A bank owned sign is seen in front of a foreclosed home on October 13, 2011 in Miami, Florida.
October 24th, 2011
11:23 AM ET
11 years ago
Help for 'responsible' underwater homeowners
(CNN) - The Obama administration's latest attempt to help the housing market targets homeowners whose credit is solid, who are up to date on their mortgage payments, but can't refinance because they own homes in areas where the market has plummeted and their homes are underwater.
So President Barack Obama is announcing his plan in Nevada, a key state the president must win in 2012 where the bottom has fallen out of the housing market. Since the peak of the housing market home prices have fallen 53%. In the Vegas metro area they fell by 59%. This official said there's been virtually no refinancing activity for underwater borrowers in the area and the plan is designed to change that dynamic.
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If it was up to republicans, anyone not making a million or more, would be living in a cardboard box.
Lets stop the blame game and see the truth. It isn't Obamas fault or Bushs fault it is our fault. We the citizens have not been involved for over 20 years. Vote I don't care who you vote for but vote. Last. Election under 25 percent voted. Democracies do not work when we are not engaged.
EdLatey – I asked myself who is going to pay? It seems to me, the borrwer is going to pay. Why is it you think you are going to pay? The borrower simply owes more than the hous eis worth – same as they do now. This program sounds like it would simply lower their rate. I don't get your problem.... how does that cost you anything? Are you saying that because they now have a lower payment, there is more risk of a foreclosure? You seem confused and angry....
Key word: 'Responsible'. What would the better option be – 1) To let those continuing to pay down an underwater mortgage loan in economically voided regions until they HAVE to file for bankruptcy, ultimately depressing the region's market values further, or 2) Restructuring the loans of people with proven good credit, so they can continue to pay down the loans, ensuring higher market values for everybody within the region.
Seems to me that many of the posters here aren't at least taking into account the overall economic effects of preserving market values.
I bought my house in 1991 for an appraised value of $31,500. Ten years later, it was appraised at $58,000. The only improvements I did was new exterior doors and reshingle the roof. There is now realistic way the value of the house increased that much. This was all a racket by the banks to make money out of thin air. By the time the bottom fell out, the county reappraised my house for property taxes at $68,000 and taxed me accordingly. I have the smallest and oldest house in the neighborhood. The real estate company down the road from me now says the neighborhood average is now $33,200 from $87,000. I didn't refi when I thought about it before and I'm glad. My house payment is $465 a month up from $395 a month because of the artificially inflated taxes. These financiers should be strung up publically.
"How can you have good credit when your house is under water?"
Dude, if you don't know the answer to that question, you really have no business posting here. Go back to your mommy and let the adults finish their conversation.
Nice to see we can always count on Democrat Class Warfare for a daily dose of extreme right wing ignorance. Psst., buddy, try looking at deregulated/under-regulated Wall Street if you want to know how the economy tanked. It was an inside job that had nothing to do with Frank, Freddie or Fannnie.
Dear Tax The Left: Please stop posting lies and propaganda. There is no evidence of any blame on Clinton, other than his horribly mistaken signing of the Glass-Steagall repeal. If that's not what you were talking about then you need to educate yourself. There have been numerous studies about the meltdown and it was an inside job cooked up on Walll Street, not in DC. CRA had nothing to do with it.
Many of homeowners really do need help because they found themselves victims of financial greed.
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I agree! They were victims OF THEIR OWN financial greed. Or maybe they bought at the peak of prices? Oh well, that is THEIR problem, not mine or the governments. There are processes in place to deal with the problem. It is NOT the job of government to ensure everybody makes money on their home INVESTMENT. Investments DO go down but it appears there are fools that believe othrwise.