Obama's New Housing Plan Will Do Little But Cost Alot

[red states rule]

The latest idea from Pres Obama to help homeowners who are "under water" on their mortgage, will do little to actually solve the problem - but will cost taxpayers big bucks

This reminds me of Obama's "Cash for Clunkers" program

Even CBS News could not paint a smile on this waste of taxpayer money to solve a problem caused by the Feds in the first place


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[fj1200]

It's the FDR plan of action that got us out of the Great Depression. :rolleyes:

"try something, and if it doesn't work try something else."

[red states rule]

It's the FDR plan of action that got us out of the Great Depression. :rolleyes:

"try something, and if it doesn't work try something else."

With the housing mess, the ONLY way to solve it is to allow the process to continue and finish out. Yes, the millons of properties that need to be f/c'd on needs to happen; and only then will the housing market hit bottom - then it will start to recover

But the constant attempts of government to continue to try and keep people in homes they cannot afford will only make a bad situation worse

[fj1200]

With the housing mess, the ONLY way to solve it is to allow the process to continue and finish out. Yes, the millons of properties that need to be f/c'd on needs to happen; and only then will the housing market hit bottom - then it will start to recover

But the constant attempts of government to continue to try and keep people in homes they cannot afford will only make a bad situation worse

I disagree with that partly because the problem would also be solved if HOs had the income to support the loan or if the market would rebound to a point where everyone isn't underwater. A stop-gap plan isn't so bad on its face but the real problem is DC failure to encourage the private sector.

[red states rule]

I disagree with that partly because the problem would also be solved if HOs had the income to support the loan or if the market would rebound to a point where everyone isn't underwater. A stop-gap plan isn't so bad on its face but the real problem is DC failure to encourage the private sector.

FJ, I work in default for a mortgage servicer and I have seen loans go back into default even after the loan was modified and the rate was taken down to 2%

In most cases the loan never should have been given but since the loan was sold to Fanny and Freddie, there was nothing to lose for the company writing the loan. We the taxpayer eat the losses

Hundreds and billions have been given to Fannie and Freddie and the problem is still getting worse

[red states rule]

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