President-Elect Obama Proposes Moratorium on Foreclosures »
Posted By altnrg 1 year, 1 month ago in NewsUS President-elect Barack Obama proposes 90-day foreclosure freeze to initially address housing crisis.
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capecoralMComment removed: Retracted by user3 Replies
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langdonakn1 year, 1 month ago
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jordan111 year, 1 month ago
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No one is going to have their home bought for them. The loans will be rewritten without adjustable rates or balloon payments, and they will pay for their own houses. Because it takes so long for anyone to get off their butts and get this started, what Obama suggests will give them that time to get it going. Meanwhile, it will save thousands of people from losing their homes, as so many already have waiting for the morons in government to do something.
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Jeboba1 year, 1 month ago
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quit drinking the republican koolaid! Nobody's house is going to be bought for them! PAY ATTENTION! I know that's difficult as most Repugs have ADHD. All they can remember is the same lame talking points when reinforced daily by Faux news, Limbaugh, etc.
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You really do have to stop listening to them! Find a reason to excercise your brain for a change! -
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thehp581 year, 1 month ago
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The "banks" really weren't the cause of the problem in the first place. What caused it was an act that passed in the mid-90's hoping to give everyone the opportunity to own their own homes. This fell under fannie-mae and freddie-mac (government agencies). there was quite a bit of corruption in the whole thing. Baks were FORCED to loan to people who could never pay back the $ or face very severe penalties - meanwhile the big dogs at freddie-mac and fannie-mac made huge commisions on worthless loans. this was propelled by a democratic presidency and congress.
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jordan111 year, 1 month ago
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http://money.cnn.com/2007/10/15/markets/junk_mortg...
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What caused this was greed. No one forced anyone to make bad loans. The propaganda of the right wing to take the blame off of deregulation is BS. Fannie & Freddie are a drop in the bucket to the numerous predatory lending industries that had a field day.
And by the way. Every last State Attorney General signed on to investigate the fraudulent lending practices going on all over this nation. And guess who stopped their investigations? Little george did. -
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nostalgia1 year, 1 month ago
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The Government-Created Subprime Mortgage Meltdown
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A man named Bruce Marks became quite notorious during the last decade for pressuring banks to earmark literally billions of dollars to his organization, the "Neighborhood Assistance Corporation of America." He once boasted to the New York Times that he had "won" loan commitments totaling $3.8 billion from Bank of America, First Union Corporation, and the Fleet Financial Group. And that is just one "community group" operating in one city – Boston.
Banks have been placed in a Catch 22 situation by the CRA: If they comply, they know they will have to suffer from more loan defaults. If they don’t comply, they face financial penalties and, worse yet, their business plans for mergers, branch expansions, etc. can be blocked by CRA protesters, which can cost a large corporation like Bank of America billions of dollars. Like most businesses, they have largely buckled under and have surrendered to their bureaucratic masters.
Consequently, banks in every community in America have been forced to hold a portfolio of bad loans, euphemistically referred to as "subprime" loans. In order to compensate themselves for the added risk of extending these loans, many lenders have increased the lending fees associated with mortgage loans. This is simply an indirect way of doing what banks always do – and what they must do to remain solvent: charging effectively higher rates of interest on riskier loans.
http://www.lewrockwell.com/dilorenzo/dilorenzo125....
This is what government "help" creates -
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Jeboba1 year, 1 month ago
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and George Bush gave it a push off the edge of the cliff in 2002. READ THIS! I do have to warn you though that the source for this link is a Republican site! GASP! ... The WHITE HOUSE!
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http://www.whitehouse.gov/news/releases/2002/06/20... -
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Jeboba1 year, 1 month ago
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My wife worked in the mortgage business. Here is the truth!
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The banks weren't FORCED to do anything. Fannie and Freddie only agreed to buy the mortgages from the banks. Unscrupulous banks, spurred on by George Bush in 2002, http://www.whitehouse.gov/news/releases/2002/06/20... had nothing to lose. They made the loan and immediately sold it to either fannie, freddie, or investment banks like Lehman, etc.
