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Old 12-18-2008, 01:05 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,171,725 times
Reputation: 6374

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300 Billion to save 400,000 homes? Rings bells -N- stuff?

H.R. 3221 - Summary: Housing and Economic Recovery Act of 2008 (GovTrack.us)

-Establishes the Home Ownership Preservation Entity Fund to fund the HOPE (Home Ownership Preservation Entity) for Homeowners Program, which will insure up to $300 billion for 30 year refinanced loans for distressed borrowers between October 1, 2008-September 30, 2011 (Sec. 1402).

washingtonpost.com

312 aplications since October. Woah, slow down there turbo.
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Old 12-18-2008, 07:05 AM
 
8,939 posts, read 7,900,625 times
Reputation: 7315
People don't want to "save" homes in which they'd be 30, 40, or 50 percent underwater. They know they'd be better off starting with a clean slate.
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Old 12-18-2008, 04:44 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,171,725 times
Reputation: 6374
Heh. The gist of the article was that A: People can't qualify without lt being a liar loan or B: the banks don't want to take the haircut. They'd have to declare their losses and would go insolvent. It's a program created by Congress to look like they werre doing something, while actually doing a heck of a lot of nothing.

"We have this great program we created."
"No one can use it!"
"Not our problem! Here, take this program."
"NO ONE QUALIFIES! THE BANK WON'T DECLARE LOSSES."
"Not our problem! Here, take this program. We made this program to help you!"

And on..and on...and on. It's like 2 deaf geese honking. Neither one can hear the other and they both are annoying the **** out of you.
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Old 12-18-2008, 08:14 PM
 
Location: Marietta, GA
7,861 posts, read 15,209,366 times
Reputation: 3576
Quote:
Originally Posted by lchoro View Post
People don't want to "save" homes in which they'd be 30, 40, or 50 percent underwater. They know they'd be better off starting with a clean slate.
So allowing a foreclosure, walking away, and ruining your credit is better than living in the house for a few years until the market improves? It's not a "clean slate". It's a damaged credit record . I don't understand that logic.
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Old 12-18-2008, 09:08 PM
 
Location: Great State of Texas
86,068 posts, read 74,781,320 times
Reputation: 27602
Quote:
Originally Posted by neil0311 View Post
So allowing a foreclosure, walking away, and ruining your credit is better than living in the house for a few years until the market improves? It's not a "clean slate". It's a damaged credit record . I don't understand that logic.
If they didn't have good credit to begin with then they are not losing anything really. The liar loans were based on just that..lies about what they made and could afford.
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Old 12-18-2008, 09:16 PM
 
Location: Marietta, GA
7,861 posts, read 15,209,366 times
Reputation: 3576
Quote:
Originally Posted by HappyTexan View Post
If they didn't have good credit to begin with then they are not losing anything really. The liar loans were based on just that..lies about what they made and could afford.
Yeah, you do have a point. Nothing from nothing leaves nothing.
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Old 12-19-2008, 04:51 AM
 
19,108 posts, read 20,677,468 times
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You cannot "help" homeowners when they have no job.... You cannot "help" homeowners who can't afford their homes even at realistic rates.... You cannot "help" homeowners who can't control their own spending..... You cannot "help" homeowners when their business tanks and they don't have enough income to pay their correct mortgage.... The only thing you can and should do is help the homeowner move on in life and find a cheap place to stay and a job to feed themselves... but you don't hear Congress or the President doing that... they got so many opportunities now to loot while everyone worries about the economy... they like the distraction...
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Old 12-19-2008, 09:15 AM
 
Location: Great State of Texas
86,068 posts, read 74,781,320 times
Reputation: 27602
I think it would have been an excellent program had some regulations been in place to make sure people got homes/mortgages they really could afford.

They (the gov't) were acting like it was only a high interest rate problem with ARMs resetting when it was actually much, much more. Interest resets were the least of their problems.
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Old 12-19-2008, 02:50 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,171,725 times
Reputation: 6374
Quote:
Originally Posted by evilnewbie View Post
You cannot "help" homeowners when they have no job.... You cannot "help" homeowners who can't afford their homes even at realistic rates.... You cannot "help" homeowners who can't control their own spending..... You cannot "help" homeowners when their business tanks and they don't have enough income to pay their correct mortgage.... The only thing you can and should do is help the homeowner move on in life and find a cheap place to stay and a job to feed themselves... but you don't hear Congress or the President doing that... they got so many opportunities now to loot while everyone worries about the economy... they like the distraction...
I saw that mentioned on raincityguide.com, recently. Basically said the same thing. Doesn't matter what the rates are if you don't have a job/and/or enough saved to buy a home. They didn't mention the looting so much.
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Old 12-20-2008, 03:50 PM
 
Location: Cary, NC
1,036 posts, read 3,727,213 times
Reputation: 505
This program was junk to start, much like the FHA Secure Program before it. A few lenders on here posted how great it was going to be... but I think the majority were clear it was a strategy to get votes.

Look at us, we are helping people save homes... go vote us back in!!!

In reality, banks will not take the loss if they see any hope for the person to make the payment. Why take the loss upfront and give the future appreciation to the homeowner/FHA?? If there was any "hope", then just modify the loan and hold out for better times.

Only in cases where the homeowner had no chance of recovery would the bank participate. In those cases, better pass on the time/expense of foreclosure to the FHA. Unfortunately, those borrowers with super high debt, no income, bad credit, etc will not be accepted by FHA.

So its a Catch-22. Banks made this clear in testimony to Congress where they said the program was the option of last resort. They did make changes recently to improve the program... but its still not enough.
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