>33 of Obama's Mortgage Relief Recipients headed back toward foreclosure

[Slew Foot]

http://finance.yahoo.com/news/Borrowers-exit-troubled-Obama-apf-887634101.html?x=0

Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled homeowners were disqualified or dropped out.





Good to see that the guy who said in the state of union address, "Im for personal responsibility.", is so willing to hand out your tax dollars to stupid idiots.
Lets see here, we turned the economy to crap by loaning out too much money to people who didnt have a pot to piss in, and well get back on track by doing the same thing? Genius!

 

[BoberFett]

I'm shocked. Shocked I tell you.

 

[JS80]

Loliberals

 

[RbSX]

Yeah saving people that didn't have the financial sense to not get into a bad mortgage defaulted again?

Is this surprising?

 

[LumbergTech]

so 60 % are doing ok?

of course that doesnt count

 

[mrjminer]

so 60 % are doing ok?

of course that doesnt count

At this moment... however, something stands out to me in the article:

Last month alone,155,000 borrowers left the program -- bringing the total to 436,000 who have dropped out since it began in March 2009.

Why would over 1/3 of the people leaving the program have left last month? I'm curious to see a report that explains this a little more in-depth. I think it's shoddy reporting on the AP's part to not be a little more specific and not to have dug a little deeper to find out what happened to cause 1/2 the people that had left in the previous year combined to suddenly leave. The numbers for the first year average out to be pretty good, but this should leave you wondering what these numbers are going to look like in the next couple of months.

I'm not familiar with the program, but I'm sure someone can chime in. Since it's been about a year or so since it's been enacted, I'm given the impression that some vital part of it was set to only last a year.

 

[StageLeft]

Most of the government's actions to date have been come to Jesus delay tactics. Americans have gotten little for their new, huge deficits other than a delayed execution.

 

[dmcowen674]

33% of Obama's Mortgage Relief Recipients headed back toward foreclosure

Cool

You Republicans should be thrilled because clearly people should not be in houses anyway.

 

[MotF Bane]

Cool

You Republicans should be thrilled because clearly people should not be in houses anyway.

Why do you hate America?

 

[MotF Bane]

Most of the government's actions to date have been come to Jesus delay tactics. Americans have gotten little for their new, huge deficits other than a delayed execution.

Yep. There's a housing bubble, and the government is trying to reinflate it.

 

[Zebo]

Color me surprised. Whats the old axiom..something like "subsidize something get more of it, tax something get less of it." Subsidizing deadbeats yields more deadbeats. Subsidizing fail leads to more fail. Everyone knows this.

All moral obligation to pay your debts went out the window with TARP.

 

[werepossum]

http://finance.yahoo.com/news/Borrowers-exit-troubled-Obama-apf-887634101.html?x=0

Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled homeowners were disqualified or dropped out.

Good to see that the guy who said in the state of union address, "Im for personal responsibility.", is so willing to hand out your tax dollars to stupid idiots.
Lets see here, we turned the economy to crap by loaning out too much money to people who didnt have a pot to piss in, and well get back on track by doing the same thing? Genius!

The bigger problem is that HUD, Fannie Mae, and Freddie Mac conspired with Congress to make the original home loans without such "outdated metrics" as verification of income and credit history, not to mention independent third party appraisals, in order to fulfill an insane HUD requirement for the percentage of low and moderate income borrowers. Fannie Mae and Freddie Mac have been changed from their mandate as tools to help middle class people who had the income to own homes but couldn't find credit, to become tools to help people without the income or discipline to own homes own them anyway. Once those mortgages have been made the taxpayers are on the hook anyway.

One reason this program is losing popularity is because it isn't really structured to help the borrowers so much as the banks. Right now banks have some protection via insured loans but otherwise have to crash and hope for bailouts; moving a borrower from a standard loan to the Obama bailout program loan provides the bank with full protection and usually lowers the borrower's payment by little. A lot pf people probably signed up thinking Obama was going to make their house payments and then get frustrated when, as usual, it's merely the establishment taking care of its own.

