it says it would be paid for through a fee on big banks, not through taxes. Now granted, that fee could get passed on to the consumer but only if you chose to pay it.

Seems like a good move to me. Pending more info, I support it.

Given that the bank's liability for robo-signing bad loans and using ninja foreclosure tactics was probably 7 times (or more) than the amount of the settlement, it sounds like a great deal for the banks. The outrage should lie not in the fact that people with bad mortgages are getting relief but in the fact that gov't is in bed with the banks and basically giving them a sweetheart deal (again. Too big to fail part deux!). Smells like shit to me.

big banks have known this was coming for a while, makes a little more sense why a few of them tried to institute random charges only to rescind them due to customer backlash....not that its the sole reason they did that, but probably one of many factors

The government's monetary policies concerning home loans created the problem to being with, and then the banks wouldn't loan shit without taxpayer money to bail them out some more.

Obv government is in bed with the banks. He/She who controls the money, controls everything.

Good thing loans were given out to high risk borrowers and then that debt was bundled into securities that were artificially inflated such that over time they became an unsightly blight upon the financial sector of a whole country.

Good thing we let that shit go on for so long.

Dolphin, don't run around and act like society as a whole wasn't jumping on the 'credit' bandwagon in the 90's as the policy changes made credit so free flowing that a whole section of a generation of Americans was raised on the idea that a person should be in debt their whole life.

It honestly makes me sad. As well, even with a down payment in terms of close to my property value I am still underwater, but will not be within a year, so I'm not bitching too hard. But, yea, I agree with you, my kids will be raised to learn to not be in debt.

 

Originally Posted by mordan

Glad I bought in an area that already had the lowest cost of living in the state as well as post bubble.....I could sell my house and make $$ right now

Nice, I bought a house in New Orleans right after Katrina so it was super cheap. Hoping to book 6 figs when I sell this summer.

My prediction:

This will be a huge failure, just like the previous mortgage modification program through which nobody got a modification.

The comical part of this to me is the banks and the government agree to 25 billion in cash payments and modifications, yet nobody knows and it hasn't been determined yet, who or how anyone qualifies for any of this or how they go about getting a cash payment or modification. One story I read said it will take about a year to figure it out because its sooooo complicated. All the calculations on just what teh banks have to do to get credit toward their agreed upon share. the best part is if they do not comply they have to pay the government a penalty. loooooooooool Now who do you think is going to get something out of this. An individual homeowner who has no idea how to even take part in this program that is sooooo complicated the government and the banks don't even know how it will work, or the government.

Oh well, the important thing is that it's an election year and Obama got a big photo op with a huge smile and a headline saying he got 25 billion from those nasty banks to give to the masses. That'll teach them! This a huge pile of horse shit. imo

Hey willywoo, I think one of the reasons YOU don't hear loan modification success stories is that YOU don't want to hear them. Now I personally don't agree with these programs but there are plenty of people being helped. Maybe not as many as promised. But again, I don't think anyone should be getting anything

 

Originally Posted by dolphin13

Hey willywoo, I think one of the reasons YOU don't hear loan modification success stories is that YOU don't want to hear them. Now I personally don't agree with these programs but there are plenty of people being helped. Maybe not as many as promised. But again, I don't think anyone should be getting anything

In December 2010, a Congressional panel called the program “a failure,’' and said that it would likely end up helping about 750,000 homeowners. Saying it was a waste of money, the Republican-controlled House voted in March 2011 to kill the foreclosure relief program. The Democrats who controlled the Senate said they would pursue a rescue. But Democrats, too, considered the program badly flawed.

http://topics.nytimes.com/top/refere...lan/index.html

 

Originally Posted by dolphin13

I thought you said no one got a loan modification. Now it's 750k. That's a lot of no ones

You really got me on that one, except it wasn't 750k, it was more like 350k and the point was that the program was a huge failure just like this one will be.

Exaggeration to make a point is called "hyperbole".

In any event we will see what happens. The cool part about the plan is that even though the deal was announced today, since it will take a year to figure out how it works we have no worries about any negative news stories affecting the election because they've already told us it won't be up and running until after the election.

 

Originally Posted by BigJohn804

Just so we can sum up: the Obama admin response to a mortgage crisis resultant from mortgages written with barely any underwriting standards and then packaged and re-sold on the secondary market as high quality loans is to take all the brakes off and have everyone refinance with no underwriting standards and have those loans packaged and sold to Fannie and Freddie where the government will guarantee the whole sha-bang... damn the consequences.

makes sense.

That right there is maybe the biggest problem with this mess. Dumping more risky loans on a GSE that is already in need of being bailed out doesn't seem like a great idea.

Well 750k homeowners who lost their houses to foreclosure get 2k from the banks in the settlement. I guess that's good. And individuals can still sue the banks, it's the govt who can't. This doesn't seem as bad as I thought.

It's a little frustrating to see banks not working a little harder with those acing foreclosure. Personally I think it's in their best interest to keep houses out of foreclosure. I realize some foreclosures are inevitable, but delaying payments or small reductions in principal for those still able to pay something seems better than the bath they're taking when they sell the house at rock bottom prices.

They're not holding the propert tho. They're selling them at losses very quickly.


The average sale of a foreclosed home is around 160 days after foreclosure. It's not like they're buying and holding for a turnaround four years from now