Update 2: Middle Class Home Values Free Fallin’, but Team Obama will NOT urge banks to reduce principal…Obama Plan calls for taxpayer subsidized payment assistance, via hardship & means testing…

Update 2: The housing plan will be announced by POTUS, Geithner and HUD’s Shaun Donovan in Mesa tomorrow at 10:30am MST..we will cover it!

Update: Hey you know what just occurred to me? By adding subsidies and focusing on the payment not the principal, Obama and the Banks are putting the TAXPAYERS on the hook for these subsidies where we should have had the banks taking a loss on the principal writedowns..niiiiiceee,,,great move Team O, or Team Zero which is how it is starting to look…….paging Joe Biden and his Middle Class Task Force……..please report to Phoenix Wednesday to represent American Middle Class Taxpayers and Homeowners….

_____________

THEY JUST DO NOT GET IT!! and we are going to keep free falling in housing values..

It appears they are going to implement the FAILING plan that the FDIC already tried with IndyMac, extending the length of the loan, adding principal on forbearance to the end of the loan, but adding a subsidy for monthly payments with means testing ….effectively leaving out all those middle class homeowners underwater who still have a job….

REPEAT-THIS DID NOT WORK!! Office of Thrift Supervision has ALREADY told us 40% of those modified loans REDEFAULTED WITHIN 6 MONTHS

Know why? BECAUSE THE BANKS DIDNT REDUCE THE PRINCIPAL!!! That is what Sheila Bair of the FDIC has already acknowledged!!!

I KNEW Hillary and MAC were to the left of Obama on housing but this is frakkin ridiculous!!!

We are 4 years into the housing bubble now, 2 years in a devaluation freefall and Team Obama will STILL NOT MAKE THE BANKS WRITE DOWN PRINCIPAL

This means the middle class is FRAKKED TOTALLY FRAKKED, this plan won’t help you if you are still on your feet and it wont let Americans refi at 4% which EVEN THE GOP CONGRESS CRITTERS PROPOSED DOING!!

TEAM OBAMA IS TO THE RIGHT OF THE FRAKKIN GOP ON THE HOUSING CRISIS, ARRRRRRGGGGLLLE!!

Well buy gold peeps, the ride is getting even more bumpy it would seem..

From Bloomberg today:

The White House is willing to spend more than the $50 billion already pledged to stem home foreclosures and intends to focus its efforts on reducing monthly mortgage payments, rather than principal, said Lawrence Summers, the president’s top economic adviser.

“We’re prepared to do what is necessary,” Summers said in an interview on Bloomberg Television’s “Political Capital with Al Hunt” yesterday. “Going directly at the problem means addressing affordability by addressing payments.”

No jackass!  Affordability is addressed at the level of PRINCIPAL, what a bunch of maroons, playing nice with banks that have billions in our tax dollars, I don’t give a flying frak what they get paid as the CEO, make them write down principal and share the hits the homeowners and taxpayers are taking ARRRGGGLE

There is not a progressive bone in all of TEAM OBAMA, I want my Hillary and my HOLC dammit! EVEN THE FEDERAL RESERVE SAYS THE BANKS NEED TO WRITE DOWN THE PRINCIPAL, WHY ISN’T TEAM OBAMA DOING THE RIGHT THING?? IS FRIENDSHIP WITH JAMIE DIMON MORE IMPORTANT THAN AMERICAN HOMEOWNERS SECURITY????

Home foreclosures in the U.S. surged 81 percent last year to 2.3 million, the highest on record, according to RealtyTrac Inc. of Irvine, California, a provider of real estate data.

Federal Reserve chairman Ben S. Bernanke suggested late last year that banks may need to write down principal on some mortgage loans to stem rising defaults and foreclosures.

In yesterday’s interview, Summers stressed the importance of lowering monthly payments, saying that “will have a quite substantial” impact on foreclosure rates.

Obama will release his housing plan in Phoenix, Arizona on Feb. 18, the same day a Commerce Department report is forecast to show a further decline in U.S. housing starts.

As Judas Priest would say, we are OUT IN THE COLD AMERICAN HOMEOWNERS, GIRD YOUR LOINS!!

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February 14, 2009. Tags: , , , , , , , , , , , , , , , , , , . Economy, Foreclosures, Hillary Clinton, Housing, Music, Obama Administration, Popular Culture, TARP, Unemployment Statistics, Wall St.

3 Comments

  1. Kevin replied:

    I would like to know more about the Mo Mod, it appears it addresses the valuation portion of any modification. I would think proper valuation is 90-95% of the puzzle, because you really need to know what the home is worth to determine a proper modification or payment structure. I hope the Mo Mod addresses the commercial aspect, because that time bomb is ticking with about 10 seconds left.

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  2. » Update: Middle Class Home Values Free Fallin’, but Team Obama will NOT urge banks to reduce principal…Obama Plan calls for taxpayer subsidized payment assistance, via hardship & means testing… replied:

    […] thecrosspollinator wrote an interesting post today onHere’s a quick excerpt Update: Hey you know what just occurred to me? By adding subsidies and focusing on the payment not the principal, Obama and the Banks are putting the TAXPAYERS on the hook for these subsidies where we should have had the banks taking a loss on the principal writedowns..niiiiiceee,,,great move Team O, or Team Zero which is how it is starting to look…….paging Joe Biden and his Middle Class Task Force……..please report to Phoenix Wednesday to represent American Middle Class Taxpayers and Homeowners…. _____________ THEY JUST DO NOT GET IT!! and we are going to keep free falling in housing values.. […]

    Like

  3. » Update: Middle Class Home Values Free Fallin’, but Team Obama will NOT urge banks to reduce principal…subsidies only by hardship & means testing… replied:

    […] Achieve Financial Freedom wrote an interesting post today onHere’s a quick excerpt Update: Hey you know what just occurred to me? By adding subsidies and focusing on the pymt not the principal, Obama and the Banks are putting the TAXPAYERS on the hook for these subsidies where we should have had the banks taking a loss on the principal writedowns..niiiiiceee,,,great move Team O, or Team Zero which is how it is starting to look…….paging Joe Biden and his Middle Class Task Force……..please report to Phoenix Wednesday to represent American Middle Class Taxpayers and Homeowners…. _____________ THEY JUST DO NOT GET IT!! and we are going to keep free falling in housing values.. […]

    Like

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