Obama throws $75 billion lifeline to homeowners

[Pirate Smile]

Source: Associated Press

MESA, Ariz. – President Barack Obama threw a $75 billion lifeline to millions of Americans on the brink of foreclosure Wednesday, declaring an urgent need for drastic action — not only to save their homes but to keep the housing crisis "from wreaking even greater havoc" on the broader national economy.

The lending plan, a full $25 billion bigger than the administration had been suggesting, aims to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession.

Government support pledged to mortgage giants Fannie Mae and Freddie Mac is being doubled as well, to $400 billion, as part of an effort to encourage them to refinance loans that are "under water" — those in which homes' market values have sunk below the amount the owners still owe.

"All of us are paying a price for this home mortgage crisis, and all of us will pay an even steeper price if we allow this crisis to continue to deepen," Obama said.



Read more: http://news.yahoo.com/s/ap/20090219/ap_on_go_pr_wh/obama_home_foreclosures;_ylt=AvFa_Xv_HyZ18fvVKaO69t6yFz4D

[Quiz Master]

1. I think this is good.

I certainly prefer helping homeowners to throwing yet more money at bailout bums.

[Kalyan]

2. I don't like the media's way of putting it ...

When the banks got TARP money, it was called re-capitalization, bail-out and a hundred other things that doesn't sound sinister. But when it comes to homeowners, the title is negative - "Throws Lifeline" as if Obama is doing something dirty and that the howeowners don't deserve it ..

the MSM can never let go of it's conservative ideology ...

[Pirate Smile]

3. I took it as a positive way to phrase it - Obama is trying to rescue homeowners.

"Throw a lifeline" = save someones life = rescue.

Obama isn't trying to save Banks or Corporations. He is trying to save regular people - "homeowners".

I took it as a positive.

[Frank Booth]

4. How much do I get as a responsible renter?

I could have bought way more home than I can afford like many around here, but chose to be responsible. What's my reward?

[Stellabella]

5. There's reward here for people current on their mortgages.

The point isn't that they couldn't afford the house, the point is the price was overinflated when they bought and now their mortgages are 'under water' - worth less than the mortgage. These people are stuck - they can't refinance to a lower rate, and they can't sell the house.

Not everybody who is in trouble 'chose to be irresponsible'.

I could use help too - my mortgage rate is too high and I make too much to qualify for any of the programs, but am having trouble refinancing because I'm self-employed. But I don't take that out on others who need help.

[Frank Booth]

8. So, you're saying that they get rewarded because they spent too much for a house.

It's also nice to see that those people who bought Hummers with their refinance will get rewarded as well.

[Robbien]

17. So you suggest we again give the money to the Banksters instead?

We've been throwing trillions at the Banksters in order to correct the problem and all they have done so far is buy gold plated toilets, send the staff on million dollar junkets to Vegas and give themselves billion dollar bonuses.

I didn't see you whining about giving the real criminals, the banksters, all that money.

But give money to the people who can help dig themselves out of the hole the banksters created and you get outraged. "Where's mine" you whine.

With this crew in charge of finances, the only choices they can come up with is to either give the money to the banksters or give it to the homeowners. You are silent when the billionaire banksters get handed our money to squander away and are outraged when middle American homeowners get our money to save their homes.

No wonder this country is in such a funk.

[Stellabella]

18. Oh grow up.

It's not a very progressive view to whine about 'where's MY stimulus' when people are actually being helped. You have quite a narrow worldview, don't you? If something, whether it's research or a political bill, doesn't help you directly, it's a bad thing?

Buh-bye.

[Mr. Hyde]

19. Up until fairly recently, you could write off the entire cost of your HUMMER up to $100,000

as it stands now, I think you can write off up to $30,000 of its total price.

[Pirate Smile]

7. Obama isn't doing this to reward anyone. He is trying to stop our economy from

entering a death spiral.

God, the "what about me" wailing is loud - and, no, I'm not getting anything out of this personally except hopefully the economy turns around for everyone.

I've seen a lot of "me, me, me" posts today. It's not fair. Yes, we know.

