The hand outs continue

[mrsleeve]

Seems that if you have a govt backed loan on your house and you are unemployed dont worry about making that pesky mortgage payment, nahhh dont worry about that whole responsibility and paying your bills thing.

New government plans give unemployed one-year break on home loans

--Administration hopes more of mortgage industry will follow

--Despite government control, Fannie, Freddie don't participate

(Updates with comments from conference call and additional details in the third through seventh paragraphs.)

WASHINGTON -(Dow Jones)- The Obama administration said Thursday that it would alter its housing programs in an effort to assist the unemployed by giving them a 12-month break on mortgage payments.

The changes, which could impact tens of thousands of borrowers, apply to loans backed by the Federal Housing Administration, a federal agency that guarantees home loans, and a separate loan-assistance program run by the Treasury Department.

The programs do not mean the amount owed is forgiven. Instead, borrowers are required to pay back any past-due balance after the forbearance period expires, although Obama administration officials noted that borrowers will be evaluated for further loan-assistance programs if they are unable to make their payments once the 12 months run out.

"These adjustments will provide more opportunities for unemployed borrowers to stay in their home while they look for a job," Housing and Urban Development Secretary Shaun Donovan told reporters. "We hope it will also push the mortgage industry to extend more robust assistance" to unemployed homeowners, he said, noting that President Barack Obama "has been pushing us to do more," to help the housing market stabilize.

Previously, the FHA's forbearance program had given homeowners a break of at least four months. It has assisted about 17,000 homeowners per year. The Treasury's Making Home Affordable Program offers a three-month break and has assisted about 10,000 homeowners since it was launched in August.

The program will not, however, apply to loans backed by Fannie Mae (FNMA) and Freddie Mac (FMCC), the government-controlled mortgage giants. Fannie and Freddie have similar, but shorter, forbearance programs for the unemployed.

Even though taxpayers have sunk $138 billion into Fannie Mae and Freddie Mac to keep them afloat since they were placed under federal control in September 2008, Obama administration officials have not been able to convince the companies' independent regulator to participate in some of the administration's housing initiatives.

The troubled U.S. housing market has been one of the weakest parts of the economy, and is a key reason why the two-year old economic recovery has been weak. On Wednesday, Obama acknowledged that his administration's plan to tackle the foreclosure crisis has struggled since it was launched in spring 2009.

"We've had to revamp our housing program several times to try to help people stay in their homes and try to start lifting home values up," he said. "But of all the things we've done, that's probably been the area that's been most stubborn."

The administration's flagship program, known as the Home Affordable Modification Program, has fallen far short of initial expectations. It has helped about 633,500 U.S. homeowners avoid losing their homes through permanent loan modifications, compared with an initial goal of helping three million to four million borrowers. Fewer than 5,000 of those homeowners have received a permanent reduction in the principal balance they owe on their mortgage.

"We're going back to the drawing board, talking to banks, [trying] to put some pressure on them to work with people who have mortgages to see if we can make further adjustments, modify loans more quickly and also see if there may be circumstances where reducing principal is appropriate," Obama said.

http://www.foxbusiness.com/industries/2011/07/07/white-house-gives-jobless-one-year-mortgage-break/

This shit just makes a mockery of those that pack their shit, leave the family and go where every they need to make a living!!!! To those that sell everything, and work at 3 part time jobs to keep the bills paid!!! To those that do what they need to make their obligations.

This shit makes me so mad. This is the same shit Stephen Lerner, former SEIU exec, has said was the way to bring down the evil banks, stop paying your mortgages. Now our POTUS has a long history with the SEIU...........

[joshh]

The programs do not mean the amount owed is forgiven. Instead, borrowers are required to pay back any past-due balance after the forbearance period expires, although Obama administration officials noted that borrowers will be evaluated for further loan-assistance programs if they are unable to make their payments once the 12 months run out.

If I'm reading that right, it wont help very many people. Most people in trouble need a reworked Mortgage agreement because they can't keep up with the monthly payment. If you're supposed to pay back (so you're even at the end of the year) what you missed during that year, it's just going to be another failure. I see it as pretty pointless if that's the case.

[Raxe]

This shit just makes a mockery of those that pack their shit, leave the family and go where every they need to make a living!!!! To those that sell everything, and work at 3 part time jobs to keep the bills paid!!! To those that do what they need to make their obligations.

Haha okay what do you suggest as an alternative, kick families to the street and leave them homeless? Introduce children to gangs and women to prostitution while the men take off to northern Canada for work? That'll totally fix everyones problems!

