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Gov't to ease foreclosure rules for unemployed - Yahoo! Finance (http://finance.yahoo.com/news/Govt-to-ease-foreclosure-apf-1443484881.html?x=0&sec=topStories&pos=2&asset=&cc ode= - broken link)
Great, the new housing plan now calls for letting those with FHA loans to get a minimal 12 month grace period BEFORE foreclosure proceedings began. (FHA loans are govt backed loans where you don't need to put down more than 3.5% down on your home).
This housing mess is getting ridiculous. With each government new program, it just makes the full recovery much worst. It started with Bush 43's 2007 mortgage and forgiveness act which essentially made short sells popular. Before that law, if you short sold your house, you would have a tax liability for the amount shorted. So short the bank $100K, you end up owing the IRS $33K on the taxes. Pretty big deterrent don't you think? I do. That's the way it should be. Or declare BK and discharge the debt. Very quick and simple. You have so many people gaming the short sell rule and literally hiding money each month because they aren't paying any rent or mortgage.
Look I understand people need help. Help those who actually can pull themselves through. But government program after government program will keep on bringing in people who will try to game the system.
This FHA new initiative 12 month grace period is just going to encourage more and more people to default on their loans and essentially live 2-3 years "rent free."
What next? Principal mortgage reduction? It basically penalizes the family down the street who put 20% down and pay into the principal each month while giving those who have no skin in the game a free ride.
Just make government backed housing loans like government student loans. There's a reason very few default on their government student loans....they can't even in bankruptcy. Short of death, you can't can't walk away from a student loan backed by the government.
Got a HAMP modification I didn't need, and look forward to scamming from another Obama inspired bailout. Thanks Obama! Still will never vote for you, but thanks anyway!
I understand people need a helping hand, but if you are going to be more than 3 months late in your mortgage, chances are you are down. You've reach almost the point of no recovery.
That's why these government program will not work. You are ultimately just delaying the inevitable.
People will delay the system. In Florida, people go usually close to 3 years before final foreclosure. So what Obama is doing is going to add another year to the foreclosure process. People aren't stupid. They will just realize, hey, I am living rent free and can save my money for 4 years. I'll just funnel and hide it in small amounts.
At the 4 years, they would have literally saved probably close to $100K in housing payments (especially those in high cost/high rent places).
yeah,, another bailout that will do nothing..at taxpayer expense
Awww, come on now, this has to be worth a few thousand more votes for Obama.
Panderer-in-Chief.
I'd like to know once again where Obama derives his Constitutional power to intervene in private contracts?!
It created a 2nd RE bubble when Obama granted the 1st time homebuyer credits and this artificially keeps more houses off the market creating yet RE bubble #3. If he had just let the market correct itself naturally by allowing values to plummet all the way to the basement originally we'd be half way out of the hole and still regaining values by now.
Well, at least this gives some of his constitutents more time to strip the homes they've defaulted on of all the copper and fixtures before they flee. Obama has raised stealing from the taxpayer to an art form.
Yeah the OP writes what his emotions say and doesn't think things through. It's funny how someone thinks that a keyboard makes them know more about a given issue than the banking, real estate and financial industries. Were we to do what he is suggesting then the real estate mess would be worse.
I wonder if we can get an IQ testing captcha added as part of the posting process.
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