[Frank Booth]

9. Death spiral?

Because a two bedroom house in Southern California now sells for $700,000 instead of $900,000? When it should be selling a bit above $300,000 like it was 8 years ago?

Listen, I know people who bought houses with no money down. They knew what they were doing. They were gambling, thinking they'd strike it rich once they flipped the house in a couple years. I also know people who refinanced their homes to buy luxury cars. I don't think they deserve to be bailed out, and I don't think letting houses return to a reasonable value level will cause a "death spiral."

Why do so many people here seem so clueless about how out of control the housing market got and how recklessly people acted?

[kimmylavin]

10. And why do so many people here seem so clueless about how other factors can affect homeowners?

You have heard - I'm sure - of the growing unemployment rate in this country?

Some people who put a good amount of money down on a house they COULD afford, then made payments until they LOST THEIR JOBS (and associated healthcare, etc) are now unable to afford their homes.

Yes, there are people like you mentioned. There always are.
But stop lumping everyone who is having trouble together.

I'm getting sick and tired of this same bullshit line being thrown around.

[Frank Booth]

11. Yeah, so capitalism sucks. But them's the rules.

As some know well, owning a house is not a right.

[kimmylavin]

13. Thanks for the words in my mouth.

When did I mention capitalism?
When did I say owning a house is a right?

All I was saying was to lay off the idea that EVERYONE who is in foreclosure/mortgage trouble got there because they were "reckless".

[firedupdem]

14. Thank you so much! People forget that jobs were sent overseas

etc. My husband and I both lost our jobs and I didn't own shit I couldn't afford and never lived beyond my means. I'm amazed at some of the comments I'm reading today.

[marksmithfield]

16. Exactly

Last year I could still afford payments on the house we bought 12 yrs. ago, Not large payments at all. But it now is damned hard to scrape together enough money to eat and keep a roof over our head. Responsible renter my ass. He has his roof thanks to the person who decided to rent an apartment to him. I have had to remodel many rentals for clients, and after seeing what the damages and costs are I am surprised anyone wants to rent out a place to anyone "responsible" or not.

[marksmithfield]

15. As a homeowner

I mildly object to this. How is renting "responsible" as opposed to ownership? I certainly have more responsibilities than a renter.

[Maine-ah]

20. many of us bought responsibly.

I sure as hell did, back in 2001. The current economy is making it very difficult for us to pay our bills.

[ConcernedCanuk]

6. so - how did this crisis happen?

.
.
.

I believe the BFEE and the PNAC gang raped their own citizens

it was a Bush family plan

and they won BILLIONS .

that's what I believe

[truthisfreedom]

12. Good. Anything he can do to stem the tide of foreclosures will help the people

with houses on the market. I have one on the market right now, and I'll just break even on what's left of the mortgage if I can sell it. I can't sell it if foreclosures keep happening.

Of course, that won't return to me the $120K+ I have put into that house in improvements.

But it will get me out of a mortgage on a house that is going under water RIGHT NOW.

Thank you, Obama! I'm not looking for a handout! Just help those who can't pay their mortgages so those of us trying to sell can get out!

[Robb]

21. There's nothing for *ME* in this plan.

I think people need to consider a new way of thinking here. Analogy time:

Think of a house on a block sitting empty due to foreclosure. It's on the corner of the busy street leading into a cul-de-sac of say 20 homes. The grass is high, windows broken, people are breaking in and drinking beer in it. It's dragging the property values of the neighborhood down.

So one guy on the block says hey, there's a program where if we all chip in $500, we can leverage that into getting the old house fixed up, painted and moved-into. Everyone agrees it's a great idea, they'll reap much more than that $500 in the long run. One guy says hell, no, he ain't contributin'. Not his fault the house is all to crap.

The fundamental truth this stimulus package (end analogy time) addresses: helping any of us will help all of us. And no, I don't mean CEOs and bankers, any more than anyone else. I don't mean people who "deserve" it, because we sure as hell can't figure that out effectively.

This is the notion that we all benefit from improving the lives of those around us, that 50 people spending $1 is better than 1 person spending $50. There's leverage to be had here. I wish people would consider the bigger possibilities of all this before dismissing it.

That's all I got. :hi: