Tax dollars to be spent for home foreclosures

Boy the hits just keep on rolling.  I got so mad that I almost crashed in my car on the way home.  I was listening to the Larry Elder Show on his LA flagship station 790 KABC.  This was the jist of the segment.  Good Ol Chuck Schumer wants to use our tax dollars to help bail out stupid people that cant manage their spending habits from losing their homes to foreclosure.  This would also include all of the people that took those time bomb ajustable interest only loans,  you know the ones that baught the houses that they new they could never afford normally.  If didn't earn the house don't expect me to pay for it you F_ _k's.

Darren77th...

I am in the Mortgage Industry so let me tell you what most are not being told.

The majority of loans going into foreclosure are in a group known as Sub-Prime and ALT A. The reason? The lending guidelines are so liberal, illegals are getting these loans en masse. No income or stated income documentation, 100% financing, mark you are a citizen..no questions ask. The fraud involved in these groups of loans is rampant. Brokers & Loan Officers that solicit these loans could care less. As soon as the loan closes, they are paid and go on to the next victim. This is not saying all Brokers or Loan Officers are dishonest but they are fewer than the ones that are not.

An illegal buying a home usually lies about his citizenship, can easily use some elses credit and co-mingled funds for any cash to close or reserve requirements. These loans have many different programs, kinda..something for everyone. When they can no longer make the payments..they bail and yes sometimes deny they are the person that signed the loan documents since they have so many name variations it is hard to prove.

The worst part is FHA loans that are insured by the government ( ie us taxpayers)changed its requirements not to even ask if someone is a citizen or in this country legally.

What? 'Tax dollars to be spent for home foreclosures?' This is news to me. I haven't heard a word about it until I logged onto this thread. It's going to sound here like I'm being hard on you, but please bear with me and consider the following: Why is the subject even up for discussion? Of all the burdensome tax issues facing Americans today that can be talked about (i.e. the tax code, how many taxes there are, how high they are, etc.), how in the world can an entire thread be devoted to and so much attention and focus be put on something like this? 'Tax dollars to be spent for home foreclosures?!' Are you kidding me?! I couldn't possibly ever emphasize enough how the level of importance this carries absolutely pales in comparison to what the party of Karl Marx is planning as we speak. And to me, it should be by far the much bigger story. HOW ABOUT PUTTING MORE ATTENTION AND FOCUS ON THAT CONTROL FREAK LIBERAL SCUM BAG NANCY PELOSI AND THE SOCIALIST DEMOCRATS WHO WANT TO RAISE OUR TAXES $400 BILLION! That's billion with a "B" folks! HELLO? Now I'm not saying this other thing about the home foreclosures isn't of any importance whatsoever, but come on people!

pittjoe.....

I understand what you are saying and maybe tax dollars being used to bail people out of foreclosure pales in comparison to other issues but this still a hugh issue.....

With the high foreclosure rates comes declining market...people that have owned their homes for years, made their payments and earned equity will see their appreciation start to dwindle.

Until this, foreclosures were absorbed by the lender with the borrower charged the difference after the home was sold off by the lender. Some borrowers had to file bankruptcy if the deficit was to great and of course it ruined their credit score which dictates the rate of further credit......if this were to go through guess who it will protect? The majority of these loans are done for illegals because they do not have to prove anything.

Another perk for those that come here illegally compliments of the US taxpayer. This is but a piece of what is wrong in America.

Gail, I agree wholeheartedly.

I to agree there is more important things, but the fact it seems most people don't know about just shows how right I was to inform all of you.  Gail you are also right that illegals comprise the biggest population of these loans which just ads more fuel to the fire .  It just makes me mad because once again the dems are trying to expand welfare state and big governement.  more entitlement programs.  This program of course will raise taxes thats part of it.  if thats ok with you pittjoe, than fine you pay it. i dont waqnt to. 

 

If you want more info on it just check out the Larry Elder show's web site.

I just found thison the FHA web site.....

TENS OF THOUSANDS OF BORROWERS COULD HAVE AN “EXIT STRATEGY” FROM RISKY LOANS IF FHA IS MODERNIZED
Legislation to modernize FHA needed now more than ever

WASHINGTON - To address the growing number of foreclosures in the subprime market, modernizing HUD's Federal Housing Administration (FHA) continues to be "the most practical and immediate way to address the needs of a large number of troubled subprime borrowers," said Assistant Secretary for Housing - Federal Housing Commissioner Brian Montgomery in testimony before the House Financial Services Committee today. "With expanded authority to set insurance premiums commensurate with risk, FHA could potentially assist tens of thousands more borrowers who need an exit strategy from their subprime mortgages," the Commissioner added.

Where does this come in handy.........they don't require proof of citizenship anymore.......

Sounds just like a repeat of the 80s savings and loan fiasco that one of the Bushies was involved in. Remember we bailed out the savings and loans then.

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That was on Fox News sometime in the last 2 weeks.  I can"t remember the host name, will have to look it up.  An Hispanic women said it wasn't the homeowners fault but the lending companies for not explaining.  She wanted the govt. to bail them out.  It may have been Neil Cavuto.  Gotta go look.

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No sympathy from me...most of them use Hispanic Loan Officers and Brokers so most of them do understand....or at least have the ability to communicate with someone that can explain.

