An August Surprise from Obama?

[BustNChops]

I don't know how this could be pulled of. But, it fits the MO of congress - ignoring unintended consequences. If it makes you feel better, "25%" of you would be helped out with your underwater mortgage and "75%" of you would be screwed and "100%" of us woudl be left footing the bill. What those real percentages are, I do not know.


LINK (http://blogs.reuters.com/james-pethokoukis/2010/08/05/an-august-surprise-from-obama/)


That said... I just got this info from a friend. "right now we have a special for FHA and VA at 4.375 no points for a 30 year. 4.375 with no points." Wow that is low!!!!!

[wolf_chatter]

I don't know how this could be pulled of. But, it fits the MO of congress - ignoring unintended consequences. If it makes you feel better, "25%" of you would be helped out with your underwater mortgage and "75%" of you would be screwed and "100%" of us woudl be left footing the bill. What those real percentages are, I do not know.


LINK (http://blogs.reuters.com/james-pethokoukis/2010/08/05/an-august-surprise-from-obama/)


That said... I just got this info from a friend. "right now we have a special for FHA and VA at 4.375 no points for a 30 year. 4.375 with no points." Wow that is low!!!!!

by the way Wells Fargo has started a program where they short sell the house back to the owner at the new value. Should be interesting to see how that works. This is 3rd hand but apperently my wifes co-workers sister recieved her packet 3 days ago. She lives in nor-cal and the house was bought at $505,000 and is now worth $285,000 she bought it from herself for $285,000 and the bank writes of the rest with the ability to go back after her if she makes a certain amount of money within the next 5 years. After that thye have no legal recourse.

[Stuck in Seattle]

Insanity: The government is now pushing $1,000 down payment mortgages. Do we really need more homeowners with no equity (http://washingtonindependent.com/93795/the-return-of-the-1000-down-mortgage)?

Only three states in so far. Wisconsin is giving 100% loan to equity mortgages if you have a credit score of 680 or better.

On the bright side we should be about bottomed out so these loans shouldn't go upside down by much no matter what happens.

[BustNChops]

On the bright side we should be about bottomed out so these loans shouldn't go upside down by much no matter what happens.

I've seen quite a few studies that believe we many areas still have 5-10% further to drop (http://www.housingwire.com/2010/08/04/20m-borrowers-could-be-underwater-before-2012-deutsche-bank). We still have 2 more waves of foreclosures that have been predicted/discussed (2011 - 2012). Couple that with unemployment remaining high 9.5% nationwide (14.5% NV) and idiots leading the charge, this housing issue may only get much worse. It is possible that 5% is optimistic.

The scary part about this is that it appears just stupid enough to do. The uproar would be big.