Foreclosure Mitigation Plan

[Prozium]

The Obama Administration on Wednesday released details of a $50 billion program that they believe will help up to 5 million "at risk" homeowners modify their mortgages. This program is seeking to help homeowners who took out loans owned or guaranteed by Fannie Mae or Freddie Mac to refinance through the two institutions. It also allows certain families to refinance at lower interest rates. The program also is launching a $75 billion homeowner stability initiative that the Obama Administration believes could help 3 million to 4 million homeowners.
http://www.marketwatch.com/News/Story/Story.aspx?guid={FC471D1A-4A21-4A01-91FA-72F9C2020978}

http://www.youtube.com/watch?v=drXMz3BnU0U

 

[amoeba]

if I had a nickel for every time

If I had a nickel for every time that a politician claimed they had a "solution" (they don't) for the foreclosure "crisis" (it isn't one), I'd be a millionaire by now.

Even if anyone believed that $75 B would have changed anything significantly they would have done it by now, and saved the other $700B for something else.

What a collossal joke. This is no crisis. These people cheated on their loan applications, claimed they had income that they didn't. No $75B is going to keep 3-4 million people in houses. Do the math; explain to me how an investment of $19,000 per household is going to restructure underwater loans, paid by bad-risk loan defaulters, who don't have enough income to pay it back, and don't want to keep the houses; not that they should be given any favors - but I'd just as soon give the $75 B to the people who ARE on time on their mortgages.

Kyle Bass on the CNBC special, House of Cards, has it right; there needs to be a Darwinian flush - all the bad has to go out. That means all the bad loans, and all the bad people who aren't paying them. Only when that happens will the economy begin to turn around.

Fortunately, the $75 B won't do anything significant and Obama knows it; and we'll be on to something else besides printing green paper and throwing it where-ever it will stick.