Feds move to streamline aid process for homeowners

[GeorgeD]

I kind of like the idea of helping out distressed homeowners rather than financial firms, but is it really fair to help someone who mortaged their house for too much (90%+ of value) and for more than they could afford so they got got three months behind on their mortgage?

I'd feel a little better if there was a criteria like lost job or illness, but why should we bail out people who were financially irresponsible? Besides that if they change the terms so they pay 38% of their income on the mortgage, how many will keep up?

Maybe I should have have refinanced my house for a bankroll and waited for the government to bail me out.


Associated Press
Feds move to streamline aid process for homeowners
By ALAN ZIBEL 11.11.08, 2:13 PM ET


WASHINGTON -

The government and the mortgage industry are launching the most sweeping effort yet to help troubled homeowners by speeding up the process for renegotiating hundreds of thousands of delinquent loans held by Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency, which seized control of the two mortgage finance companies in September, announced the plan Tuesday along with officials from the Treasury Department, Wells Fargo & Co., the Department of Housing and Urban Development and Hope Now, an alliance of mortgage companies organized by the Bush administration last year.

http://www.forbes.com/topstories/fee...ap5678836.html

[aslan]

Originally Posted by GeorgeD

I kind of like the idea of helping out distressed homeowners rather than financial firms, but is it really fair to help someone who mortaged their house for too much (90%+ of value) and for more than they could afford so they got got three months behind on their mortgage?

I'd feel a little better if there was a criteria like lost job or illness, but why should we bail out people who were financially irresponsible? Besides that if they change the terms so they pay 38% of their income on the mortgage, how many will keep up?

Maybe I should have have refinanced my house for a bankroll and waited for the government to bail me out.


Associated Press
Feds move to streamline aid process for homeowners
By ALAN ZIBEL 11.11.08, 2:13 PM ET


WASHINGTON -

The government and the mortgage industry are launching the most sweeping effort yet to help troubled homeowners by speeding up the process for renegotiating hundreds of thousands of delinquent loans held by Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency, which seized control of the two mortgage finance companies in September, announced the plan Tuesday along with officials from the Treasury Department, Wells Fargo & Co., the Department of Housing and Urban Development and Hope Now, an alliance of mortgage companies organized by the Bush administration last year.

http://www.forbes.com/topstories/fee...ap5678836.html

Right. And supposing some were honestly hoodwinked, how will the government distinguish between those who "deserve" a bailout, and those who are simply irresponsible or greedy?

[Brutus]

oh boy.

the housing market is still overvalued, and the govt is going to bailout both sides?

its simple economics. average guy saves down payment for a few years, buys average house. people are getting layed off left and right, how many less can afford these huge prices?

the market should be allowed to cool to an uninflated price, at no expense to the federal govt.

[zengrifter]

Originally Posted by aslan

Right. And supposing some were honestly hoodwinked, how will the government distinguish between those who "deserve" a bailout, and those who are simply irresponsible or greedy?

Hopefully they will be no more discerning than with Wall Street. zg

[aslan]

Originally Posted by zengrifter

Hopefully they will be no more discerning than with Wall Street. zg

Thus spaketh zg: Two wrongs make a right.

[zengrifter]

Originally Posted by Brutus

oh boy.

the housing market is still overvalued, and the govt is going to bailout both sides?

Worth a try! Balanced and fair! zg