The banks that are in trouble are the ones holding the bad paper, not the ones that actually approved the loan. The reason we are in trouble can be explained by one word GREED. -
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oakmont1 year, 1 month ago
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Boy, no kidding...they seem to forget who made the rules The demobrats would like to blame everything on the Republicans..they were also in Congress when they did away with the "easy" assumable loans when foreclosure rates stayed below 4%! o.k. so there were some investors who just took over the loans, scammed a few months rent and never made a payment...but almost all that took over the loans did so with the intent of buying and keeping the property, or renovating and reselling...EITHER WAY IT KEPT THE FORECLOSURES DOWN! So, we may have had a Republican Pres at the time who was not for eliminating the assumable loans, but the Demobrats caused the rise in foreclosures at that time too. Bring back the assumable loans...many owners who are not upside down yet but owe about what the home is worth would be able to sell before reaching the point of no return! Getting investors to just take over loans would get rid of about a third of the foreclosures now and what about the rest that will occur over the next 2 years. We have 2 more years of bad loans that will come to fruition with mortgage payments almost doubling and no equity, absolutely the next big wave of foreclosures! We are only half way through the foreclosure problem. Just putting a stop to the foreclosures will not help. And what about those private people who carried the financing...they are not insured and would need to be able to foreclose to get their money out, but I don't think the Dems are smart enough to figure out that some of the people carried the financing and rely on that for their income! They need to be an exception and able to protect their mortgage as private individuals! Banks are willing to sell for 50 to 60 cents on the dollar to a stranger and should just do appraisals and bring the loans down to whatever ratio the people had in the beginning, such as 80% or 90% of the new value and adjust the payments accordingly. Why bother with all of the qualifying process and everything, as we will long be out of time and money before they solve 10% of the problem.!
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lilbuddyboy1 year, 1 month ago
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Amen to thehp58. And the mainstream media didn't cover that story because they are in the tank for Obama. Now Obama is calling for a moratorium on a crisis created by the Democrats. A 90 day moratorium until he becomes President, which is stupid because those foreclosures will only be delayed for those 90 days and things will only be worse then. That is not wise economic policy it is politics. Wake up people you have been had by the media.
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jordan111 year, 1 month ago
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Jeboba1 year, 1 month ago
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WRONG again! Nice try at spinning it to the Dems and Obama. HERE is what REALLY happened!!
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http://www.whitehouse.gov/news/releases/2002/06/20...
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Eagle_Eye1 year, 1 month ago
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IMHO, one way to make this even for every one is to not only restructure the mortgage loans, but regulate the interest rate and bring it down to 5% for all mortgage loans. Good credit people and bad credit people.
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This would free up extra money in the family budget to be able to go out and spend a little thus helping the economy. But at the current rates of 7+% it is hard to pay the mortgage and have any thing left over to help stimulate.
This is not a Dem doing, this started with Reagan and deregulation of the banking business.-
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Jeboba1 year, 1 month ago
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Wow, somebody FINALLY got it right! Reagan deregulated everything in sight. He said it would make things more competitive and prices would come down. WHAT a joke. Even he knew that was crap. All the deregulating by the Republicans paying back their cronies and lobbyists is what led us to high priced oil, high priced communications, UNSAFE air travel, etc. etc.
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Remember, when a bipartisan group in congress tried to rein in the mortgage industries in 2004(?) the REPUBLICAN senate shot it down. "Good grief... we couldn't POSSIBLY regulate anything... we're Republicans!"
Well now we know where Republican policies against regulation have gotten us. Hopefully the Dems can straighten it out but it's gonna be tough. It will take a strong bipartisan effort. Unfortunately, I don't think the Repubs can change their ways or admit they were wrong.
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alakazam1 year, 1 month ago
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You just don't have enough sense to get it...do you?
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I really hate that you don't understand the fact that if the Economy goes...you are going with it.
You do not live in an economic vacuum...if the banks are failing it is because they are falling short on assets.
That means no reserve, hence no credit.
