Regarding the stimulus bill, anything for homeowners?

[Oregone]

Like a government no-cost, lower interest refi or something? Sorry for being completely intellectually lazy (but in the midst of a crisis). So I was just checking to see if anyone knew if anything was addressed for actual homeowners.

[Pharaoh]

1. Good fucking Question!

I know my daughters close to losing hers.

Still the huge bailouts , but do we want to create millions more homeless people?

[Still Sensible]

2. Not in the stimulus

although there was a lot for out of work people, job creation, benefits, etc... the mortgage crisis is a priority as the administration dispenses the 2nd half of the TARP funds.

[FrenchieCat]

3. See TARP Fund for such items...

there is 350 billion sitting there for that.

[Oregone]

5. But it wont be used for that probably.

Itll probably keep going to banks that lend money to pharmaceutical giants that need to buy out their competitors to lay more Americans off.

Or it will go to banks, such that they can combine it with other money they are borrowing at .5% from the government, to re-lend to Americans at massive margins.

We will see.


Anyway, until there is something substantial to re-adjust these leveraged mortgages, Americans will remain indentured servants through these tough times.I can refi 2% off my current mortgage, but with closing costs itll take 3 years just to break even (going from a 30 to a 15 even!). That sucks.

[Myrina]

4. Heard on NBC that if Geithner's version of some bill passes ...

... 'toxic' mortgages and loans will be bought by a federal 'bad bank' that will then allow stressed homeowners (myself included) to refi/come to agreement on more manageable terms.

Not sure which bill, specifically, but it was amidst all the Stimulus and TARP news bytes.


:hi:

[Oregone]

8. We can hope it passes...

Though Im not sure why the government is buying toxic assets instead of all the shares of the banks that hold them (which would be much cheaper), and then figuring out what to do. But if they can get these things refi-ed, thatd be awesome.

[SoCalDem]

10. As I understand it, that plan is to help the banks get rid of the bad mortgages

and make THEM solvent and "out-from-under".. The "people" who owe those mortgages will still OWE them...just to the US govt, instead of the bank/mortgage company..

the SAME amount of money could have been funneled to home-buyers (not flippers or multiple-home buyers), in the form of a coupon/voucher, in the amount of the "value-lost"...and a re-assessment/refinance at a 30 yr rate of ...say 6%... The voucher/coupon would be redeemed by the bank when they got payment from the govt..

I'm sure a clause in it could have protected the govt if housing prices went through the roof again, but in most cases, a person making $200K or less, whose house had "depreciated" $100K would have welcomed the opportunity to "pay-down their loan by sending a $100K voucher to the bank they financed with.. They would come out of it owing the "real value" of their home, and the banks would still get the money in the end when they redeemed the vouchers..

[jpak]

6. It increased and extended homeowner tax credits for solar energy devices ($5000)

at the very least

[Oregone]

7. So, for those cash-strapped Americans in crappy loans, all they have to do is charge a solar panel?

Thanks. Glad I asked. :(

[northernlights]

9. Oregone, ~250B of the TARP money

will be used to help cash-strapped americans in crappy loans. That's the 2nd half of the $700B, the 1st half of which was blown by *'s friends in a spending spree and used for anything *except* making loans to businesses.

That's another fight for Obama, cuz of course the repukes will want to give the 2nd half to their friends to blow on redecorating their bathrooms and buying $50M private jets from France.

But I think Obama will win this one, too.

[Oregone]

11. Ok, Ill wait and see

That may happen. It would be a nice gesture.

[stillcool]

12. I don't know but here's..

a link to the bill..
http://www.huffingtonpost.com/2009/01/24/house-stimulus-bill-full_n_160569.html