Obama Housing Plans: LTV without limits for ‘hardship’ cases only…rest of refis still hit 105% LTV max…
aww man! the LTV uncapped limits ONLY APPLY TO THE FIRST HALF OF THE PLAN, the one for those who prove ‘hardship’
The refis for the rest of Americans are STILL LIMITED TO 105% LTV ratios…since CA AZ NV FL have lost about 40% of their LTV ratios that pretty much leaves out MOST of the homeowners under water…the good news is if you lose everything they will help you, if you are working and struggling to hang on,…not so much….
So if you bought a McMansion in AZ with a no doc loan that is underwater $100,000 and your ARM is going to adjust Uncle Sam will bail you out. If OTOH you were ‘good’ in your 30 yr fixed and your LTV has fallen off a cliff BECAUSE of the irresponsible yahoos who bought the McMansions you are SOL…..(caveat, since appraisals are not required under these refis with FAN FRED for the non hardship program, you MAY still be able to get refi’d to current rates without being disqualified by being so far underwater)
Diana Olick reports hilights
Hold on and keep your fingers crossed, it;s going to be a bumpy ride :0)
For millions of troubled homeowners, help may finally be on the way. On March 4 the U.S. Treasury Dept. is expected to begin implementing the Obama Administration’s $75 billion, Homeowner Affordability and Stability Plan.
The biggest change is the introduction of a simple formula for calculating monthly payments…..Under the new program, mortgages will be restructured so that home payments account for no more than 31% of the borrower’s monthly income. All debt payments, including car loans and credit cards, will be no more than 55% of pre-tax income.
Under the current plan, borrowers will not have to be late in their payments to qualify for a loan modification. Borrowers who are “underwater,” i.e. they owe more than their house is worth, will also be allowed to refinance so long as their first mortgage does not exceed 105% of their home’s value. Previously only borrowers with at least 20% equity in their homes could refinance. The real estate Web site Zillow.com estimates that only about 25%—or 14 million borrowers—have home values high enough to support refinancing under the new program terms….
The Obama plan will not address all homeowners in trouble. Only loans insured or owned by Fannie Mae and Freddie Mac will be part of the program. Borrowers can call their lender and find out if that is the case with their loan. Many borrowers unlikely to benefit are those who took out “jumbo” loans when the old limit was $417,000 as well as those with poor credit who took out toxic subprime loans which Fannie and Freddie did not insure. The government-run Web site, financialstability.gov, will have more information about the program.
…The Treasury is also expected to unveil a formula that will help lenders decide if it makes sense to foreclose on the property or work out some kind of modification with borrowers. The formula will be based on the net present value of the home, with discounts applied to the expected loss a bank would take in a foreclosure.
Awesome, national movement the people are speaking, YAY AMERICA!!! WOOHOO! 2010 baby midterm elections, let’s get some BALANCE :0)
Several thousand neopatriots – some shouting “Give me liberty or give me death!” – took to the streets in over 30 US cities Friday, representing what some of them call the beginning of a new conservative counterculture in America.
“The spark has been lit,” says Ben Mihalski, a “house husband” from Cobb County, Ga., one of at least 300 protesters who gathered in a hefty downpour outside the Georgia Capitol on Friday to protest what they see as profligate spending by Washington.
Protesters with sign-slogans like “Pillage and plunder: At least the Vikings did it openly” fanned out across capitols and courthouses in cities from Nashville, Tenn., to Los Angeles, objecting to bailouts and policy changes since the inauguration of President Obama.
The Tea Party USA movement also added some symbolic flourish, vowing to gather tens of thousands of tea bags to be dumped on the floor of the US Congress. In Atlanta, the brand was Luzianne.
Photos from MM, please go see all the pics and video at her site!
But the largely grassroots show of force hints at a sharpening thorn for Democrats and a potential powder keg that could threaten to blow ahead of the 2010 congressional elections.
“It’s worth remembering that the rise of the New Right and the Christian Right, one after the other, were both spurred by tax issues, the whole idea of paying for things they don’t believe in,” says sociologist Eugenia Deerman at Eastern Illinois University in Charleston who studies conservative social movements.
