Bush to bail out homeowners!

More on the Republican's Mortgage Welfare Initiative:

"He also outlined steps to modernize the Federal Housing Administration, allow homeowners to refinance into FHA-insured mortgages with lower rates, temporarily reform a key housing provision of the federal tax code and launch a new "foreclosure avoidance initiative."

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/31/AR2007083100778.html?hpid=topnews

This plan just seems stupid to me on its face. Bush says that people with good credit can refinance to FHA backed loans.

If you have good credit can't you refinance traditionally through a bank?

He's saying that the federal gov't should take on these liablities if these people default?

This is brilliant idea. The people that are in trouble are the ones that bought when their homes were over valued and now he want's the feds to insure those loans knowing the prices are dropping?

And also if you're in a sub-prime loan situation, don't you by definition don't have ideal or particularly good credit?
 
LadyT said:
More on the Republican's Mortgage Welfare Initiative:

"He also outlined steps to modernize the Federal Housing Administration, allow homeowners to refinance into FHA-insured mortgages with lower rates, temporarily reform a key housing provision of the federal tax code and launch a new "foreclosure avoidance initiative."

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/31/AR2007083100778.html?hpid=topnews

This plan just seems stupid to me on its face. Bush says that people with good credit can refinance to FHA backed loans.

If you have good credit can't you refinance traditionally through a bank?

He's saying that the federal gov't should take on these liablities if these people default?

This is brilliant idea. The people that are in trouble are the ones that bought when their homes were over valued and now he want's the feds to insure those loans knowing the prices are dropping?

And also if you're in a sub-prime loan situation, don't you by definition don't have ideal or particularly good credit?
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The only example I can think of is one Jarod brought up the other day. If someone with good credit bought more home than they could afford and has seen the value of the home decline to where their equity is no longer 20%, then they would likely not be able to re-fi, unless they were able to bring up their equity with a cash infusion.

To address another point, this initiative is not directed at only sub-prime loans. It is designed to bail out all the idiots... even the ones that have good credit, but overbought on their homes.
 
Of course it's worng.
But he bailed ou the banks to the tune of a few billion.
Bailing out a few thousand little just will be a drop in the bucket in comparrison.:shock:
 
Superfreak said:
The only example I can think of is one Jarod brought up the other day. If someone with good credit bought more home than they could afford and has seen the value of the home decline to where their equity is no longer 20%, then they would likely not be able to re-fi, unless they were able to bring up their equity with a cash infusion.

To address another point, this initiative is not directed at only sub-prime loans. It is designed to bail out all the idiots... even the ones that have good credit, but overbought on their homes.
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Which is foolish, IMO. You cannot learn from your mistakes if Mommy Government will save you every single time you make one. Just another example of "Not a Conservative" from Bush.
 
The thing I find most aggrevating by some of these loans is that some still have pre-payment penalties. That should be illegal, individuals should be able to pay off their debt at will.
 
Damocles said:
Which is foolish, IMO. You cannot learn from your mistakes if Mommy Government will save you every single time you make one. Just another example of "Not a Conservative" from Bush.
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Without question. I agree completely. There is nothing conservative about Bush's economic policy.
 
Superfreak said:
The only example I can think of is one Jarod brought up the other day. If someone with good credit bought more home than they could afford and has seen the value of the home decline to where their equity is no longer 20%, then they would likely not be able to re-fi, unless they were able to bring up their equity with a cash infusion.

To address another point, this initiative is not directed at only sub-prime loans. It is designed to bail out all the idiots... even the ones that have good credit, but overbought on their homes.
Click to expand...

To your first point: If they are able to come up with a cash infusion to make up the difference.......I think you can fill in the blank.

To your second......you've highlighted my point. We're bailing out every.
 
LadyT said:
To your first point: If they are able to come up with a cash infusion to make up the difference.......I think you can fill in the blank.

To your second......you've highlighted my point. We're bailing out every.
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I agreed with your point, was just trying to demonstrate a situation where they may have good credit but the FHA would be the only way to refi.
 
Damocles said:
Which is foolish, IMO. You cannot learn from your mistakes if Mommy Government will save you every single time you make one. Just another example of "Not a Conservative" from Bush.
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Well, I kind of agree with RString (hell has frozen over) I don't think its a matter of "teaching people a lesson". The gov't shouldn't be in the business of enacting or not enacting policies to "teach us lessons". For me its a matter of restoring the market and getting housing back to affordable prices. I support going after predatory lenders that have lied and misrepresented their loans, but the feds taking on any risk associated with this mess isn't cool in my book.

Additional bitch session:
I've looked at several new homes in my area and I've concluded that part of the problem is that everyone thinks their freakin' Donald Trump. People are taking the most god forsaken pieces of land and sticking houses on them and stupid fucktards were paying for them. I went to see one during lunch that was literally a stone's throw away from the NJ Turnpike where its an ovepass. 4Br 2.5 bath - $500K for that piece of shit that was amongst older homes next to the an overpass of the NJ turnpike.
 
LadyT said:
Well, I kind of agree with RString (hell has frozen over) I don't think its a matter of "teaching people a lesson". The gov't shouldn't be in the business of enacting or not enacting policies to "teach us lessons". For me its a matter of restoring the market and getting housing back to affordable prices. I support going after predatory lenders that have lied and misrepresented their loans, but the feds taking on any risk associated with this mess isn't cool in my book.

Additional bitch session:
I've looked at several new homes in my area and I've concluded that part of the problem is that everyone thinks their freakin' Donald Trump. People are taking the most god forsaken pieces of land and sticking houses on them and stupid fucktards were paying for them. I went to see one during lunch that was literally a stone's throw away from the NJ Turnpike where its an ovepass. 4Br 2.5 bath - $500K for that piece of shit that was amongst older homes next to the an overpass of the NJ turnpike.
Click to expand...
A lot of people move where houses cost less, ever consider it?
 
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