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Wow...so I knew it was going to be bad, but whoa...drunken sailors watch out, Barry's got his tax-payer secured credit card out and he is not afraid to use it.
So, just Tuesday, Barry – who apparently was not told the election was over and made a campaign stop in Colorado, signed his $1.2 trillion “economic pork” bill yesterday. Not content to stop the spending there, today he rolled out some “Homeowner Affordability and Stability Act.” Well kinda. You see, they don't really have the plan developed, but he needed something to talk about at today's campaign stop in Arizona, so why not toss it out there and see if it sticks.
Think I am exaggerating? Check out the web site they built for it: http://www.blogger.com/www.financialstability.gov. Heck, maybe Barry should have earmarked some stimulus money for Web designers at the White House! That thing is a time capsule that harkens back to the early days of the Web.
Want the full text of the bill? Well, you see, there is no bill. I talked to the Treasury myself today about it. Looks like March 4 is the magic day when all the details will be fleshed out. But here is the gist:
If you want to refi, but your loan exceeds 80% of the home's value, you can refinance. But, that is only if your loan was held or secured by Fannie Mae or Freddie Mac. Confused yet? It gets better. Nobody knows yet what the PMI structure is, or who is providing the PMI. Also, do you have a second mortgage? Good luck getting that second lien holder to subordinate to allow you to refi the first...it just ain't going to happen.
But what if you are already behind? It will provide guidelines to lenders to modify your loan. There are other kickers in here too. Like if you pay your modified loan on time for 5 years, they will knock $5,000 off the principle balance. See, and silly me, I thought we all were supposed to be paying our mortgages monthly. What are the chances of me getting in on that $5K? And, if you tell your lender you are in trouble before you miss a payment, you may be eligible for a $1,500 principle reduction. Then, if all else fails and you enter bankruptcy, a judge can cram down the principle balance to the fair market value of your home.
There are other details, but I want to keep this light reading. Let me distill this for you. Have you been making your payments on time? Congrats, you get to pay for every schlub that over spent and over leveraged himself.
Isn't socialism grand?
Posted on 2/18/2009 10:30:00 PM by News Blogger and filed under
foreclosure,
homeowner affordability and stability act,
housing stimulus,
Obama
Wow...so I knew it was going to be bad, but whoa...drunken sailors watch out, Barry's got his tax-payer secured credit card out and he is not afraid to use it.So, just Tuesday, Barry – who apparently was not told the election was over and made a campaign stop in Colorado, signed his $1.2 trillion “economic pork” bill yesterday. Not content to stop the spending there, today he rolled out some “Homeowner Affordability and Stability Act.” Well kinda. You see, they don't really have the plan developed, but he needed something to talk about at today's campaign stop in Arizona, so why not toss it out there and see if it sticks.
Think I am exaggerating? Check out the web site they built for it: http://www.blogger.com/www.financialstability.gov. Heck, maybe Barry should have earmarked some stimulus money for Web designers at the White House! That thing is a time capsule that harkens back to the early days of the Web.
Want the full text of the bill? Well, you see, there is no bill. I talked to the Treasury myself today about it. Looks like March 4 is the magic day when all the details will be fleshed out. But here is the gist:
If you want to refi, but your loan exceeds 80% of the home's value, you can refinance. But, that is only if your loan was held or secured by Fannie Mae or Freddie Mac. Confused yet? It gets better. Nobody knows yet what the PMI structure is, or who is providing the PMI. Also, do you have a second mortgage? Good luck getting that second lien holder to subordinate to allow you to refi the first...it just ain't going to happen.
But what if you are already behind? It will provide guidelines to lenders to modify your loan. There are other kickers in here too. Like if you pay your modified loan on time for 5 years, they will knock $5,000 off the principle balance. See, and silly me, I thought we all were supposed to be paying our mortgages monthly. What are the chances of me getting in on that $5K? And, if you tell your lender you are in trouble before you miss a payment, you may be eligible for a $1,500 principle reduction. Then, if all else fails and you enter bankruptcy, a judge can cram down the principle balance to the fair market value of your home.
There are other details, but I want to keep this light reading. Let me distill this for you. Have you been making your payments on time? Congrats, you get to pay for every schlub that over spent and over leveraged himself.
Isn't socialism grand?
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