Foreclosures - Should the government intervene?

President Obama's foreclosure prevention plan, to be announced Wednesday in Phoenix, will help some struggling homeowners by providing them with direct government subsidies of interest payments, among a menu of measures, financial industry sources said Tuesday.

"The interest rate buydown program [is] emerging as a central component of the administration's battle plan to stabilize the housing market," said former HUD official Howard Glaser, of the Glaser Group in Washington D.C.

He said the government could require mortgage lenders and private mortgage investors to match any federal mortgage interest subsidies. But the matches could be less costly to them than foreclosures, sources said.

www.foxnews.com...

Barack Obama today turned his attention to the origin of the economic collapse in the US and around the world, America's unstable and overblown housing market, unveiling a plan to help millions of struggling homeowners.

Obama described the collapse of the housing market as "a crisis unlike any we've ever known" and proposed throwing hundreds of billions into a pot to help an estimated 9 million homeowners. The cost to the federal government would be about $275bn (£193bn) but could rise.

His long-awaited solution to the collapse in the housing market is to offer incentives and subsidies to mortgage companies to ease up on homeowners.

www.guardian.co.uk...


From an ideological point of view

Is this a good move?

Or should these folks be fully responsible for their predicament?

reply to post by mental modulator


Yes, the government should do all it can considering the housing industry ignited this economic downfall.

Although it seems there is much politicization brewing...
nothing new there..

they have already intervened with trillions of tax payer dollars...it hasnt done a thing to help the economy, so why continue to throw money away...at best this like putting a bandaid on an axe wound

isn't this really kinda the same topic even though it's under news?

www.abovetopsecret.com...

reply to post by invisibleman11


It haven't work because the money was "given" to the corrupted banking institutions to keep screwing the American people, while maintaining their lavish lifestyle.

Meanwhile they don't give a crap about how many families find themselves homeless and destitute.

And on top of that more and more areas of housing are starting to look like ghost towns and that also is lost revenue in the states with the problem.

Empty homes means not property taxes generated for the states to support service, schools, police, fire department etc.

if they give people anything it will be miniscule or just a loan...the banks want desperatly to keep people in debt and obama is going to help them do this

Originally posted by ~Lucidity
isn't this really kinda the same topic even though it's under news?

www.abovetopsecret.com...

YES..

However, I want the focus of this thread to be driven by ideology - what people believe...

Specifically

Originally posted by invisibleman11
if they give people anything it will be miniscule or just a loan...the banks want desperatly to keep people in debt and obama is going to help them do this

SO you think the purpose is to make thing worse?

I understand that you equate HILTER and OBAMA - but how do you come up with that point of view?

Or what do you suggest?

reply to post by invisibleman11


I agree in one part, the so call stimulus is nothing more than financing an over inflated deficit, the bill itself is nothing different from what the government yearly budget looks, like but this time is trillions.

It doesn't show how they government will ensure permanent jobs to stop the raising unemployment.

It doesn't include the fact that banks are going to ask for more money and that the car industry need more than just 3billion more to keep afloat.

That will be pushed probably on another bail out bill soon to be added to the overinflated deficit.

Now if people are allowed to stay in their homes due to losing jobs not because of trying to go around the "system" I am all for that.

But we know that with all the cuts on regulations we are going to see that is impossible to track everybody.

The American government is running the biggest ponzi scheme at the expenses of tax payer and people think that everything is peachy

The only way I see they should intervene is if they offer the same deal to every American who has a mortgage. Just picking a select few is not the best option IMO.

I feel for the people who are losing their homes, but a lot of these people got loans they couldn't afford and didn't bother to read the contracts they signed.

Why should they be rewarded for their irresponsibility??

Originally posted by jam321
The only way I see they should intervene is if they offer the same deal to every American who has a mortgage. Just picking a select few is not the best option IMO.

So you think reseting all mortgages is the only fair way to approach this?

I suppose I am all for fairness - I will try to sit on this idea... Care to offer your approach on the whole thing?

Originally posted by skeptic1
I feel for the people who are losing their homes, but a lot of these people got loans they couldn't afford and didn't bother to read the contracts they signed.

Why should they be rewarded for their irresponsibility??

Good point...

OR you could phrase it - why should the people be punished for irresposible lending?

OR both

However I know that at the mortgage company I worked at - it was common place practice to weight the LOAN APPROVAL process in order to make a sale...

DO you think having 7 million houses sitting abandoned is beneficial?

Even for the market?

Regardless of the notion of responsibilty?

Originally posted by skeptic1
I feel for the people who are losing their homes, but a lot of these people got loans they couldn't afford and didn't bother to read the contracts they signed.

Why should they be rewarded for their irresponsibility??

Then why is our tax money has gone with not problem to finance the failures of the banking system when they were profiting from bad loans.

Look what the TARP money has done to fix the mortgage problem, no a darn thing.

You know why, because banks don't give a crap about the tax payer and neither the people that are losing their homes.

At the end the housing market will reset and they will have all those toxic paper to sell all over again and keep making profit from their own created ponzi scheme with the blessings of the Federal government, all at the expenses of tax payer, until another mortgage bubble burst again.

reply to post by mental modulator


This is a plan Infolurker came up with and I think it would be beneficial and could possibly work. look at it and tell me if you see any backfire. I could settle on something like Plan B on this link.


www.abovetopsecret.com...

Originally posted by jam321
reply to post by mental modulator

 

This is a plan Infolurker came up with and I think it would be beneficial and could possibly work. look at it and tell me if you see any backfire. I could settle on something like Plan B on this link.


www.abovetopsecret.com...

10 -4

thanks

Why should the irresponsible people and corporations be rewarded? I pay my bills on time, I work long hours every week and pay my due taxes. Yet the people who default on their contracts (for whatever reason) get the handouts.

I stated in a similar thread that people who have legitimate problems should be helped out. After thinking about it a bit, I have changed my opinion on this. And yes, I may lose my job before it's over, but I will not be banging on the White House door looking for a handout. I will do what I have to do to provide for my family.

Where does the government plan on getting the money to pay back the trillions of dollars of debt? Every time I read the news, there are less and less tax payers out there. I do not want anymore bailouts. Let the SHTF so we can start restructuring and get it over with already. I don't want my children or my children's children to have to pay 75% taxes their whole life to pay back my generations screw ups!

Originally posted by marg6043

Originally posted by skeptic1
I feel for the people who are losing their homes, but a lot of these people got loans they couldn't afford and didn't bother to read the contracts they signed.

Why should they be rewarded for their irresponsibility??

Then why is our tax money has gone with not problem to finance the failures of the banking system when they were profiting from bad loans.

Look what the TARP money has done to fix the mortgage problem, no a darn thing.

You know why, because banks don't give a crap about the tax payer and neither the people that are losing their homes.

At the end the housing market will reset and they will have all those toxic paper to sell all over again and keep making profit from their own created ponzi scheme with the blessings of the Federal government, all at the expenses of tax payer, until another mortgage bubble burst again.

ITs so true, almost funny...

I just think outside of the 'FEELING" aspects, what good does 10,000,000 houses running down do for the economy?

There are a number of reasons that people ended up with mortgages that they can't afford.

First, that were lots of people who never under any circumstances should have gotten a mortgage. They squeezed in with ridiculous teaser rates and no down payment. I don't believe that these people should be saved. The banks clearly made a mistake and should take the hit.

Second, investors who were trying to flip houses at the peak of the market. Ditto on "I don't believe that these people should be saved. The banks clearly made a mistake and should take the hit."

The third group of people are those that paid too much for their houses and are now upside down on their mortgage. If they are still working and trying to pay their mortgage, I think this is the only group that should be helped.

They should NOT intervene.

Are people to good to rent anymore? What happened to the days when you fell on hard times and family took you in to help you out. Is this easy? Hell no it's not. I've had to do it after my job was outsourced to Mexico, but I DID IT.

Either way, this money is going to the banks and it's TAXPAYER money. I am sick and tired of everyone refering to taxpayer money as government money. IT IS NOT THEIRS. IT IS OURS.

We are all going to take a hit. Everyone here should know that. We are only in the beginning stages of all of this. The more the goverment does, the more it is hurting us.