Mortgage Bailout!

[humandraydel]

Is no one else absolutely INCENSED by the bill Congress is trying to pass?

NEW YORK (CNNMoney.com) -- The House on Wednesday began debate on a housing package that would let the government back loans for homeowners at risk of foreclosure - a move many Republicans have opposed and which the White House has threatened to veto.

The centerpiece of the package is a proposal to let the Federal Housing Administration (FHA) insure up to $300 billion in new loans over four years if lenders agree to reduce the mortgage principal.

To qualify, the lender would have to cut the debt to no more than 85% of a home's appraised value. If the FHA-refinanced loans went into default, the FHA would pay the lender the remaining principal owed.


So, if this bill is passed the riskiest borrowers will have the potential to have a FREE 15% down payment!! And actually, it is MORE than that, considering that it is a reduction from an already reduced appraisal value. Personally, I vow to find out who votes for this and I will NEVER vote for them!

[aida2003]

Yes, it does make me angry . My guess is that if Dems win on this bill, then the next president will be a Dem, for sure.
In the past, I considered myself a Democrat (though I have no right to vote in the US). By now, I think I've lost faith in them and I don't like their ideas especially helping people who made stupid mistakes and cannot take responsibility for them.

[billy1980]

Thanks for the info, this is absolutly absurd and seems so unfair on many others. The Demo's cannot let this pass surely?

[sweeps]

Alternative point of view... By preventing foreclosures and propping up housing values, all homeowners benefit because their home values will go up as well. In other words, it's a stimulus package paid to you in home equity rather than cash.

[SnoopyCool]

Historian Edward Gibbon studied the fall of the Roman civilization and had this for the second main cause:
2. The weakening of a sense of individual responsibility.

BTW, 3 was excessive taxes and government control and intervention

"The Decline and Fall of the Roman Empire"

[project15]

I was rooting for the one that would give buyers of foreclosures a $7k tax credit since I'll be closing on a foreclosure hopefully soon and fixing it up.