 

[Atreus21]

http://finance.yahoo.com/news/Borrowers-exit-troubled-Obama-apf-887634101.html?x=0

Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income.

Wait a second. Didn't the entire sub-prime crisis happen for specifically this reason?

 

[halik]

[/b]

Wait a second. Didn't the entire sub-prime crisis happen for specifically this reason?

No, wall street fat cats and oil company executives.

 

[BoberFett]

Cool

You Republicans should be thrilled because clearly people should not be in houses anyway.

Some people should, just not you loser.

 

[Naeeldar]

[/b]

Wait a second. Didn't the entire sub-prime crisis happen for specifically this reason?

More or less yes. There was a perfect storm to of new types of loans and a relaxing of regulation that tied with it but that was without a doubt a primary cause for the crisis.

 

[joebloggs10]

so 60 % are doing ok?

of course that doesnt count

Nope, it doesn't.

1,240,000 borrowers
436,000 have dropped out of the program. That's ~35%.
340,000 have received permanent loan modifications and are making payments on time. That's ~27.5%.
That leaves 464,000 who either are in the program and haven't been helped or were "helped" and still can't make the payments.

So, 60% are NOT doing ok, only 27.5% are.

 

[Slew Foot]

Cool

You Republicans should be thrilled because clearly people should not be in houses anyway.

If you cant afford it, get an apartment. If you cant afford that, move in with your parents.

 

[GuitarDaddy]

Saved 2 out of 3, that aint bad, better than I thought it would turn out

 

[drebo]

House prices in California are still well above rates that the market can naturally sustain. I look forward to this new wave of forclosures. I'd been waiting and counting on it. Also, in California, banks can use the courts to force forclosure...so...deadbeats can leave and house prices can fall another 10-20% and they'll almost be at market-sustainable rates. At least in my area, that would be the case.

There is no reason a 3 bedroom, 1-1/2 bath house in a transitory neighborhood in Suburbia built in the late 1990's should be selling for $130K. Same house 3 years ago would have been ~$300k. I have no problem with first-time-buyer inscentives or special loans (FHA) that require lower down payments...but giving interest-only ARM or balloon payment loans to people without the income or job stability to properly pay for a house over a long period of time is just plain stupid. However, the consumers are at fault just as much as the banks.

We need to stop subsidising things like this. Not letting the market come to terms with its own prices will just reinflate the bubble and we'll have a recurrence in less than 10 years.

 

[drebo]

dp

 

[drebo]

Saved 2 out of 3, that aint bad, better than I thought it would turn out

Reading comprehension fail.

Look at the post two above yours. $75 billion dollars to save 340,000 mortgages. That's $220,000 per house. I'd bet most of those houses could be paid down FULLY with $220,000. More gov't waste and inefficiency.

 

[IndyColtsFan]

Cool

You Republicans should be thrilled because clearly people should not be in houses anyway.

How's your mud hut in Somalia? Oh, THAT'S right -- you're too chicken to go and back up all of your tough talk.

 

[classy]

http://finance.yahoo.com/news/Borrowers-exit-troubled-Obama-apf-887634101.html?x=0

Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled homeowners were disqualified or dropped out.





Good to see that the guy who said in the state of union address, "Im for personal responsibility.", is so willing to hand out your tax dollars to stupid idiots.
Lets see here, we turned the economy to crap by loaning out too much money to people who didnt have a pot to piss in, and well get back on track by doing the same thing? Genius!

Ummm, the article doesn't say these people are headed back to foreclosure. The article doesn't know why these people left the program or that these people will end up in foreclosure.

 

[JockoJohnson]

Cool

You Republicans should be thrilled because clearly people should not be in houses anyway.

People shouldn't be in houses that they couldn't afford in the first place. If you lost your job or the downturn in the economy affected your income, I support the help. But for those that lied on their mortgage application to get into one of the overpriced houses during the bubble....they can go fuck themselves.