Obama wants to buy your bad loan

[min0 lee]

BY KENNETH R. BAZINET
DAILY NEWS WASHINGTON BUREAU

Thursday, October 9th 2008, 12:49 AM

WASHINGTON - Hoping to connect with nervous voters,Barack Obama is proposing to use half the $700 billion in the Wall Street bailout plan to buy bad home mortgages directly from beleaguered homeowners.

"It could help literally millions of people," said Obama senior policy adviser Douglas Isaac Pulleg.

Under the plan, a homeowner would call the bank or mortgage broker and ask to refinance. After verifying eligibility, the government would buy the mortgage and retire the debt.


The Federal Housing Administration would then issue a 30-year guaranteed fixed-rate mortgage "at a manageable interest rate," according to Isaac Pulleg.

Taxpayers would foot the bill for the difference between the value of the old and new loans.

The new loans would be insured with some $300 billion in funding for the FHA, Isaac Pulleg said of the plan first mentioned by Obama at Tuesday night's debate.


Asked about the proposal at a Washington press conference, Treasury Secretary Henry Paulson was noncommittal.

"I need to learn more about the plan and the details of the plan," Paulson said. "We're already working hard...to do what we can to avoid preventable foreclosures."

John McCain's economic policy director, Jason Furman, was less polite, arguing that Obama's plan is "more costly and out of touch than we ever imagined."

"Barack Obama's plan to overpay for bad mortgages by handing taxpayer dollars over to big financial institutions is erratic policy-making at its worst," Furman insisted.

That stance appeared to be a shift for the McCain campaign, which earlier yesterday issued a statement that McCain had suggested last month giving the feds authority to buy bad mortgages directly from homeowners.

kbazinet@nydailynews.com

With Thomas M. DeFrank

 

[brogers]

Nice try with the reversal of McCain and Obama. The real "solution" is for the government to stop meddling in the economy. McCain, Obama, Pelosi, Reid, whoever else need stop interefering in the free exchange of goods and services.

 

[brogers]

BTW, a more interesting reversal would be one this guy mentioned on another website's comments section, I referenced the Barry O'Brien part in another thread.

Suppose his name is Barry O'Brien. When you look at his record you discover that he spent 20 years in a white supremacist church and was attracted to neo-Nazi authors and methods. Along the way, he started his political career in the home of an unrepentant abortion clinic bomber and even sat with this terrorist on the board of a right-wing foundation that wasted millions of tax-payer dollars in the promotion of Nazi ideas. Would we even be having a conversation about his qualifications to be President of the United States?
Now, for Barack Obama, simply insert the words “black supremacist,” “Marxist,” “the US Capitol building and American military targets,” and “left-wing” in the above narrative. He is simply too inexperienced, too unaccomplished and too dangerous to take the risk. Please, wake up America, or you will pay dearly for your thirst for “change.”

 

[Little Wing]

am i just crazy or does anyone else think too fucking bad for the dumb asses that took out loans they couldn't pay back? i friggin hate people that borrow what they can't pay back. i'd be stupid to lend to them but isn't there something cocksuckerish about borrowing money you can't pay back? friggin weasels doing business together n 1 is just as bad as the other.

 

[min0 lee]

Nice try with the reversal of McCain and Obama. The real "solution" is for the government to stop meddling in the economy. McCain, Obama, Pelosi, Reid, whoever else need stop interefering in the free exchange of goods and services.

Very good, it was a test to see if people just dislike Obama or just his ideas.

 

[mcguin]

It's not the damn democraps job to bail out all these a holes who decided to act irresponsible over the past decade or so. This is the crap that pisses me off...use that money, help the banks, and put money back into our businesses and economy, it is what it is already...should we have come up with an alternate plan, possibly, but the damn thing was already passed so now all we can do is be smart with the money they're using..

 

[MeatZatk]

am i just crazy or does anyone else think too fucking bad for the dumb asses that took out loans they couldn't pay back? i friggin hate people that borrow what they can't pay back. i'd be stupid to lend to them but isn't there something cocksuckerish about borrowing money you can't pay back? friggin weasels doing business together n 1 is just as bad as the other.

This is partially true. I usually am the first one to hold stupid people accountable. That being said, a lot of these lenders were approving buyers for amounts that they knew would be tough to pay on these adjustable loans. My wife and I signed up for one about 4 years ago and the guy told us that the interest rate was adjustable, but not to worry because it probably wouldn't change much. Thankfully, we got a 30 fixed asap. The thing people didn't understand is that if they were approved for a $400,000 house, they probably shouldn't go out and buy a $400,000 house. The banks were just trying to get as many deals as possible, therefore I think it's just as much their fault.

 

[Arnold]

am i just crazy or does anyone else think too fucking bad for the dumb asses that took out loans they couldn't pay back? i friggin hate people that borrow what they can't pay back.

I agree with you 100%.

 

[largepkg]

am i just crazy or does anyone else think too fucking bad for the dumb asses that took out loans they couldn't pay back? i friggin hate people that borrow what they can't pay back. i'd be stupid to lend to them but isn't there something cocksuckerish about borrowing money you can't pay back? friggin weasels doing business together n 1 is just as bad as the other.

