Senate Advances Homeowner Rescue

[shamaal]

After the administration bailed out lenders with unlimited money, the Senate passed 83 - 9 a complicated bill bailing out homeowners in foreclosure. A number of interesting bits are in the bill including an $8000 tax credit for first time buyers.

The house is also running their own version of the bill. Both houses are running up against Democrats who insist that no money be borrowed to finance the bill. Darn those fiscally responsibile Democrats. Now that the Republicans no longer control the Congress perhaps the President will show some fiscal resonsibility backbone and veto this.

Lawmakers have been negotiating behind the scenes with the Bush administration to avert a veto. Dana Perino, the White House spokeswoman, told reporters the Senate measure has "some really good aspects" and Congress is "on the right path."

"We have been working closely with them to try to change the bill in a way that we think that it could be something that the president could sign," Perino said.

Borrowers would be eligible for the housing rescue if their mortgage holders were willing to take a substantial loss and allow them to refinance, and if they could show an ability to make payments on the new loan. They would ultimately have to share with the government a portion of any profits they made from selling or refinancing their properties.

The bill also would tighten controls and create a new regulator for Fannie Mae (FNM) and Freddie Mac (FRE), the mortgage giants that provide huge amounts of cash flow to the home loan market by buying loans from banks.

It would provide a $14.5 billion array of tax breaks, including a credit of up to $8,000 for first-time homebuyers who buy in the next year. And it would boost low-income tax credits and mortgage revenue bonds. The measure falls $2.4 billion short of covering the costs of those tax items, a sort point for Blue Dogs who oppose initiatives that add to the deficit.

My Way News - Housing rescue plan passes key Senate test

[techieman33]

is anyone else getting tired of this bail out crap. I don't think that this country will ever fix it's problems as long as the people living in it know that that the government will bail them out if they get in financial trouble. Was no one else raised that carrying debt was bad? That you shouldn't buy something if you can't afford it? All this leads to is borrowing more money from china and other countries further weakening of the dollar and higher prices to put us even further in to debt.

[Rick]

While we're bailing out buyers and lenders, zero down mortgages are still going on. I guess this has been going on for some time, but I just heard about it.

Buyer comes and says he will buy the house if seller donates $5000 of the houses selling price to a tax exempt charity. Charity keeps $500 and gives $4500 back to the buyer of the home to use as his down payment.

Charity makes a fortune because tens of thousands are doing it... I think I've got all that right... Anyway, it's still zero down.

[chriswells78]

I got zero down, but I gave 3 years of my life to uncle sam to get it. People are too greedy to give anything to get anything anymore. Brings to mind a Queen song.

[shamaal]

Originally Posted by techieman33

is anyone else getting tired of this bail out crap. I don't think that this country will ever fix it's problems as long as the people living in it know that that the government will bail them out if they get in financial trouble. Was no one else raised that carrying debt was bad? That you shouldn't buy something if you can't afford it? All this leads to is borrowing more money from china and other countries further weakening of the dollar and higher prices to put us even further in to debt.

Well said!

This particular bailout is more political than practical. The administration didn't need congressional approval to bail out the lenders to the tune of $600B. The Congress gets to say they tried to help the borrowers but that mean old President vetoed the bill. Everybody wins.

And the foreclosures go on .....

[Sojourner]

Originally Posted by chriswells78

I got zero down, but I gave 3 years of my life to uncle sam to get it. People are too greedy to give anything to get anything anymore. Brings to mind a Queen song.

I want it all!
I want it all!
I want it all!
And I want it now!