Obama: Aid 9 million homeowners

We are ALL on Section 8 Now LOL

Seriously - Here's The White House Blog and a Q&A on the plan

No real info or details will be available until March 4th, when the plan rolls out

Originally posted by Erasurehead
Is anyone responsible for their own actions anymore? How can you say these people are victims of a mortgage scam?

This is about accountability.

Originally posted by Erasurehead
Stop blaming everyone else. It is their fault that they are in the position to lose their homes. They took out loans that they could not afford, they agreed to terms they could not meet and did it any way. It is simple math really. If you only bring home 40K per year and purchase a 500K home with a $2500 per month mortgage payment chances are that you will not be able to make the payments since 75% of your income is going to your mortgage. Leaving only 25% for the rest of you living expenses.

In the grand scheme of things who has more accountability?
Homeowners or banks?
Let me rephrease that
Who has more accountability, people who's home became foreclosed and hurt themselves?
Or banks, who gave fraud loans and even encouraged fraudulent declarations which then caused foreclosures and a massive economic crisis like never seen before?

So in the big picture, who should have the most accountability?
People got their home foreclosed while banks got bailed out and the execs are enjoying spas and resorts.

Many people trusts their banks, blame their overtrusting characters not their irresponsibility.
Sure some are irresponsible, but some are also old and come from a different time where banks weren't so.... whatever word you want to use.
Bankers told them, sure sure go ahead, write that you make 100k all will be okay we'll take care of it.

reply to post by ModernAcademia

these foreclosed-home people aren't irresponsible, they are victims of a mortgage SCAM!

REALLY? All the people? Because I would bet that every legit story that is told (income provider gets laid off, for example), a story of irresponsible citizens (living beyond their means) or those who are scamming the market (easy way out of responsibility - just don't pay and get foreclosed on) can be told.

I have read stories here and other places of people seeing this "crisis" as their way out of their mortgage - not because they were forced, but because they could. There ARE irresponsible people out there. There ARE people who will take advantage of this situation.

For example:

consumerist.com...

ABCNews says that more and more people who are facing foreclosure are just buying cheaper homes and then just walking away from their original mortgage. It only works for people who can afford the down payment on a new home and carry both mortgages until they're in the new home, but for some people whose payments are about to balloon, it's the most attractive option out there right now.

banking.about.com...
More Walk Away From Mortgage Troubles

.....In a few years you'll be able to buy a home again. Furthermore, you won't ding up your credit by missing multiple credit card payments, defaulting on your auto loan, and declaring bankruptcy. Some walk away from mortgages as soon as they see trouble just to get the clock ticking -- the sooner your start the sooner your credit will improve.

online.wsj.com...

"The apparent willingness of borrowers to 'walk away' from mortgage debt," the analysts noted, "has contributed to extraordinary high levels of early default" on loans issued during the 18 months before the mortgage bubble burst. It expects losses to reach 21% of initial loan balances for subprime mortgages issued in 2006 and 26% for those issued in early 2007.

Such behavior, where not precipitated by willful fraud, shows that American homebuyers supposedly duped by their lenders aren't so dumb. They're perfectly capable of acting rationally without political interference.

While mortgage fraud has abounded in recent years, voluntary foreclosures are not by themselves evidence of a newfound irresponsibility on Americans' part. To be sure, until recently, mass-scale voluntary foreclosures were unthinkable. But markets have changed, and people are changing their behavior in response.

So, since there are citizens out there that are just as crooked as the politicians getting voted in, we should just put a band aid over the entire situation and keep bailing them out - keep being a cruch that allows their behavior to continue?

I think this help should be on a case by case basis and the people getting the help must show absolute proof that they are in the situation that they are in, not by their irresponsibly or their choice - period!




[edit on 2/18/2009 by greeneyedleo]

]Originally posted by ModernAcademia
Sure some are irresponsible, but some are also old and come from a different time where banks weren't so.... whatever word you want to use. Bankers told them, sure sure go ahead, write that you make 100k all will be okay we'll take care of it.

