's going to learn their lesson when "daddy" is picking up after your every mistake.

Whether we agree with a bailout for home owners or not is a mute issue...
All the experts agree that until we can turn around the housing crises the economy will not rebound...

I do agree with those who argue, "Why should my tax dollars help out those who acted irresponsibly"? After all I didn't take out a second or third mortgage to buy a new Lexus why should I help them out?

Well I wouldn't but this news story has a deeper meaning.
they now think that by next summer we'll see values drop 40% they think by the time whoever becomes the next president, takes office we'll have just over three million jobless folks and another 1.2 million foreclosed homes....

the experts who were pushing for a homeowner bailout were basically saying the wanted the FED to completely take over the mortgage business, forcefully, if need be! claiming that the only way to turn the economy around is to first fix the housing problem...Those same people haven't gone away...they will keep pushing for this plan... I can see their point but even at 0% interest government secured loan, how will people be able to buy a home when jobs keep disappearing faster than were making new ones?/?

[edit on 31-10-2008 by DaddyBare]

Originally posted by DaddyBare
Whether we agree with a bailout for home owners or not is a mute issue...
All the experts agree that until we can turn around the housing crises the economy will not rebound...

I do agree with those who argue, "Why should my tax dollars help out those who acted irresponsibly"? After all I didn't take out a second or third mortgage to buy a new Lexus why should I help them out?

Well I wouldn't but this news story has a deeper meaning.
they now think that by next summer we'll see values drop 40% they think by the time whoever becomes the nest president, takes office we'll have just over three million jobless folks and another 1.2 million foreclosed homes....

the experts who were pushing for a homeowner bailout were basically saying the wanted the FED to completely take over the mortgage business, forcefully, if need be! claiming that the only way to turn the economy around is to first fix the housing problem...Those same people haven't gone away...they will keep pushing for this plan... I can see their point but even at 0% interest government secured loan, how will people be able to buy a home when jobs keep disappearing faster than were making new ones?/?

Think of if as the current spate of foreclosures as being that little snowball at the top of a hill . . . no . . . a Mountain. Each foreclosure that occurs now nudges that snowball closer and closer to the edge in that it nudges down the value of the surrounding homes.

Any homeowner knows that in addition to the physical makeup of your house, the sale value of the surrounding homes plays a pretty large roll in the assessed value of your home.

Think of identical adjoining homes each valued at $150,000. The owners of home one lose it to foreclosure. The bank holds that, and a whack of others so they just want it off the books. They throw it on the market for for $100,000. Given the depressed state of your local economy, the house does not sell real fast.

In the meantime, the mortgage comes due on home two. You need $120,000. They come out and appraise it as part of that process. Given the market, they appraise it at $100,000.

Owner of home two is now in no better position than the owner of home one . . . no mortgage . . .no home . . . due to no real fault of the owner of home two.

They cycle begins to repeat itself over and over.

The snowball starts down the hill, picking up momentum along the way until you have an avalanche . . .

That's where we're headed with this. As distasteful as it may sound to 'bail' out these folks, it may serve our best interests in the not too distant future.

The smaller banks that didn't get in on gambling on the credit markets are screaming the same thing about the big bank bailouts . . . the thing is, if they don't find a fix to the big bank issues, the little banks don't stand a chance when the run on financial institutions begins.

It's a gigantic honkin' mess, and in typical short-sighted fashion, the feds seem to only want to fix what will help their cronies without realizing the negative drain of losses by the little guy will be the anvil that locks the drowning economy in with Davey Jones.

And this is how bad it actually is . . . YIKES

At least 7.5 million Americans owe more on their mortgages than their homes are currently worth, according to a real estate research firm's report released Friday. In other words: If they sold their homes today, they'd have to bring a check to the closing. Ouch.

Originally posted by RRconservative
You bought the house? You pay for it!

I'm sure there are thousands of people late on their car payments too, you want to government to help out there also?



[edit on 31-10-2008 by RRconservative]

The Corporations that screwed up the economy srewed up why exactly is it ok to bail the rich out and spit on the poor. Double Standards

Originally posted by ATruGod

The Corporations that screwed up the economy srewed up why exactly is it ok to bail the rich out and spit on the poor. Double Standards

To true and these very same Corporations (Hedge funds managers) have already stated any attempts to write down there securities will be met with court action....

in other words they don't care who or how many people the kick out of there homes they want their money and not just some of... but all of it ... and H-ell with the FED