I get that you're upset whenever tax dollars are spent on anything that doesn't directly benefit you personally, but you really should try to stop and think for a minute before losing your shit every time Obama moves a finger.

[mrsleeve]

^
WTF man. Shit is hard right now I get that. But its not my problem nor is the problem of our govt that people entered into a contract that they either could not really afford in the 1st place, or are ill prepared for the circumstance of life because they entered into such a contract. (you know some kind of savings in the bank). This goes both ways for lender and borrower a like, but thanks to the govt forcing the lenders to lend in this manner is a matter for a different thread.

No I am not talking about kicking people out in the streets, you know when you stop making your payments, you have at least 180 days till you have to be out, in many cases pushing 9 months before the bank gives you the shoe. That gives one plenty of time to find alternate housing. Or to maybe relocate to where you can get work. Or maybe pack your shit and go somewhere that you can find work to meet your obligations. its called honor and responsibility, All this is doing is prolonging the inevitable, and propping up the housing markets is just prolonging the pain, just like the policy's of FDR in the 30's.

Northern Canada yeah thats one option but your govt frowns on us coming up in force to work, (I know I have tired to hire out in Canada and was told I cant thanks to your federal govts restrictions) But there are plenty of places in this country where a man with a willingness to work can earn a good honest living. It may be hard work and not what you went to school to do, but there is work to be had all you have to do is be willing to go and take it.

I get pissed at any and all waste of tax money, and paying for stupid peoples mistakes (both private and corporate) is the ultimate slap in the face to all of us.

I didnt buy a home when the money was easy and I could have borrowed 385k on 43k dollars a year (yes thats what I was approved at in 2007) I knew I could not really afford it. After it all came down I had some long periods off where I racked up some serious debts. Well after working my ass off away from home for months at time I am free of all those debts and stacking money away to buy a home with no mortgage at all. I am doing what is necessary to make a living and provide for my family and even help others out that need the help. There is no reason at all that anyone else out there cant do the same.

My fil has been bouncing from dealership to dealership all over the country for the last 6 years to make his mortgage payments, he has not set foot in that house in over 5 years, and it will not sell the market is so bad where its located not to mention has not seen his family but a week or so every 6 months. Its shit like the article that just marginalizes honor and sacrifices of people that honor their debts and do what ever they need to meet their obligations. These kinda of actions are not those of moral society where we teach our children and society at large that dont worry there will be no real consequences for making stupid decisions and not being responsible for your own well being, the govt will take care of you.


Josh
Yes you are correct its going to be about as successful as the modification program has been.

its just the principal of it all, and the gal that this administration has to be pulling shit like this, that is just so infuriating

[joshh]

Haha okay what do you suggest as an alternative, kick families to the street and leave them homeless? Introduce children to gangs and women to prostitution while the men take off to northern Canada for work? That'll totally fix everyones problems!

I get that you're upset whenever tax dollars are spent on anything that doesn't directly benefit you personally, but you really should try to stop and think for a minute before losing your shit every time Obama moves a finger.

Because there's no other option for families...it's either the street or their poor little home that they agreed to pay XXX a month for. Oh wait there are these things called apartments. Do you actually believe the street is the only option?

Josh
Yes you are correct its going to be about as successful as the modification program has been.

its just the principal of it all, and the gal that this administration has to be pulling shit like this, that is just so infuriating

You do know it's a grab for more votes right. It's just another bullshit item he can say he did to help people during hard times. If these people have to pay it all back at the end of the year it's just another failure waiting to happen.

[pureaudio]

So it sounds like people are just getting an extra year to stay in the house before the inevitable foreclosure happens. How many people are really going to have all those back payments saved up before that year is up?

Just like loan modification, this will fail miserably.

[Raxe]

Because there's no other option for families...it's either the street or their poor little home that they agreed to pay XXX a month for. Oh wait there are these things called apartments. Do you actually believe the street is the only option?

The keyword here being unemployed. I don't know about you, but I don't know many unemployed people in the financial position to up and rent an apartment. This program is intended to give someone who lost their job a better opportunity at finding another one.

[joshh]

The keyword here being unemployed. I don't know about you, but I don't know many unemployed people in the financial position to up and rent an apartment. This program is intended to give someone who lost their job a better opportunity at finding another one.

You're talking to a guy that lost a house and moved into an apartment....

And let's say you find a job after 6 months....are they going to be able to come up with 6 month back mortgage payments? No...it's fucking pointless.