Bankers are blood suckers out to make a buck and nothing more. I am certainly not defending their predatory practices. That being said if someone tells you to overstate your income to get into a house you can't afford and you agree to it than it is your own fault when you default on the loan. Nobody is forced to lie. That is the choice of the individual that should know better.



[edit on 2/18/2009 by Erasurehead]

GIVE ME A BREAK all of you "Let'em suffer!" crowd. Read the fine print before you go off on you SOCIALISM panty raids.

The plan has three basic components. One would help homeowners who continue to make loan payments on time, but are paying high interest rates and would otherwise not be able to refinance because they do not have enough equity or their houses are worth less than they borrowed. A second would assist people who are at risk of foreclosure by providing incentives to lenders to alter the terms of loans to make them substantially more affordable to struggling homeowners. The third would try to assure there is plenty of credit available for mortgages by giving $200 billion of additional financial backing to Fannie Mae and Freddie Mac, the two government-controlled mortgage finance companies.

“It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell,” he said, adding, “And it will not reward folks who bought homes they knew from the beginning they would never be able to afford.”

Source

Home are being lost for a lot of other reasons than "people were stupid borrowers and are now asking for a hand out".

1. People bought a home and cannot refinance now because they are in negative equity.

2. People lost their job because stupid BANKERS messed up the economy and they lost their job.

3. People can make the payments but they want to walk away because they realize their investment will be worth NOTHING.

Give it a rest with this "stupid people asking for handouts". This is serious folks and if oyu lost your job and lost your home you might want some help too.

reply to post by TruthWithin


That's all the more reason for this to be done on a case by case basis and not just hand out money to anyone who says they are having trouble.

Originally posted by TruthWithin
Give it a rest with this "stupid people asking for handouts". This is serious folks and if oyu lost your job and lost your home you might want some help too.

If I lost my job and home then it is on me. Why should I expect the government to come to the rescue? I would go move into an apartment until I got back on my feet. I would not go groveling to the government to bail me out. Owning a home is not a right. You earn it and if you can't afford it then you rent. I want the government to stay the hell out of my life as much as possible.

Originally posted by ModernAcademia
reply to post by soldiermom

 

I don't want to be offensive, but perhaps I am just saying this because of your username and avatar look.

but you seem to be like the type of american patriot that only blames the people and never the govt. or whoever are in the govt.'s pockets.
these foreclosed-home people aren't irresponsible, they are victims of a mortgage SCAM!

If the people don't blame the source history will always repeat itself

I lay blame with the government when it's deserved. I blame them for many of the problems we are having today. The government is partially to blame for this mess but the biggest part goes to the people that knew they were getting in over their heads. Please don't try and tell me that every single person that got themselves into a mortgage they couldn't afford didn't know what they were doing. We have a saying that goes, "Don't let your eyes overload your pocketbook." That's exactly what I think the majority of them did.

If you don't understand the fine print, you always have the option of taking it and having someone you trust that has a little more knowledge than you do look it over. Too many excuses and not enough personal responsibility.

I just wanted to add for those of you that think we're being heartless, I'm all for helping people that have lost their jobs or any other legitimate reason one would have for potentially losing their home. Operative word being legitimate.

[edit on 2/19/2009 by soldiermom]

reply to post by redhatty

We are ALL on Section 8 Now LOL Seriously - Here's The White House Blog and a Q&A on the plan

Funny...i fail to see where people WHO HAVE NEVER OWNED A HOUSE get help?

Rent....save money...where the hell are these guidlines???

WTH...I DON'T HAVE A DAMN HOUSE WHY IN THE HELL DOES EVERYONE THINK THEY DESERVE ONE!!

I swear I'm about ready to buy a house to PURPOSELY default.

This is stupid BS redhatty.