Clinton proposes $30 billion to stop foreclosures

Why does the government need to do this, and where is the $ coming from? I almost forgot about the when low on funds, raise taxes, raise interest rates and print more money to inflate the economy out of a recession option. Consumers are responsible for educating themselves on investments, owning a home is an investment, not a right, the days of 5 acres and a mule are long gone. The ones who sold the mortgages are long gone, many time the Sub-prime loans were marketed in bundles with people with higher credit scores, thereby masking risk. After the loans were funded, they were immediatly sold to other banks at large discount over the interest rate, with the mortgage loan originator keeping the massive funding fee. This is very similar to how alternative financing for automobiles are packaged at dealers for high risk customers. Additionally, brokers would push borrowers to exaggerate income from verified income to "stated" income at a small 1/4% penalty to obtain more borrowing power - result more loan $, more house, a larger funding fee, and an interst only loan to boot - a 103% loan with no chance of equity. It is unethical, but legal since the borrowers signature is on the loan paperwork legally stating that is their income. Also many homeowners continually tapped into their equity and overextended themselves into not being able to pay their mortgage, coupled with an interst only 1st and 2nd - but they have 2 nice BMWs in the driveway. It is a personal option to live within means, but to live beyond a reasonable budget is grossly ignorant and I have no empathy. To get rid of foreclosures on the market, Local governments have the ability to liquidate the glut by imposing penaties to owners when homes are unsold or vacant for more than 6-12 months, adding additional tax levies based on the assessed value. Now a bank or investor must evaluate the cost of paying the additional fees, or taking a loss on the property to the shareholders - cities that have been doing this over the past few years have no problems with managing the vacant home population and subsequent crime.

I get so frustrated listening to these people talking about bailing out the mortgage crisis. These people engaged in speculative home buying, drove up property values and taxes and they're getting what they deserve. The real estate market NEEDS this re-adjustment and if the government steps in now and wastes our tax dollars on bailing out these IDIOTS then goddamnit, I expect them to buy me a house as well. My wife and I saved our money and we expected this re-adjustment to happen and we planned for it... but now I'm thinking we were fools to budget and plan. We should have just jumped in and bought something we couldn't afford and then cried and held up pictures of our baby son and wailed for the government to do "something."

I like to know more information on the $30billion to stop foreclosures if is tue
I need some help with my mortgage payment.
My payments went up a thousand dollar a month
more.
I like some one to help me get 30-years fix.
I want to keep my house for my family.


Thank You Tomas

I like to know more information on the $30billion to stop foreclosures if is tue
I need some help with my mortgage payment.
My payments went up a thousand dollar a month
more.
I like some one to help me get 30-years fix.
I want to keep my house for my family.


Thank You Tomas

Almost one year ago to the day, Barack Obama sent a letter (below) to Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson urging them to convene a homeownership preservation summit. Today, Clinton is proposing essentially the same thing.

One key difference, however, is the diversity and representation that Obama called for - not just some of the same people who helped to create these problems or have a direct financial industry stake in the outcome: "I urge you immediately to convene a homeownership preservation summit with leading mortgage lenders, investors, loan servicing organizations, consumer advocates, federal regulators and housing-related agencies to assess options for private sector responses to the challenge."

Here's the letter Senator Obama wrote to Bernake...

"March 22, 2007
The Honorable Ben Bernanke
Chairman
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, D.C. 20551

The Honorable Henry Paulson
Secretary
U.S. Department of Treasury
1500 Pennsylvania Ave, NW
Washington, D.C. 20220

Dear Chairman Bernanke and Secretary Paulson,

There is grave concern in low-income communities about a potential coming wave of foreclosures. Because regulators are partly responsible for creating the environment that is leading to rising rates of home foreclosure in the subprime mortgage market, I urge you immediately to convene a homeownership preservation summit with leading mortgage lenders, investors, loan servicing organizations, consumer advocates, federal regulators and housing-related agencies to assess options for private sector responses to the challenge.

We cannot sit on the sidelines while increasing numbers of American families face the risk of losing their homes. And while neither the government nor the private sector acting alone is capable of quickly balancing the important interests in widespread access to credit and responsible lending, both must act and act quickly.

Working together, the relevant private sector entities and regulators may be best positioned for quick and targeted responses to mitigate the danger. Rampant foreclosures are in nobody's interest, and I believe this is a case where all responsible industry players can share the objective of eliminating deceptive or abusive practices, preserving homeownership, and stabilizing housing markets.

The summit should consider best practice loan marketing, underwriting, and origination practices consistent with the recent (and overdue) regulators' Proposed Statement on Subprime Mortgage Lending. The summit participants should also evaluate options for independent loan counseling, voluntary loan restructuring, limited forbearance, and other possible workout strategies. I would also urge you to facilitate a serious conversation about the following:

* What standards investors should require of lenders, particularly with regard to verification of income and assets and the underwriting of borrowers based on fully indexed and fully amortized rates.

* How to facilitate and encourage appropriate intervention by loan servicing companies at the earliest signs of borrower difficulty.

* How to support independent community-based-organizations to provide counseling and work-out services to prevent foreclosure and preserve homeownership where practical.

* How to provide more effective information disclosure and financial education to ensure that borrowers are treated fairly and that deception is never a source of competitive advantage.

* How to adopt principles of fair competition that promote affordability, transparency, non-discrimination, genuine consumer value, and competitive returns.

* How to ensure adequate liquidity across all mortgage markets without exacerbating consumer and housing market vulnerability.

Of course, the adoption of voluntary industry reforms will not preempt government action to crack down on predatory lending practices, or to style new restrictions on subprime lending or short-term post-purchase interventions in certain cases. My colleagues on the Senate Committee on Banking, Housing and Urban Affairs have held important hearings on mortgage market turmoil and I expect the Committee will develop legislation.

Nevertheless, a consortium of industry-related service providers and public interest advocates may be able to bring quick and efficient relief to millions of at-risk homeowners and neighborhoods, even before Congress has had an opportunity to act. There is an opportunity here to bring different interests together in the best interests of American homeowners and the American economy. Please don't let this opportunity pass us by.

Sincerely,

Barack Obama
United States Senator"

mail your keys to the bank your house is not worth what you owe. I know that honest realtor told you what a great deal you got.

my property value went lower and I don't have enough equity to refinance.
I want to keep my house for my family some day
will go back.
I have a adjustable loan
Can some one please help I don"t want something
for nothing I will pay for the help.


Thank you