White House's $50B foreclosure plan a bust so far
Politico / VICTORIA MCGRANE
18-Jul-2009 (one comment)

The Obama administration’s $50 billion program tocurb foreclosuresisn’t working, and the White House knows it. ,,,the number of homeowners in foreclosure in the first six months of 2009 was up 15 percent from the same time period a year ago. The Center for Responsible Lending, a nonpartisan research and policy organization, projects at least 2.4 million additional foreclosure starts this year, causing nearly 70 million surrounding households to lose a combined $500 billion in property value. 

 

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David ET

Still "give Obama time"!?

by David ET on Sat Jul 18, 2009 08:33 AM PDT

//iranian.com/main/blog/david-et/mr-obama-tear-down-wall 

In March I said it will not work and gave solution :"Instead of subsidizing the corporations and banks, start with the underlying problem: Housing!

- Offer or insure the refinance of EXISTING home loans REGARDLESS OF THEIR APPRAISED VALUES at 5% to all home owners and 6% to investors up to $650,000.  Offer or insure purchase of NEW homes at 4% to homeowners and 5% to investors.

- Those who still can not afford the payments will have to let their properties foreclose if they chose to. They should not have owned the homes they could not afford to begin with . BUT if anyone has been foreclosed or is being foreclosed and they financially qualify to own a CHEAPER home (no more than 60% of the loan value of their previously foreclosed home) , they should be allowed to obtain financing regardless of their prior foreclosure record and credit."

This way you still lose some in foreclosure but create a substitute market at lower price range which in a domino effect help the higher priced homes also but at end people live in what they can afford not what they can't and also prices adjust based on affordability and market and not speculation and over extension. 



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