Only in America Baby! How amazing is it that despite all our diversity, we have a tight cohesive bond based on our very own, very clear , very certain sense of what is and what is not the American Way. We KNOW who we are and we LOVE who we are, unlike some of our political representatives sad to say.
Clearly we gave not forgotten who we are despite what some may say…
And we are passionate in our belief in America and our ability to be self sufficient and entrepeneurial and overcome ANY obstacle. We THRIVE on challenge. We do not want handouts or bailouts or a new system of governance or ideology or cultural collective and subservience to some politician’s idea of a ‘greater good’. Millions of us do have that belief and we live it in our daily lives and our faith, whatever it may be, and we do NOT want the government putting their big feet into our American Way of Life. /editorial off :0)
Memo to Team Obama: When TIME agrees with Rick Santelli you are losing the argument….Tea Party Update
…The only people affected by plummeting real estate prices are the ones who bought a house that cost more than they could afford, hoping for a spike in value so they could sell at a profit or take out a new loan based on an increased value. Their home wasn’t just a place to live; it was an investment they thought they could liquefy at will. If we’re saving these poor souls from the 26.7% drop in their investment, we should give twice as much aid to everyone who has lost approximately 50% in the stock market since its peak. Especially those in Vanguard’s Tax-Managed Capital Appreciation Fund.
Meanwhile, mortgages held by the responsible people Obama says he is trying to help only go into foreclosure when the owners lose their jobs. But the best way to help them is through increased unemployment benefits and job creation. In fact, James Lockhart, who regulates Fannie Mae and Freddie Mac, says he hopes this backward plan keeps at best 40% of the people it dishes out money to from redefaulting on their mortgage. The only plan worth pursuing that works at best 40% of the time is hitting a baseball. I would love to yell that in front of the traders at the Chicago Board of Trade. I would also like to yell at them to get computers like everyone else so they can stop executing trades by waving their hands like idiots.
Much as it pains me, housing prices need to come down a lot more for the sake of the country. It’s not that the housing market has suddenly gotten sick and needs medicine. It was sick, and it’s getting better. Just like $4 gas, Pets.com and Jim Carrey’s career, we are undergoing a needed correction. So I want in on the Chicago tea party that Santelli, in his rant, promised to organize, only I’m hoping it isn’t in Chicago and is more of a cocktail/wine thing or maybe just a Facebook group. But I’m with him on standing back and letting the housing market lose some of its vaulted ceilings, guarded gates and Argentine Balmoral granite tops. It’s not going to be a pretty few years. So let’s save our government money for things we need. Like high-definition television converters.
Tea Party Update from MM:
A reminder of the main resources for activists looking to join:
Update 2: MM has a column with updates on the Baltimore ACORN B & E and the woman they say they were ‘saving’ from foreclosure, check it out!
UPDATE courtesy of Jeff779997
Rick Santelli interviewed by Sean Hannity after he’s attacked by the White House for suggesting a Chicago Tea Party to protest the Mortgage Bailout
Disclaimer: MiM is in Phoenix and has taken a huge hit in equity thanks to flippers and banks who couldn’t underwrite their way out of a wet paper bag….yes we are hurting, a HOLC would help EVERYONE EQUALLY, and we frakkin OWN Fannie and Freddie already, but we do not like the Obama Plan which is NOT HOLC, it will NOT differentiate between those who LIED and OBFUSCATED through NO DOC -NO INCOME VERIFICATION loans from those who are RESPONSIBLE, a word POTUS used last night but whose plans don’t seem to grasp that concept..
Here is a smattering of sob stories from ACORN which has gone to several states in their quest to keep people in homes they simply cannot afford, while the taxpayers pay for it..here’s an idea! RENT folks!
If a lender LIED to this woman which they would have to do, she signed a paper at closing that SHOWS YOU if you are adjustable or not ..how do you not see that?? This is from a youtube channel dedicated to helping handout taxpayer money to those who took loans they COULD NOT AND CAN NOT AFFORD, it is just ridiculous..