Damn Obama!!!!!!!! Look what he is planning next!!!!!!

[vols fan]

You are right. But very few of them own a house...

The article above was about homeowners so that is what I think me and BW are refering to.

[vols fan]

People are underwater due to their house is losing value. You cannot refinance at a lower rate if your house is losing value.

1.People are underwater cause they bought a house they couldnt afford.

2.People are trying to refinance cause they bought a house they couldn't afford.

Plain and simple. And I blame the banks and loan officers just as much as I do the people who purchased the home.

[buddyluv1968]

I hate the free handouts, I might be mostly liberal, and even not all that conservative, but the free handouts are bullshit. I know way too many people, that just sit around on their asses and say they can't get a job and it's because they refuse to work for anything under 6 figs.

You are right. But very few of them own a house...

[buddyluv1968]

Would you agree that the borrowers are underwater because the live way larger than there income?

And now WE should help them out? When I stay at home instead of going out to eat because I'm on a budget then I don't feel sorry for these people who eat out every night, have all the nice things BUT now need help cause they can't afford it.They CAN afford the loan but they want to live like kings instead of sitting at home and eating tacos or hot dogs.

People are underwater due to their house is losing value. You cannot refinance at a lower rate if your house is losing value. With people knowing that. They are simply walking away and starting over. With that happening, that will affect your value on your house. Only people making out right now are people with cash to buy these houses.(i.e. OneWest Bank)

[BigWeiner]

YOU DAMN RIGHT BW Hell, they make people work for community service so hell if you take money from the government then show up every Saturday to pick up trash. They would get jobs in no time.

I hate the free handouts, I might be mostly liberal, and even not all that conservative, but the free handouts are bullshit. I know way too many people, that just sit around on their asses and say they can't get a job and it's because they refuse to work for anything under 6 figs.

[vols fan]

I say make these mo fo's work. If the gov't is just gonna give these guys money, make them work. Even if they just make up jobs, anything's better than nothing. Can you imagine if you told someone, "since we're giving you free money, you need to clean High School toilets" they would say, "I'm gonna go see if McDonalds is hiring"

Honest to God BW.One of the best ideas I have heard of in along time. They couldn't find jobs fast enough

[vols fan]

I say make these mo fo's work. If the gov't is just gonna give these guys money, make them work. Even if they just make up jobs, anything's better than nothing. Can you imagine if you told someone, "since we're giving you free money, you need to clean High School toilets" they would say, "I'm gonna go see if McDonalds is hiring"

YOU DAMN RIGHT BW Hell, they make people work for community service so hell if you take money from the government then show up every Saturday to pick up trash. They would get jobs in no time.

[vols fan]

Let me know when this one is available, I'm getting screwed over here

Third, the administration is increasingly turning to the Federal Housing Administration to help underwater borrowers who are still keeping up their payments. The aim is to help these borrowers refinance into a more affordable loan.

Would you agree that the borrowers are underwater because the live way larger than there income?

And now WE should help them out? When I stay at home instead of going out to eat because I'm on a budget then I don't feel sorry for these people who eat out every night, have all the nice things BUT now need help cause they can't afford it.They CAN afford the loan but they want to live like kings instead of sitting at home and eating tacos or hot dogs.

[BigWeiner]

People out of a job and behind on bills will make more money than I do in the next 6 months

I say make these mo fo's work. If the gov't is just gonna give these guys money, make them work. Even if they just make up jobs, anything's better than nothing. Can you imagine if you told someone, "since we're giving you free money, you need to clean High School toilets" they would say, "I'm gonna go see if McDonalds is hiring"

[BigWeiner]

Let me know when this one is available, I'm getting screwed over here

Third, the administration is increasingly turning to the Federal Housing Administration to help underwater borrowers who are still keeping up their payments. The aim is to help these borrowers refinance into a more affordable loan.

[vols fan]

People out of a job and behind on bills will make more money than I do in the next 6 months

[buddyluv1968]

Obama administration to order lenders to cut mortgage payments for jobless

By Renae Merle and Dina Elboghdady
Washington Post Staff Writers
Thursday, March 25, 2010; 6:01 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 seeks 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.

The new initiatives are expected to take effect over the next half year and will be funded out of money remaining in the $700 billion bailout program for the financial sector, administration officials said. They said no new taxpayer funds would be needed.

The announcement comes as the administration faces increasing pressure from lawmakers and housing advocates to overhaul its foreclosure prevention efforts. So far, fewer than 200,000 borrowers have received permanent loan modifications under its $75 billion marquee program, known as Making Home Affordable. And the Inspector General for the Troubled Assets Relief Program has raised concerns that many borrowers may redefault even after receiving relief under the program.

In the meantime, there is a growing backlog of distressed borrowers awaiting help from their lender and threatening to hamper efforts to stabilize the housing market. The "program will not be a long-term success if large amounts of borrowers simply redefault and end up facing foreclosure anyway," the inspector general said in a report released earlier this week.

In addition to mortgage relief for unemployed borrowers, the program features several other key elements, including several steps to address the growing population of borrowers who owe significantly more than their home is worth. Underwater borrowers now make up about a quarter of all households, according to First American CoreLogic. Economists consider these homeowners at higher risk of default because they cannot sell or refinance their home when they run into financial troubles.

For one, the government will for the first time provide financial incentives to lenders that cut the balance of a borrower's mortgage. Banks and other lenders will be asked to reduce the principal owed on a loan if it this amount is 15 percent more than their home is worth. The reduced amount would be set aside and forgiven by the lender over three years as long as the homeowner remains current on the loan.

Until recently, administration officials had been reluctant to encourage lenders to cut homeowner's principal balance, worrying this would encourage borrowers to become delinquent. But as federal regulators have struggled to make an impact on the foreclosure crisis, those qualms have weakened.

Second, government will double the amount it pays to lenders that help modify second mortgages, such as piggyback mortgages, which enabled home buyers to put little or no money down, home equity lines of credits. These second mortgages are an added burden on struggling homeowners, especially when their total debt, as a result, is greater than their home value.

Federal officials have estimated that about half of all troubled homeowners have a second mortgage and last year launched a program to encourage lenders to restructure them, but has struggled to get the effort off the ground.

Third, the administration is increasingly turning to the Federal Housing Administration to help underwater borrowers who are still keeping up their payments. The aim is to help these borrowers refinance into a more affordable loan.