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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Bindare_Dundat on March 26, 2010, 09:42:24 PM
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http://www.washingtonpost.com/wp-dyn...032502426.html
By Renae Merle and dina elboghdady
Thursday, March 25, 2010; 7:14 PM
The Obama administration plans to overhaul how it's tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.
Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower's income, which would typically be their unemployment insurance, for up to six months. In some cases, administration officials said, a lender could allow a borrower to make no payments at all.
The new push, which the White House is scheduled to announce Friday, takes direct aim at the major cause of the current wave of foreclosures: the spike in unemployment. While the initial mortgage crisis that erupted three years ago resulted from millions of risky home loans that went bad, more recent defaults reflect the country's economic downturn and the inability of jobless borrowers to keep paying.
The administration's newest push also seek to more aggressively help borrowers who owe more on their mortgages than their properties are worth, by encouraging lenders to cut the loan balances of millions of these distressed homeowners and possibly refinance into loans backed by the Federal Housing Administration. The problem of so-called "underwater" borrowers has bedeviled earlier administration efforts to address the mortgage crisis as home prices plunged.
For the first time, the government will offer financial incentives to lenders that cut the principal these homeowners owe on primary mortgages
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Of all the houses that have gone trough reconciliation, mortgage adjustments and government real estate fixes in the past 2+ years, 50% went back into default, within one year
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Of all the houses that have gone trough reconciliation, mortgage adjustments and government real estate fixes in the past 2+ years, 50% went back into default, within one year
this is a big problem that is not really fixable (IMO) by the govt
the banks will titrate their reo inventory onto the market at their own pace and we'll see what happens
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this is a big problem that is not really fixable (IMO) by the govt
When you hear about billion dollar government programs that involve tearing down empty homes to increase/maintain the value of the surrounding houses, you know you're fugged.
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the banks will not lose money on this, the people that work and have juobs will be forced to pick up the slack, just another way to resitribute wealth