The Obama administration is trying to jump-start its sputtering plan to tackle the foreclosure crisis with an effort to assist up to 1.5 million homeowners who owe more on their properties than their homes are worth.
The Federal Housing Administration will allow lenders to give these "under water" borrowers refinanced loans if the lender agrees to forgive at least 10 percent of the original mortgage amount.
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He promised help before and yet many already lost their home waiting. If he wants to do the right thing waive the bankruptcy laws so people can get loans this would stimulate the economy but first the banks he bailed out need to start loaning again after all it is the tax payers money that they were given.
ReplyDeleteSince I've doen the right things all these years and have a ton of equity in my home, perhaps I should take out a loan for more than the equity and let Obama pay it off for me.
ReplyDeleteThis would set up way too much shady dealing. If a person owes $300,000 on a mortgage but their house only appraises for $250,000 the government is going to supposedly pay the difference. Well, then appraisers are going to deliberately decrease the values of all the homes they appraise. The entire real estate market will be artificially appraised (again) and we will be in a big mess all over again.
ReplyDeleteRob S