[Raxe]

You're talking to a guy that lost a house and moved into an apartment....

And let's say you find a job after 6 months....are they going to be able to come up with 6 month back mortgage payments? No...it's fucking pointless.

Did you lose your job at the same time? It's not the same if you still have a steady income and savings to work with.

It's not entirely clear in the article, but it doesn't specify that homeowners are required to pay back the entire lump-sum amount owing after the 12 month grace period expires. I would assume payments would be simply extended until the amount owing is zero which makes perfect sense.

[joshh]

Did you lose your job at the same time? It's not the same if you still have a steady income and savings to work with.

It's not entirely clear in the article, but it doesn't specify that homeowners are required to pay back the entire lump-sum amount owing after the 12 month grace period expires. I would assume payments would be simply extended until the amount owing is zero which makes perfect sense.

I got sick. But was not collecting a dime from the Government. I'll leave it at that.


Agreed it's not clear for me either. But if it's a free years mortgage I have to absolutely agree with Mrsleeve. Wiping people's responsibilities clean is wrong to so many other people. That's just as bad in a different way though.

[mrsleeve]

The keyword here being unemployed. I don't know about you, but I don't know many unemployed people in the financial position to up and rent an apartment. This program is intended to give someone who lost their job a better opportunity at finding another one.

if your not making a mortgage payment, you are getting unemployment, you should have the money in the bank to find an apartment. Or sell something or lots of shit to come up with the money.

[Raxe]

I don't like paying for other peoples mistakes either, but I try to remind myself I'm not the only one in the country paying taxes. There are a lot of hard working individuals who paid their fair share and were laid off in the last couple years, I don't think it's fair to tell them they don't deserve anything when they've been paying into it just as much as you have simply because you don't need it right now. The key thing to remember is you are already in a better situation than anyone described above, don't be so cold and unsympathetic to those less fortunate than you. Someday your luck might run out too.

As for the small number of people who cheat and abuse the system, I have no sympathy for them. However I also don't see how this program would support them for any significant period of time.

[joshh]

if your not making a mortgage payment, you are getting unemployment, you should have the money in the bank to find an apartment. Or sell something or lots of shit to come up with the money.

Exactly, we sold the Acura, and most of my cabinet equipment. If sacrifices have to be made then do it. My wife was employed as well.
People don't want a separation from their plasma TVs.

[mrsleeve]

I don't like paying for other peoples mistakes either, but I try to remind myself I'm not the only one in the country paying taxes. There are a lot of hard working individuals who paid their fair share and were laid off in the last couple years, I don't think it's fair to tell them they don't deserve anything when they've been paying into it just as much as you have simply because you don't need it right now. The key thing to remember is you are already in a better situation than anyone described above, don't be so cold and unsympathetic to those less fortunate than you. Someday your luck might run out too.

As for the small number of people who cheat and abuse the system, I have no sympathy for them. However I also don't see how this program would support them for any significant period of time.

They are getting what they paid into the system they are getting their Unemployment insurance payments.

I am in a better situation because I work my ass off and we are making some very hard sacrifices to be in the position we are in. There is no substitute for hard work and sacrifice to get where you want in life, sometimes it takes the same to just scrape by.

Are you implying that because I am in the situation I am lucky enough to be in, the govt should force me to pay for others fuck ups??? You have to remember the lions share of those people are in that situation by their own hand, I have no sympathy for that.

[Raxe]

Are you implying that because I am in the situation I am lucky enough to be in, the govt should force me to pay for others fuck ups??? You have to remember the lions share of those people are in that situation by their own hand, I have no sympathy for that.

I'm saying everyone has to pay for it, but not everyone is unfortunate enough to need it. I'm sure you know insurance coverage works on the same principle. Someday things could turn around real quick and if they do you'll be glad someone is there to help you like you helped them. It only takes a split second to seriously injure someone and put them out of work for months.

Good for you that you work so hard, I'm sure it leads to quite a comfortable lifestyle for you and your lady. That's nothing to complain about.


There's a very easy litmus test for this: imagine YOURSELF, truthfully, in a situation described in the article. You're recently unemployed and still have mortgage payments to make. Would you honestly prefer to:

a) sell everything, default on your house and move into an apartment?

or b) accept the one year grace period, keeping your house and possessions until you find a new job.

Looking at situations in first person (none of this "us and them" crap) can really expand your point of view and understanding. Try it out, your whole outlook on life will change.