President Bush drops opposition to housing bill

[Frogge]

I caught a spot on Today show this morning.. they gave 2 examples of people that will and will not get help. Financial analyst says basically, out of 3,000,000 people, about 10% maybe 20% will benefit from this bill.

First example = single mom w/adjustable mortgage, going to 12% interest in Oct.. not much other debt. Working 70 hours/week, pays as agreed on mortgage. Under new law, she will pay 90% of house value at a fixed rate. When she sells the house, she has to share profits with the government.

Second example = family of 4, both working full time, $50,000 upside down on mortgage, substantial credit card debt and car loans. They will not qualify because of their financial situation.

Bottom line, if you are in financial distress, you most likely will not get help under the plan. Lenders have to agree to take a loss on the mortgage and most will be reluctant to do it.

[banca rotta]

I caught a spot on Today show this morning.. they gave 2 examples of people that will and will not get help. Financial analyst says basically, out of 3,000,000 people, about 10% maybe 20% will benefit from this bill.

First example = single mom w/adjustable mortgage, going to 12% interest in Oct.. not much other debt. Working 70 hours/week, pays as agreed on mortgage. Under new law, she will pay 90% of house value at a fixed rate. When she sells the house, she has to share profits with the government.

Second example = family of 4, both working full time, $50,000 upside down on mortgage, substantial credit card debt and car loans. They will not qualify because of their financial situation.

Bottom line, if you are in financial distress, you most likely will not get help under the plan. Lenders have to agree to take a loss on the mortgage and most will be reluctant to do it.

Tax payers have rights too.

Thanks for the post frog!

[newbeginning]

If in the end this bill turns out to help a few and bolster the corporations instead, should be no surprise...

As someone mentioned earlier, it must be nice to be an indispensable corporation with "friends" to help bail them out when they get into financial difficulties and continue to pay executives millions in bonuses, etc. even when they've clearly failed in their charge.

Corruption, folks, corruption...

We are seeing the ugly head of decades of greed and lack of "long-term" concern for this nation. Our politicians, predominantly wealthy and influenced by the need to perpetuate unbridled capitalism at any cost, have given us mind-boggling national deficits (which can only be erased if the nations we owe just decided to forgive us of it), inexplicable spiraling health costs, slowly uncompetitive working force, and declining and stressed middle-class, among other things...

...in the end, the "people" were and have been and continue to be duped and enticed by myopic ideas of wealth and prosperity w/o any cost. Encouraged to divisiveness politically, socially, religiously, etc. Why? Divide and conquer... or, rather, divide and ignore, lie, make deals behind close doors at our expense, make decisions about our young men and women to go to war when most of the politicians themselves have never served in the military or have family in the military...

Disgusting...

[Stilltheone]

I caught a spot on Today show this morning.. they gave 2 examples of people that will and will not get help. Financial analyst says basically, out of 3,000,000 people, about 10% maybe 20% will benefit from this bill.

First example = single mom w/adjustable mortgage, going to 12% interest in Oct.. not much other debt. Working 70 hours/week, pays as agreed on mortgage. Under new law, she will pay 90% of house value at a fixed rate. When she sells the house, she has to share profits with the government.

Second example = family of 4, both working full time, $50,000 upside down on mortgage, substantial credit card debt and car loans. They will not qualify because of their financial situation.

Bottom line, if you are in financial distress, you most likely will not get help under the plan. Lenders have to agree to take a loss on the mortgage and most will be reluctant to do it.

I wonder how it works for someone that filed bankruptcy. If you've never missed a payment, but are now debt free because of bankruptcy, I wonder if you would "qualify"...

Thanks for posting this! Very interesting!

[Stilltheone]

I caught a spot on Today show this morning.. they gave 2 examples of people that will and will not get help. Financial analyst says basically, out of 3,000,000 people, about 10% maybe 20% will benefit from this bill.

First example = single mom w/adjustable mortgage, going to 12% interest in Oct.. not much other debt. Working 70 hours/week, pays as agreed on mortgage. Under new law, she will pay 90% of house value at a fixed rate. When she sells the house, she has to share profits with the government.

Second example = family of 4, both working full time, $50,000 upside down on mortgage, substantial credit card debt and car loans. They will not qualify because of their financial situation.

Bottom line, if you are in financial distress, you most likely will not get help under the plan. Lenders have to agree to take a loss on the mortgage and most will be reluctant to do it.

According to USA Today:

http://www.usatoday.com/money/economy/housing/2008-07-26-housing-bailout-bill_N.htm

The bill would help an estimated 400,000 homeowners avoid foreclosure by allowing them to refinance into lower-cost mortgages insured by the Federal Housing Administration. To qualify, borrowers must have a relatively high level of debt to income, use their homes as primary residences and agree to share any profits from any eventual resale with the government. And the lenders must agree to write down the loan principals.

[shabam]

I agree with helping people out but not if it means bailing someone out who bought a $650K home and can no longer afford it. Especially not for anyone who bought a home to flip it for a quick buck. That was an investment so the investor should bear the loss.

If someone bought a $500k home on a $40k salary with zero down then they too should not receive any assistance. They knew what they were doing.

The assistance should only be there for people/families who did everything by the book and are now in trouble. For the rest, you live an learn. Much the same way people with unsecured debt are doing so. When you play with fire, you are eventually going to get burnt.