Home repair -- Obama's mortgage plan is a long-awaited lifeline

[babylonsister]

http://www.post-gazette.com/pg/09051/950347-192.stm

Home repair -- Obama's mortgage plan is a long-awaited lifeline
Friday, February 20, 2009


It took a change in presidents for the federal bailout to start bailing out average Americans. That's the promise of the $275 billion package unveiled by President Barack Obama on Wednesday to help families hang on to their homes, stabilize real estate values and spur the housing industry.

Although the details won't be final until March 4 when the plan takes effect, the administration estimates it could help up to 9 million Americans either stave off foreclosure or refinance their mortgages.

The measures would use $75 billion from the $700 billion financial bailout to subsidize loan modifications to reduce monthly payments for distressed borrowers. The other $200 billion would be financial backing for Fannie Mae and Freddie Mac, the government-controlled lenders that own or guarantee loans for 30 million homeowners.

Mr. Obama's three-part plan would help about 4 million people who are in danger of losing their homes; give relief to homeowners who are keeping up with their payments despite high interest rates, but need help to refinance due to lack of equity; and raise the amount of credit available for new mortgages through Fannie Mae and Freddie Mac.

The aid to distressed borrowers would come partially from concessions made first by the lender to reduce a homeowner's payment to 38 percent of gross monthly income; the government's money would be used to cut the payment further, to as low as 31 percent of income.

Although this is the latest financial life-jacket to be thrown by the Obama administration, the Homeowner Stability Initiative will not save every troubled borrower. For instance, those who owe more than 105 percent of their home's value will not be eligible for refinancing under the plan.

This costly, complicated program is not perfect. Analysts will debate the details and inevitably find certain parts lacking (like the overly generous incentives to lenders, for example). But this multi-pronged, robust response is way overdue. Half a year after Washington began its historic rescue of large financial institutions, it's about time it threw a lifeline to the little guy.

[sam sarrha]

1. our house was arbitrarily devalued $20,000 by the city, 20%.. now we cant refinance...

[EmilyAnne]

2. That's terrible, sam. Where do you live? n/t

[sam sarrha]

5. Winston Salem NC... We're checking to see if we can appeal, if paying more taxes on 3% less mortgag...

is better than what we pay now.. this was stupid.. i pay more state tax than income tax, and they drop the tax value of my house.. if we cant refinance we will probably Foreclose by june if my wife loses her job..

she will probably get a job in Georgia, i have a good union job, very secure, i will have to stay here till i pay down the bills acquired having to move 3 times into 3 time zones, due to 4 outsourced jobs during W

[MoJoWorkin]

3. The first sentence of the op-ed says it all.....

"It took a change in presidents for the federal bailout to start bailing out average Americans."

[CJPR]

4. Losers

Rush Limbaugh and his Rat-Pack of Right-Wing Media Hyenas are now fulminating about Obama's new Foreclosure Assistance Bill which they say will help the "Losers" in our society. Homeowners who are now in default on their mortgages are America's "Losers", and do not deserve any assistance from taxpayers. This is Rush's idea of Dog-Eat-Dog, Winner-Take-All, Losers-Be- Damned Capitalism. The fact that Rush's plan would fill our streets and shelters with thousands more homeless families, and leave banks holding empty worthless homes with no payments being made to the banks at all doesn't seem to matter. Rush has an Ayn Rand "Fountainhead" ideology to defend, and he will defend that Far Right Extremist ideology to America's last dying breath. Well, in case Rush hasn't noticed, "Losers" are what the Republicans were in 2006 and, even more so, in 2008. By 2010 and 2012, Obama and the Democrats will own the Stimulus Bill and the Homeowners Assistance Bill, both of which will probably have proven very successful by then. The Republicans will own the title of Obstructionist Destructionists, in light of their fierce opposition to these recovery programs. And, by that time, the GOP and the Right-Wing will be the biggest Losers of all. If you think Republicans are Losers today, wait until 2012 -- "You Ain't Seen Nothin' Yet."

Please visit my Blog: "Conservatives Are America's Real Terrorists"
http://conservativesarecommunistss.blogspot.com/