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New Mortgage Assistance Program Assures More Government Loans Guaranteed to Never Be Repaid

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posted on Jun, 22 2011 @ 10:51 PM
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There's a new mortgage assistance program that will feed interest money to the banks and is guaranteed to saddle American's with even more unpayable debt.

I read about this program being launched on Monday (6/20) and realized it would really help a couple of my friends out if they were able to qualify. I've since had the opportunity to REALLY think about the terms of this program and as a taxpayer, I'm really not happy about this. The way it is structured, it almost guarantees that the loan will never be repaid.

portal.hud.gov.../program_offices/housing/sfh/hcc/ehlp/how

In a nutshell, if you qualify and are selected (lottery style) you are eligible for up to $50K in mortgage assistance as follows:

They review your current income levels and reset your payment to 31% of your current income. They then bring you current and pay the difference between your original payment and your modified payment, up to the $50K or 24 months, whichever comes first.

The terms of repayment... if you continue to live in your home for 5 years and pay as agreed per the modification agreement, the principal is reduced by 20% each year leaving a balance of -0- for the homeowner.

Of course if the borrower defaults, again the balance that will be repaid is I'm sure -0-

Don't get me wrong, I'm all for helping the person in need but this is just insane. My biggest problem with this is that most of these people in trouble will have bought during the “bubble” years and their mortgages are still in their early years... when 2/3 of your payment (with a 30 year) is going to interest.

What I have come to realize is that the 31% the homeowner is paying is the only amount being applied to the principal on their loan and the difference, being provided by the taxpayer is going to the banks as interest.

Probably doesn't help that I'm reading The Creature from Jekyll Island (loaned to me by a banker no less) and I'm learning how the American taxpayer is the co-signer on everyone's debt... not only the outright government obligations but now 2 years worth of interest for upside down homeowners, a goodly percentage of the corporations in this country and the debt of foreign nations as well.

I will say, this has got to be one of the best kick the can programs to date.




posted on Jun, 23 2011 @ 12:09 AM
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NOTE TO AMERICANS: TRY SAVING AND THEN SPENDING DUMBASSES!!
not so easy is it?
i have always been poor so i know what it is like not to get a car loan cuz you don't have ''32 hours a week at work''
or ''you don't have any credit''
i know from personal experience that the system was design to keep you enslaved to debt, imprisonment or slavery.EXAMPLE:did you know that 90 percent of criminals go back to jail because of probation or parole ''violations'' ....these violations can range from serious and within the confines of the law to completely unneccesary and downright ludicrous such as night curfews or banning the consumption of alcohol which is entirely legal or even talking to someone.in effect these are''laws within laws'' and are baseless ...only designed to keep the offender reoffending.if the system was not designed this way there would be very few probation officers ,bounty hunters ,bail bondsmen judges ,lawyers.etc. and with that demonstration you can see why the criminal system grows more everyday.strict sentences are not handed down for A REASON!
and we have all heard the horror stories of debt and having crappy jobs.my own grandmother has worked at the newspaper plant fro 32 years and has gotten 2 raises of 15 cents!!!! if that is not enslavement and taking advantage of ''women's lib'' then i don't know what is.
RULE 1 ...............PAY FOR EVERYTHING WITH CASH YOU WILL GET A BETTER DEAL AND IT WILL BE BOUGHT AND PAID FOR THAT MEANS YOU OWN IT !!IT CAN BE DONE I HAVE DONE IT
QUIT ALLOWING THE FAST FOOD INDUSTRY AND THE MAGAzine companies and the soda companies and
starbucks and everyother EYE GRABBER TAKE YOUR HARD EARNED DOLLARS!



posted on Jun, 23 2011 @ 12:34 AM
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by feed interest to banks you mean fanny and freddy who guarantee 95% of all us mortgages.

between fannny and freedy they hold over 2 trillion in assets andd the government wants more.

the legacy of the new deal and the root cause of the financial crisis we have heard so much about.

the problems werent fixed wall street was blamed



 
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