Did anyone hear about a mortgage cap for underwater mortgages?

[wryter2000]

I heard on Stephanie Miller (Hal Sparks and John Fugelsang) and then on the CNN radio news during the show that there could be a temporary cap on mortgages for people who are underwater.

Basically, underwater mortgages would be temporarily capped at 31.5% of gross income. Does anyone know about that? Is it in a bill that's in Congress now, or is it only something that's being proposed?

I figure that could save me $11,000 per year. :bounce: I hope I didn't hallucinate it.

[Beetwasher]

1. Yes, There Was A Thread About It

I think it's on the greatest...

Here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8019748

This is going to be so kick ass huge. Dare I say yet ANOTHER big fucking deal!

[wryter2000]

14. Yeah, this'll be enormous

After reading it, it isn't entirely clear how good with would be for me, but still, it's a great idea, and we don't have to get DINO votes to get it.

[NNN0LHI]

2. I am starting to think anything is possible under President Obama and our Democratic Congress

I am serious.

Don

[tridim]

13. Yep, it's obvious now that he's the real deal.

If I hear another DU'er claim he's all talk and no action I'm going to go ballistic.

He is EXACTLY what this country needs right now. We are so lucky.

[stray cat]

3. to bad they don't do the same for renters

[Beetwasher]

4. Wahhh!

Well, in that case, don't do anything. Pathetic. :eyes:

[stray cat]

5. on the east coast we pay about 50% of gross; a one br condo is over 350,000

[Beetwasher]

7. No Shit, I Leave On The East Coast

Lived in NYC for over 20 years. So what?

[stray cat]

6. Its a great way to get a house!

maybe someone will buy me one

[Beetwasher]

8. ?

:shrug:

[laughingliberal]

12. Huh! I didn't see anything in the plan about buying any of these people a house

I did see some help for modifying mortgages for those whose income has gone down to avoid dumping their houses on the market. I believe there are some long-standing programs in place for helping low income renters get help securing shelter. Wouldn't that be the point of section 8 subsidies, which I think is largely given to renters?

[JuniperLea]

9. If the landlord's mortgage goes down...

And/or home prices go to their natural level because of this readjustment, renters will get their chunk. Landlords will be competing with like-properties that have lower rents. Like everything else, this isn't instant... you can't just add hot water and shake. The seeds have been planted, the pot fertilized and watered... spring is upon us... patience is a virtue.

That said, I'm not the most patient person in the world <=== UNDERSTATEMENT ALERT!!!

So I'll understand if renters whine a bit... it's your right. But instead of whining, it might be worthwhile to work toward laws that make sure landlords do the right thing by passing on the windfall to their tenants so they can stimulate the economy with the extra $$ every month.

[laughingliberal]

11. +1 nt

[taught_me_patience]

15. You don't understand economics

Rents are determined by supply and demand of renters and houshold income and NOT owner cost. This will do nothing for rents.

[JuniperLea]

16. Please go back and read again...

There is a way to work around that... and it needs to start now.

[laughingliberal]

10. They aren't helping all homeowners, either. But that's not the point.

The program will not be available to those already delinquent. The program is an attempt to start stabilizing housing and get some of the money the banks were already given to actually be used to slow foreclosures. It should stem the tide of the those underwater who are still making payments from walking away and further tanking the market in their area.

It's not going to help us keep our house which we will likely lose. But I think it can mitigate some of the damage that the huge numbers of foreclosures are doing to the overall economy. And the economy improving will help everyone to some extent.

[ohheckyeah]

17. I thought this was just for mortgage payments

for 3 - 6 months for the unemployed. Evidently I missed something.