Obama: Ban All Foreclosures Until Government Review

[red states rule]

Why is the government doing this? Why is the government stepping in and telling banks, and investors when they can call in the loan and when they can't?

All this will do is is discourage more loans from being given, and drag the economy down even further







Feb. 25 (Bloomberg) -- The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.

The proposal, reviewed by lenders last week on a White House conference call, “prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed,” according to a Treasury Department document outlining the plan.

“It is one of the many ideas under consideration in the administration’s ongoing housing stabilization efforts,” Treasury spokeswoman Meg Reilly said in an e-mail. “This proposal has not been approved and there are no immediate planned announcements on the issue.”

She confirmed the authenticity of the document, which hasn’t been made public.

At present, lenders can initiate foreclosure proceedings on any loan that hasn’t been submitted for HAMP eligibility. Under current HAMP rules, foreclosure litigation can proceed while borrowers are under review for the program or even in a trial modification.

The proposed changes would prohibit lenders from initiating new foreclosure actions before loan screening by HAMP and would require lenders to halt existing proceedings for borrowers once they are in a trial repayment plan.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahuuwBS8KYq8

[Kathianne]

They want a total collapse of the economy? Seems like.

[red states rule]

They want a total collapse of the economy? Seems like.

It is insane. Day after day I deal with people who are looking for a free house. I can't tell you how many people call in and ask for the "Obama plan"

I am thinking why are we doing this? Why are we trying to keep people in homes they clearly can't afford?

What is so bad about giving up the house and becoming a renter?

[MtnBiker]

Obama should ban the collection of all NSF checks.

[red states rule]

Obama should ban the collection of all NSF checks.

Obama is continuing down the path Dems started under Carter. Owning a home is NOT something you have to work for and earn

Owing a home is a right, and if you can't afford it - someone else via their tax dollars, will finance the purchase for you

[Mr. P]

They want a total collapse of the economy? Seems like.

It sure does look that way.

The reality is a loan can be modified if folks ARE EMPLOYED.
They're putting the cart before the horse here. It ain't gonna work.

Just as a side note...Things are MUCH worse than most realize.
I've seen a large increase lately, about 50%, of folks seeking bankruptcy protection that can't even afford to pay the filing fee (court cost) of $274 or $299. There is NO way these people will be able to make a home loan work, make car payments, utilities, food, auto insurance etc.

[Kathianne]

It sure does look that way.

The reality is a loan can be modified if folks ARE EMPLOYED.
They're putting the cart before the horse here. It ain't gonna work.

Just as a side note...Things are MUCH worse than most realize.
I've seen a large increase lately, about 50%, of folks seeking bankruptcy protection that can't even afford to pay the filing fee (court cost) of $274 or $299. There is NO way these people will be able to make a home loan work, make car payments, utilities, food, auto insurance etc.

I agree, but bet that isn't what a government office would say, at least now.

[Gaffer]

In order for the take over to occur they have to collapse the economy, creating a crisis. Then they step in with total control over everything. It's all part of the communist manifesto. And it's coming here soon.

[KarlMarx]

Let's be honest, shall we? This is what you get when you try to apply affirmative action to the banking industry. The crisis we're in was brought about the idea that mortgages should be awarded not by the person's ability to repay their debt, but by the color of their skin or by their membership in a designated victim group.

So what happened? The banks were "encouraged" by ACORN and other activist groups to make high risk loans (or risk class action law suits). Furthermore, the government made it clear that if a bank did not lend according to its warped sense of logic that the bank would be subjected to a non-stop audit by the Feds.

Risky loans that were awarded based on racial quotas instead of the persons' ability to pay and guaranteed by the government... it was bound to come to this.

The next Congress, I hope, will have the political fortitude to repeal this legislation and reverse these policies. This Congress certainly will not do it. If the policies are not reversed, we are setting ourselves up for another, even worse, financial collapse.

[Binky]

It is insane. Day after day I deal with people who are looking for a free house. I can't tell you how many people call in and ask for the "Obama plan"

I am thinking why are we doing this? Why are we trying to keep people in homes they clearly can't afford?

What is so bad about giving up the house and becoming a renter?


