"The Obama administration on Wednesday launched a $75 billion mortgage modification program aimed at preventing home foreclosures for single-unit home loans up to $729,750.
Unveiling more details of the program, the U.S. Treasury said borrowers would be required to demonstrate financial hardship to their loan servicers, such as a job loss or an imminent payment increase that cannot be met."
Ok where to start with this insanity:
- $729k!!! WTF really?! We are helping people in $700k homes?!
- How exactly do you demonstrate a "financial hardship"?
- Imminent payment increase?
Guess what fockers?! If and when my payment goes up I'm going to pay it because I can afford it becuase I live in an affordable house.... not a house that is $700k!!
I honestly wouldn't have a problem with this Obama plan if it weren't for the $700k ceiling. Look, a family of 5 that lives in a $200k home and has a layoff of the main income earner probably could use a helping hand, I get that. I'm not happy about it, but I get it.
But anyone who has risky interest-only loans, balloon mortgage, sub-prime loan on anything over $300k can go fock themselves. You made a bad investment and you obviously can't pay your bills, screw you.
Here is a better idea:
Let's take all the responsible people, who live in affordable houses who can pay their mortgages but are underwater in their house. If you put a responsible 5% down on your home and over the past year found you home value decrease by more than 5% through no fault of your own, you should be able to renegotiate the loan with the bank since the bank got bailed out.
That would in effect give responsible people a tax break, a handout, a "gee thanks for not helping to destory our economy"
Then lets look at anyone who has been laid off and lives in an average priced home (I believe the US average is $191k) so lets say $150-$249k ... if we are going to give anyone a break let's start here.
I bought a $400,000 house with an interest only variable rate loan from Money Tree.
ReplyDeleteI thought I would be able to afford it selling subscriptions to Vibe magazine, but people stopped buying so many.
Obama, please protect my god given right to home ownership!
This one I really agree with. The 700k figure is just another example of how out of touch politicians are with the average American family, income, and standard of living.
ReplyDeleteAnd how does $700k mortgage bailout mesh with increased taxation on people who make $250k+ a year?
ReplyDeleteHere is how:
People who own $700k homes and can't pay their mortgage = irresponsible
People who make $250k+ and can pay their bills = responsible
And heaven forbid you make $250k and own a $750k house and pay your bills and have a job!
So basically if you are hood rich you get a bailout, if you are upper-middle class you are focked. (now that was racist haha)
So Obama, what if I'm underwater on my rim payments? Where is the cut off? at 22" or 24" ?
"Financial hardship"...
ReplyDeleteAre you really under financial hardship when you overextend yourself by buying a brand new home, new car, and take out an interest only loan?
This is another example of Obama's war on the economy.
ReplyDeleteRemember how I told you about my coworker who had his wife quit her job so their income would be low enough to qualify for assistance in buying a home?
How many people now do you think will work less, quit their jobs, stop paying their bills, and so forth, in order to qualify for this bailout?
This is the opposite of stimulus. This is the discouragement of economic activity.
Higher taxes for corporations and rich people = fewer jobs
Rewards for not making money = fewer people trying to make money
Higher capital gains taxes and discouraging investment at every opportunity = fewer people investing in our economy
Fewer people investing = more reliance on governmental assistance and fewer jobs
Fewer jobs = less economic activity = more reliance on government = fewer people trying to make money
It's this backasswards cycle that makes no sense to anyone except for Obama and his worshipers.
It has been one of Obama's highest priorities to make Americans hate corporations, Wall Street, business owners, etc. I actually heard one of his worshipers on the radio on Sunday say that he wishes everyone making over $250K a year would leave the country because it would be a better place. That's the most idiotic thing I've ever heard. And that's the popular opinion right now thanks to Obama's war on achievement.
Instead of hating corporations, why don't you get a job at one and pay yo damn bills so you don't freeze yo ass off.
I heard a guy give an intelligent (albeit wrong) case for why someone who makes $10 million should pay $9 million in taxes. ... $100million... yep $99 million in taxes.
ReplyDeleteBased solely on the argument that no one "needs" that much money...
... and that, my friends, is Socialism.
See Ayn Rand quote at the bottom of the blog.
Someone who "makes" $10million dollars is a lot different than someone who "steals" $10 million dollars. And by "steal" I mean tax rebates to people who dont pay taxes, bailouts and rewards for the destruction of wealth.
Destruction of wealth is what Obama is doing.