Cash and carry? Sure...right after we go back on the gold standard
http://www.answers.com/topic/gold-standard -
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Jeboba1 year, 1 month ago
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Your rhetoric and bull crap is tired Georgia. Really tired. You're just so desperate. If you and your ilk like Klarissa and KarlyC would devote even half as much energy to supporting your government and helping to find a solution rather than beatching all the time, you might find you could actually be happy rather than miserable as you have made yourself.
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guarded1231 year, 1 month ago
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I have no problem with helping people out who lost their homes or are losing their homes through no fault of their own---those who lost jobs because the company failed or something but I have a BIG problem with them bailing out EVERYBODY who bought bigger, more expensive homes than they knew they could afford and who racked up huge credit card bills with unnecesary spending, not things that they absolutely needed. Those of us who have played it straight are having to bail out those who went against the rules. I have don't have a bigger house than I can afford and I don't have a lot of things, so why do I have to be penalized for paying my mortgage and keeping my credit score high? Just doeesn't seem right IMO.
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k9kssr1 year, 1 month ago
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I agree that some, maybe most, of this housing crisis lies at the feet of the people who took out the sub-prime loans and now are not going to be held responsible.. I've made bad financial decisions in the past and simply had to bail myself out and dig out of the hole. We live and learn and hopefully don't make the same mistakes. What are these people learning?
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Jeboba1 year, 1 month ago
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Nobody is being bailed out. What is being proposed is that the terms of the mortgage be eased so they will NOT default on the loan. If they still can't pay it, then they will be foreclosed on.
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You can't really accuse these people of 'going against the rules'. Nothing illegal was being done. They listened to some Mortgage broker (used car salesman) tell 'em everything was legal and good, yada yada. The borrowers who didn't do any research or pay attention, bought it hook line and sinker.
There are also the borrowers who went for the ARM because they had good jobs and had no problem with the loan escalating later. Unfortunately, when later came around, they didn't have jobs anymore!
You can't tell me that if you were offered a payment of $500 for 5 years, to become $1500 after that, that you would say 'no thanks, I'd rather pay the full $1500 a month for the next 5 years". Yeah, right. Sure you would. -
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ntrystme1 year, 1 month ago
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Not a Dem doing? Go to Youtube and watch the videos of Barney Frank's committee when Rep. Richard Baker and the oversight agency tried to get toughen accounting rules. They were vilified by the Dems. Funny how during the campaign we never heard about Franklin Raines and the 90 million he took down from Fannie Mae, or the contributions he gave to Barney Frank, Chris Dodd and Obama, and how Raines is an advisor to Obama. Even Rep. Artur Davis admits now they were wrong to not toughen the rules.
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Change? Rahm Emanuel is a former director of Freddie Mac (a cool quarter mil) and a former investment banker! This is change??-
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alakazam1 year, 1 month ago
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"Franklin Raines and the 90 million he took down from Fannie Mae"
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We are discussing the Theft and misuse of over 200,000 times that amount. You should probably take an interest in that.
Perhaps we need to deal with the head of the serpent and not it's tail? -
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Jeboba1 year, 1 month ago
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I have no problem villifying everyone responsible. Dems and Repubs. But remember, when the committee tried to 'regulate' it was the Republican Senate that voted it down! You can't have it both ways you dolt! PAY ATTENTION!
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Also, if you want to really point fingers at what got us where we are, read this
http://www.whitehouse.gov/news/releases/2002/06/20...
BUSH pushed it right off the edge.
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thegrunt2861 year, 1 month ago
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I heard earlier tonight that the entire bailout system is going to cost Five Trillion dollars before we're through. What a legacy to leave to our kids and grandkids. I don't thin we should bail out those idiots who were too stupid to realize that those 2 and 3 percent adjustable mortgages were going to climb to 8, 9 and 10%, way beyond what they could afford nor those greedy loan officers who saw dollar signs when they talked these people into taking on these loans. Yup greed is alive and well in the good old USA!
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Jeboba1 year, 1 month ago
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Who told you that? Limbaugh? Fox news?
