Banks will get the biggest benefit from an Obama administration housing program designed to help unemployed homeowners escape foreclosure. (What a crock!)
Banks, not homeowners, will be helped by the White House’s $3 billion funding infusion — $2 billion from the Treasury Department and another $1 billion from the Housing and Urban Development Department — going to those states hit hardest by the housing market crash and unemployment.
Homeowners have a mortgage unless they are paid in full or paid cash to begin with. Banks own the mortgages and allow people to live in these houses in liu of payment. The real estate market crashes and so called homeowners are the ones that are in a bind? Yes, they are in a bind in that they can’t sell their homes for more money than they paid for it. The overall economy tanks and a lot of these homeowners are layed off/fired or the company they worked for just goes out of business. Without jobs, these homeowners can’t make the payments on the mortgages that the Bank owns. The prices of the peoples homes have fallen 50-60% in value so they are struggling to pay for a home thats only worth half of what they signed a mortgage to pay.
Sounds to me like the Banks are the ones with the problem! They’re not going to be receiving the billions of dollars per year in interest that they thought they would get back about 5 or 6 years ago. What are Banks going to do if everyone that is underwater tells them they are done paying for the governments mistake. No more payments – You own it Mr. Banker!
Our government says they can’t afford to deport 12 million illegal aliens! Do you think that if the Banks wanted to foreclose on and kick 12 million Americans out of their homes that this could or would be done? I just can’t picture our Armed Forces rolling through American neighborhoods evicting and kicking our citizens to the curb.
There has been a huge homeless problem in America for decades and I doubt the sitting politicians would allow the banks to foreclose on America. Well actually, I take that back, I just doubt they would send the military to do the evictions.
Let’s face it – Most people blame the Democrats for the real estate bust and the broken economy and a lot claim it was the Republicans. The fact it is that it is still our elected officials/lawmakers or whatever you want to call them that screwed the pooch on this one. The citizens that elected these people are the ones left holding the bag. These elected officials are the ones that enticed or ordered banks to allow: anyone and everyone that wanted to buy a home, whether qualified or not, to be given a mortgage. Everyone in a position to take advantage of this opportunity jumped in with both feet. Had mortgage companies of stayed with the 25% rule or gone off of actual income and work experience the problem would not be near as big. Instead of doing it the old fashioned way, they took up the “stated income” stance and quit prosecuting people for fraudulently applying for a mortgage. There may be a homeowner somewhere in America doing time for mortgage fraud, but I have never read about it or heard of it. Mortgage Brokers have not been hauled off to the hoosegow either, unless they were the ones that caused all the commotion after the bust.
American citizens had the real estate carrot dangled in front of them and they jumped. Why not? Most of us have watched our parents and grandparents make enough to retire from real estate investments. Ever hear of someone selling their home in New York and moving to the beaches of Florida? The American Dream was put “On Sale”! It was a cheap copy, and it broke! There is more than a “preponderance of doubt” that this was a faulty product offered by Banks, spurred on by the United States government. The government controls the Federal Reserve (Central Bank) which dictates how banks do business if they want guaranteed loans. (who doesn’t) A lot of smaller banks did not participate in this “land grab” and therefore are not part of the problem. However, large banking institutions knew in advance of the forthcoming problems and hedged their bets by betting the very mortgages that they were selling would fail!
Its time the American people and its elected leaders fight back. These banks are going to have to accept that one day they will have to lower the inflated values of the mortgages they hold. Refinance these homes to current market value and realize a interest profit from what is real. Their bubble burst too! Why should they come out of this unscathed? The citizens of this country are fed up with bailouts from the government. Now the Obama administration sneaks the bailouts over on us by renaming them. The just passed bailout for the “nations school teachers, police and firemen” was a Union Bailout and we all know it! Now the nations leaders are coming to our rescue again claiming to help homeowners when in reality they are merely bailing out the banks one more time.
Nevada, Arizona and Florida posted the worst foreclosure rates in July, with Nevada reporting the nation’s highest foreclosure rate for the 43rd straight month.
Five states accounted for more than 50 percent of national total — California, Florida, Illinois, Michigan and Arizona.
Four of those states will get part of $3 billion from the Treasury and Housing and Urban Development Department to help unemployed homeowners stave off foreclosure. At $476 million, California (Reelect Nancy Pelosi fund) gets the largest share while Florida will receive about $239 million, Illinois (Obama’s homies) gets $166 million, Michigan $129 million and Nevada is set to receive $34 million under the program. (Atta Boy Harry-way to stick in their for your people)
November can’t get here fast enough!