What's ironic is the fact that once they've had to become renters, they will not be able to afford paying high rent either. And after so many months of being late or not paying, a landlord will then go to court to get the tenants evicted. And once they are tossed out, they will either end up on the streets or living in some shit hole where they will still have to pay rent, altho' a lesser amount in a less than desirable area. They will struggle to meet their monthly rent payment as rent as gone thru the roof......

[Binky]

Obama is continuing down the path Dems started under Carter. Owning a home is NOT something you have to work for and earn

Owing a home is a right, and if you can't afford it - someone else via their tax dollars, will finance the purchase for you


And it seems the path he has chosen is one that could come to a dead end at the end of his term. Can America take an additional four years of OB? :eek: I have some serious doubts.

[Binky]

It sure does look that way.

The reality is a loan can be modified if folks ARE EMPLOYED.
They're putting the cart before the horse here. It ain't gonna work.

Just as a side note...Things are MUCH worse than most realize.
I've seen a large increase lately, about 50%, of folks seeking bankruptcy protection that can't even afford to pay the filing fee (court cost) of $274 or $299. There is NO way these people will be able to make a home loan work, make car payments, utilities, food, auto insurance etc.


With the cost of monthly house and rental payments, cars, insurance and all you've mentioned, how do most people afford to live nowdays? It's actually a scary thought to me. It's difficult for a single person without children to live. So how in the world do those with families make it? Housing is over the top and that includes both house payments and rentals.... I can't even imagine what it will be like in a mere 10 years....:eek:

[Binky]

In order for the take over to occur they have to collapse the economy, creating a crisis. Then they step in with total control over everything. It's all part of the communist manifesto. And it's coming here soon.

Well bravo...........someone, other than myself, has FINALLY, come right out and said what I've been saying for the last couple of years. The powers that be have been sneaking around, doing their dasterly deeds to bring America to it's knees. And it's working. With a total economic collaspe, the people will be totally independant on the government for every little thing. Total control over our lives. That's the goal. We will have NO say in the matter. The people will be on bended knee begging the gov't for this and that. We will have no rights left. Kaput. Adious. So long. They will just up and disappear.......leaving the people wondering what the hell happened......:eek:

[Mr. P]

With the cost of monthly house and rental payments, cars, insurance and all you've mentioned, how do most people afford to live nowdays? It's actually a scary thought to me. It's difficult for a single person without children to live. So how in the world do those with families make it? Housing is over the top and that includes both house payments and rentals.... I can't even imagine what it will be like in a mere 10 years....:eek:

Many are living with family.

[avatar4321]

May as well just ban banks from lendering money to people. It will have similiar results.

[Missileman]

May as well just ban banks from lendering money to people. It will have similiar results.

They want to force insurance companies to take in hundreds of dollars in payment in exchange for hundreds of thousands of dollars in benefits for people with pre-existing conditions. Inability to pay a mortgage is a pre-existing condition for a lot of folks too.

[Joyful HoneyBee]

A very wise man I know has said:


If you continue to think the way you have always thought, you will continue to get what you have always got!

A government big enough to provide you everything you need is big enough to take everything you have!

How interesting that he was right all along though some have argued against his politics.

[sgtdmski]

Why change???? The government wants more home ownership. No Job. No Money. No Problem!!!!!!

Why change it now, who cares that this same policy cause a market collapse, who cares that the so-called gov't backed loans are worthless and caused the banking crisis. Let us continue to allow ACORN to get homes for Pimps!!!!!!

dmk

[red states rule]

They want to force insurance companies to take in hundreds of dollars in payment in exchange for hundreds of thousands of dollars in benefits for people with pre-existing conditions. Inability to pay a mortgage is a pre-existing condition for a lot of folks too.

Now the libs womder why banks are NOT lending money after the left savages them for wanting to enforce the terms of the loan - and now wants to tell banks when they can or cannot enfore the terms the borrower agreeded to

It is there anyone out there who would lend money under these conditions?

[red states rule]

Why change???? The government wants more home ownership. No Job. No Money. No Problem!!!!!!

Why change it now, who cares that this same policy cause a market collapse, who cares that the so-called gov't backed loans are worthless and caused the banking crisis. Let us continue to allow ACORN to get homes for Pimps!!!!!!

dmk

No job? No money? Reminds me of Barney Frank

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