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Bush pushed it off the cliff:
http://www.whitehouse.gov/news/releases/2002/06/20...
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isaw621 year, 1 month ago
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SAVE THE Rock-A-Deli in Salida, Ca! I have been in business for 7 years and dont want to get forced out by osama er obama. 5k is all I need to save the business. Call me 209-545-0667 anything helps 1 dollar ok. SAVE OUR SMALL BUSINESS! Pay pal accepted all donations tax deductable. Isaw62@aol.com. GOD BLESS all that have already donated.
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Jeboba1 year, 1 month ago
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you have been in business for 7 years and havent managed to put away $5,000? You're either a terrible business man or just stupid..or both. Anyone that owns a business knows you have to have a cushion to get you through the rough spots.
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You must have bought one of those houses you couldn't afford! -
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Eagle_Eye1 year, 1 month ago
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"all donations tax deductable"
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that's a lie, every donation is an investment into saving your Deli........but your going to go out of business any way so it would be a total loss. There are going to be so many of these small business's going out of business that there will only be McDonalds left to eat at.
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bkkprbrl1 year, 1 month ago
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The existing lenders on the mortgage loans should work with the original buyers - re-appraise the property and give the owner a new loan based on the realistic appraised value. Also, the counties should re-adjust the property taxes to the new appraised value. This way everyone wins - Mortgage companies get their money at the adjusted amount, and the counties get their property taxes, owner gets to have a home for their family. No one really wins if foreclosure is the only avenue. A bird in the hand is better than two in the bush.
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nostalgia1 year, 1 month ago
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"re-appraise the property and give the owner a new loan based on the realistic appraised value"
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And what do you suggest the banks do about the money they will lose on the re-appraisal? Have the taxpayers pick up the difference??
All that will do is prop up the price of homes
Housing prices are cyclic and always have been
All efforts to prop up home prices are doomed to fail
Why did we get in this mess to begin with - subprime mortgages
Why were subprime mortgages even offered - home prices were too high and most people really couldn't afford to buy
If home prices are propped up by government intervention, who is going to be able to buy homes without "creative" financing?
This housing bubble needs to be totally deflated so middle class people can afford homes without using gimmicks to finance them -
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Jeboba1 year, 1 month ago
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It's not realistic to ask the banks to back the loan down to the current appraised value. The banks didn't create the inflated values in the first place.
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However, the banks should look at the fact that it costs them anywhere from $10,000-$60,000 to foreclose on a house and then they have to dump it at a reduced value. They could factor that in and renegotiate the loan at say, $20,000-$50,000 less than the original note, depending on the current appraised value. They would lose LESS and the homeowner would be able to maintain the mortgage.
Now, what is WRONG with this picture is all of those who have faithfully been paying their mortgage all along. THEY will not get such a break. -
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Eagle_Eye1 year, 1 month ago
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This will only work if they lower the interest amount so that the monthly payment is manageable, other wise, the payment will still exceed the income. A house p ayment should not be more than 35% of your monthly income. Until interest rates are addressed there is no sense in doing any thing.,
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isaw621 year, 1 month ago
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SAVE THE Rock-A-Deli in Salida, Ca! I have been in business for 7 years and dont want to get forced out by osama er obama. 5k is all I need to save the business. Call me 209-545-0667 anything helps 1 dollar ok. SAVE OUR SMALL BUSINESS! Pay pal accepted all donations tax deductable. Isaw62@aol.com. GOD BLESS all that have already donated.
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Jeboba1 year, 1 month ago
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you have been in business for 7 years and havent managed to put away $5,000? You're either a terrible business man or just stupid..or both. Anyone that owns a business knows you have to have a cushion to get you through the rough spots.
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You must have bought one of those houses you couldn't afford!
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just4chickles1 year, 1 month ago
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I agree with normally silent. This sounds to me like, please give me 90 days to figure out what to do. However, as this thread suggests, these are desperate times. I agree with doing something new, however, as so elequently put by thegrunt, do we want to leave trillions of dollars of debt to our children to save our sorry butts?
