Obama Doubles Down On Bad Mortgages
Mar 26, 2010 Political
The Obama administration extended a lot of government help to people who did not pay their mortgages. People who bought homes they could never afford (and probably looked to flip at a profit) were taken by surprise when the housing bubble burst. Aided by Democrats who forced these loans and denied the troubles of Fannie and Freddie, people got in over their heads.
Obama rode in on his red horse and helped them. Now, nine months later, half of those who received help have gone into default again.
So how do we fix this? In the old days people would have their homes foreclosed upon and sold to satisfy the debt. But in the age of Obama they need help.
So now Obama and his minions are working on reducing the amount of mortgage payments for people who can’t pay what they owe. The plan is to reduce mortgage payments to as low as 31% of their income for three to six months. This would be based on unemployment income and lenders could allow people to skip payments. How many people will take advantage of this only to lose their homes later?
When the help was first introduced, people who were up to date were excluded from any rate reduction. If you did what was right, you were punished.
I refinanced for 15 years at 4%. I tried to get a much better rate but had to work to get this one. I was told up front that I would not do better because I pay my house payments on time (actually ahead of time). My mortgage person told me that they had a person refinance who was behind three months. He was able to refinance at 1% for the remaining life of the loan.
I, on the other hand, was not afforded this great rate because I pay my bills. There use to be a time when good credit was awarded with better rates.
The first helping hand did not do any good so now they will double down and try to help more people.
How many times do they have to keep flicking the switch before they realize the bulb is not going to come on?
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Tags: double down, loans, mortgages, Obama, socialism