I see these loans everyday and the fact is the majority of these loans were created through fraud....they wanted the lowest payment possible, not have to prove citizenship or income and took the risk. The majority of these loans are in CA where the cost for a 1000 sq ft home can be over $500000.00 due to the high land value.

Gail & All,

I'd say all of this ties in together..illegals, greed, foreclosures, free medical, social security and on & on.

For a single town, Greeley, Colordo is # 4 on the list in the USA. The town is full of illegals with the Swift Meatpacking plant there and many other places whp hire illegals. The entire illegal scheme is entangled within itself. They feed off each other and WE foot the bill. Can it be changed?  maybe.

I can't find it on his site. Maybe another show.

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Oops, this is hickle48, I did it again! This is my husbands account, I used my sons last time...

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Has a petition been started on this.  I can't find it if it has.

If a lot of pressure isn't brought to bear on the president and Congress, we will all end up paying for this bailout. 

I have "struggled" along in a smaller house with a lower payment on a fixed rate mortgage.  Now to know that those who are living "better" than I am will get a bailout from all of us just galls me.

10 Dec 2007

Many in the mortgage industry call these " lier loans"   everybody involved in the loan in any way, shape or form was lying.

As usual the taxpayer will be screwed, one way or another !

Why don't they just help ALL homeowners then and do a tax moratorium for a year...give us all a break!  All this does is reward those not living up to their obligations and shafting the ones that have scrimped, struggled, worked 2 or 3 jobs or whatever it took to live up to their obligations.

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Housing bailout update--sign the petition!

 

This week, the Senate Banking Committee passed a new version of the $300 billion housing bailout. The fight now moves to the full U.S. Senate, where a vote is expected next month.

While the Senate bailout bill slightly improves upon the House version, it fundamentally remains a lender bailout that lets banks cherry-pick the worst loans in their portfolios and shift the liability 100 percent to the U.S. taxpayer. The bill also contains a permanent new tax on the companies that finance mortgages that will send $500 million a year to a state government slush fund.

President Bush promised a veto on the House version of the bailout. Importantly, despite news of a “compromise” on Capitol Hill, the White House has remained silent on the portion of the bill that would allow the Federal Housing Administration to finance $300 billion in risky mortgages at the taxpayers’ peril. This means there is still an opportunity to improve or defeat this legislation in June, and to support a presidential veto.

All attention is now on Senator Mitch McConnell of Kentucky. Will he demand changes or will he just go along with the Banking Committee?  Please call Sen. McConnell at 202-224-2541 and ask him to oppose the housing bailout.

The Orange County Register recently interviewed Natalie Lohrenz, a credit counselor and self-described liberal. She’s in the front-lines of this crisis, and she says:   

“I personally feel the bottom line is we can’t bail out all these people. Then you just have the same problems again. I think we have to let them fail for the market to correct itself. I know there is a lot of pain in people’s lives, and we do what we can. … but expanding (the Federal Housing Administration) is just having tax payers bail people out. If it feeds bad behavior, then you have more bad behavior. The reason why people aren’t making bad loans anymore is because those loans are failing. … Practically everyone I see in counseling could not afford their home on a traditional 30-year fixed-rate loan… I am not a free market person, but having experienced this firsthand for so many years, I am looking at these mortgages and saying, ‘[explicative], this is insane.’"

Congress needs to pay attend to the broader moral message a housing bailout will send. Most Americans saw the real estate bubble of the past few years and either said “I’ll wait” or bought within their means. Now those responsible Americans get to pay for the mistakes made by reckless banks and borrowers.   

The stakes are huge as Congress gets ready to create three hundred billion dollars in new taxpayer risk. If this bill passes, the U.S. government will begin to refinance some of the riskiest mortgages on the market.  

For example, this housing bailout will “rescue” people who stripped all of the equity from their homes. So someone who refinanced their home to cash out say, $100,000, during the bubble can now get the bank and the taxpayer to cover that debt through this bailout program. What’s more, thanks to recent changes in tax law, that $100,000 is a tax-free windfall for the borrower. It’s literally free money for people who took reckless financial bets that housing prices would continue to rise. There’s even more free equity in the program for people who claim they can never repay their loans.

Meanwhile, the prudent American who is working, saving, and paying his or her taxes, gets stuck with the bill.

FreedomWorks delivers more AngryRenter.com petitions to Capitol Hill this week.

The U.S. government cannot even afford the programs it is currently running, let alone another $300 billion in housing subsidies and liabilities. This week, USA Today announced that the real deficit of the federal government increased $2.5 trillion last year. The paper reports: 

“Taxpayers are on the hook for a record $57.3 trillion in federal liabilities to cover the lifetime benefits of everyone eligible for Medicare, Social Security and other government programs, a USA TODAY analysis found. That's nearly $500,000 per household."

"When obligations of state and local governments are added, the total rises to $61.7 trillion, or $531,472 per household. “

USA Today is looking at the government’s finances like a business. And now Congress wants to add a bailout for housing speculators and their lenders to the taxpayers’ tab. At some point, America has to say NO.

Please continue to call your Senators through the  U.S. Capitol Switchboard at (202) 224-3121 and let them know you oppose the housing bailout.

Sincerely,

Dick Armey
Chairman
FreedomWorks