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ningyo1 year, 1 month ago
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just another socialist giveaway to his non-taxpaying base--another $800 tax credit .ie govt welfare...and what exactly give obama and the govt the right to reach into all those private contracts and change the terms..he wasnt at the table when any of them were signed..i thought you libs didnt like the govt intruding into your personal life..whoever goes bankrupt in this mess should be allowed to fail..that goes for the home buyer who knew he was really a renter , GM , banks..whoever..life will go on and the country in general will emerge more solvent than it was
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nos20011 year, 1 month ago
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this all started with fannie and freddie.. banks were forced to give loans to those who couldnt pay. the banks sold to fannie and freddie.. got dems lots n lots of votes. BARNEY FRANK SHOULD BE IN JAIL. HE AND HIS BOYFRIEND MADE MILLIONS..
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Jeboba1 year, 1 month ago
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One more time for those of you who don't Pay Attention...just drink the right wing koolaid!
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The banks weren't FORCED to do anything. Fannie and Freddie only agreed to buy the mortgages from the banks. Unscrupulous banks, spurred on by George Bush in 2002, http://www.whitehouse.gov/news/releases/2002/06/20... had nothing to lose. They made the loan and immediately sold it to either fannie, freddie, or investment banks like Lehman, etc.
Oh, you didn't mind the little $600/$1200 handout Georgie boy gave you but now a $800 tax credit is a bad idea because it didn't come from the Republicans?
You are truly pathetic.
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Natureboy1 year, 1 month ago
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OK, the moratorium damn sure ISN'T paying off anybody's mortgage.
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But is that a bad idea?
Our government is giving a trillion dollars to an industry which has already demonstrated unrestrainable avarice and mind-boggling irresponsibility - are we going to give them the money with no strings attached?
Dammit, that's a lot of money, it should buy us SOMETHING!!! -
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normallysilent1 year, 1 month ago
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A 90 day moratorium is half a plan. Unless you have the other half of the plan and use the 90 days to initiate it then it is just wasted time and does absolutley nothing to help anyone.
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It's a feel good move. it will take some heat off for a bit and has the appearance to some that you are actually doing something.Unfortunately 90 days is over quick and reality slaps ya right in the face when you realize the only thing which changed is your another 90 days late and basically right where ya were. -
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frctm51 year, 1 month ago
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One factor that is frequently underestimated is how much economic activity is driven by momentum. Some times a moratorium is just what is needed to have the time to respond and turn thing around. That is how FDR saved the banks in America by instating a bank holiday to stop the panic run on banks and it worked. What is needed in times like this is a leader who is willing to set aside principles and react quickly to help restore confidence. I think Obama will follow this course. In times of crisis, no one gets everything they want. No matter what Obama does, some people will be upset with the choices. The bottom line is that we must act aggressively to stem the further decline of unemployment and foreclosure. A ninety day moratorium provides the breathing room to settle on a course of action that has some thought and consideration for its consequences. And even the people who are losing their homes will get some time to figure out what they can do to either keep their homes or make arrangements to find a new place to live. Decisions made under duress are seldom good ones.
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paramale1 year, 1 month ago
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What a welcome idea from what I am sure is going to be our best President ever. Whenever an issue arises, he seeme to think first about how this will help the poor and middle class, then considers the rest. His priorities are completely correct, and its such a difference from the 8 years of preferance for the rich first, then find ways to make the rest of us pay for their perks.
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George Bush and the current Congress should do exactly what Obama wants. After all, he's faced with a great big mess on all fronts, and if he can get started early, the solution will come quicker too. Plus, as lame ducks, the Republicans have no real incentive not to go along with Obama. -
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truevineyard1 year, 1 month ago
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Obama has got the rigtht idea! At first I read that he was proposing a 90 foreclosure freeze on only the lenders to whom the government gave money too.
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But this news here mentions none of that, it sounds like he is going to do a 90 day freeze nationwide! This is an excellent idea to help keep people in their homes.
Obama is going to help the middleclass and the poor! FINALLY a president that actually cares what people are going through!
Thank God for him!
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