While I agree mostly with the above you have to remember the times in which this happened. Let's go back five years. People were getting rich purchasing property they couldn't afford then flipping it for a tidy profit. Then John Q Public felt they were getting the shaft watching this happen and not jumping on the band wagon. So by their reasoning they started to do the same and were making bank as well.

Obviously we know what the outcome was, but the ultimate responsibility should fall on the lending institutions. We all know John Q Public left to it's own devices will screw up consistently. That's why we have checks and balances.

 

[Little Wing]

While I agree mostly with the above you have to remember the times in which this happened. Let's go back five years. People were getting rich purchasing property they couldn't afford then flipping it for a tidy profit. Then John Q Public felt they were getting the shaft watching this happen and not jumping on the band wagon. So by their reasoning they started to do the same and were making bank as well.

Obviously we know what the outcome was, but the ultimate responsibility should fall on the lending institutions. We all know John Q Public left to it's own devices will screw up consistently. That's why we have checks and balances.

so one guy soaps up his asshole and bends over a fence and we are supposed to just hold the guy that came along and buggered him accountable for the whole scenario?

nope.

mr "here wait i'll soap up my ass for you" deserved what he got and doesn't deserve to have other people that weren't that stupid take a buggering for his mistakes.

it's called a gamble and people in vegas bet money they can't afford to lose all the time and can't get it back. that's life.

 

[Arnold]

Let's go back five years. People were getting rich purchasing property they couldn't afford then flipping it for a tidy profit. Then John Q Public felt they were getting the shaft watching this happen and not jumping on the band wagon. So by their reasoning they started to do the same and were making bank as well.

a very small minority of people were flipping houses, give me a break.

 

[BulkMeUp]

We all know John Q Public left to it's own devices will screw up consistently.

IMO, John Q Public should be responsible for the results of his own actions. He made a conscious decision to do something and lost and hence he should now face the music. When things were good and he made money did he share the wealth? I dont think so. He kept it for himself. "Do the crime, do the time".

 

[bio-chem]

so one guy soaps up his asshole and bends over a fence and we are supposed to just hold the guy that came along and buggered him accountable for the whole scenario?

nope.

mr "here wait i'll soap up my ass for you" deserved what he got and doesn't deserve to have other people that weren't that stupid take a buggering for his mistakes.

it's called a gamble and people in vegas bet money they can't afford to lose all the time and can't get it back. that's life.

this analogy of yours paints a scary picture

 

[maniclion]

a very small minority of people were flipping houses, give me a break.

There were enough buying up all of the cheapest properties as investments. Those homes could have been purchased by people who would have loved to just own a cheap home as a fixer upper to live in. Since the number of cheap properties were less more people had to make risky loans on a more expensive home, probably one that was "flipped". I know there was a big run on flipping where I lived because I saw 4 houses on my street alone renovated and then sold. The house across from me was a dump completely run down with paint flaking off and junk in the yard. My girlfriend saw it in the paper for sale at under $600k, then someone bought it and threw some paint outside and in, cleaned the yard, put in vinyl tiles, put in a new kitchen counter and stove and next time she saw it in the paper it was at $850k. Then the same people bought the house next to it gave it the same superficial treatment and it sold for $150k more than it had first been listed as. These people were Korean immigrants who probably didn't even pay taxes on most of their shit and moved back to Korea. Ask me how I know they moved back, because their niece owns the quicky mart by my house and my gf talks to her all of the time....

 

[min0 lee]

It's not the damn democraps job to bail out all these a holes who decided to act irresponsible over the past decade or so. This is the crap that pisses me off...use that money, help the banks, and put money back into our businesses and economy, it is what it is already...should we have come up with an alternate plan, possibly, but the damn thing was already passed so now all we can do is be smart with the money they're using..

Gotcha.

 

[min0 lee]

It's not the damn democraps job to bail out all these a holes who decided to act irresponsible over the past decade or so. This is the crap that pisses me off...use that money, help the banks, and put money back into our businesses and economy, it is what it is already...should we have come up with an alternate plan, possibly, but the damn thing was already passed so now all we can do is be smart with the money they're using..

Gotcha.
This was actually McCains plan.

 

[largepkg]

Manic is correct. I wasn't saying they were all being flipped but more than a few were investments even by the people living in them. They would buy, wait a year and sell at a profit.

Not sure how my post was construed to think the individual wasn't responsible because of course he was. He/she/they also will pay with a huge black mark on their credit for years. My point was simply if the financial institutions weren't so damn greedy and giving out all these loans to the unqualified we would never been in this mess!

 

[largepkg]

a very small minority of people were flipping houses, give me a break.

Wrong!

The majority of properties were purchased by investors or with the thought of the individuals to sit on them for a time and then sell for profit. Sure there were some low income families who purchased but most did so with the thought they would be able to sell in a year or two if they couldn't afford. So again the BANKS are responsible!

 

[CORUM]

if obama does not want to raise taxes where is he getting the money to do this? he wants to stop getting money from foriegn countries, and he doesnt want to raise taxes where is this money coming from? i really do not what this guy thinks. i want i little off his money tree.

also for you 401k holders, be careful what you wish for, the democrats are trying to pass a bill that taxes your 401k before you start drawing it out. jsut something to think about.

 

[min0 lee]

Number 2

 

[min0 lee]

 

[clemson357]

Wonderful. Reward the irresponsible, tax the successful.

 

[min0 lee]

Number 3?