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  • More Proof White House Mortgage Plan Won't Work

    san_francisco090223

    President Barack Obama’s mortgage bailout plan is predicated on the idea that by forcing lenders to rework some mortgages, there will be less foreclosures and housing prices will not keep falling. Problem is, as soon as you start setting standards to determine which mortgagees qualify, many homeowners won’t qualify for the federal aid … especially in the areas hardest hit by the housing bubble. So the San Francisco Chronicle reports:

    More than 90 percent of Bay Area mortgage holders cannot qualify for the low-cost refinances included in President Obama’s housing rescue package, according to an analysis of loan data from real estate service Zillow.com.

    “The Bay Area is being hit by the fact that it’s high-priced, and therefore the loans that were made around the peak years were not conforming (meaning they were above $417,000), and secondly, that (the housing market) has gone into such sharp decline that many homes are underwater by more than 5 percent,” said Stan Humphries, vice president of data and analytics for Zillow in Seattle.

    With 90% of mortgage holders not qualifying for help, Obama’s mortgage bailout plan has no prayer of working in the Bay Area. And the situation is not much better in the other mortgage hot spots throughout the country. Overall, only 26% of mortgage holders nation wide would qualify for the program according to Zillow. Other housing bubble epicenters like Florida, Las Vegas, and Phoenix also have seen housing values drop too far for homeowners to qualify for Obama’s program. With so few qualifying for help, this plan has no hope of working.

    Posted in Ongoing Priorities [slideshow_deploy]

    5 Responses to More Proof White House Mortgage Plan Won't Work

    1. Ozzy6900, CT says:

      The Obama Administration has had this explained to them many times but his Administration still continues to believe that funding failure will produce success.

    2. ra,ohio says:

      at Michelle Malkin's site there is a post about a bus driver that bought a $800,000 house. and now can't pay for it.

      I would submit that ignorance can be remedied, stupid goes right to the bone.

      We need, (and several states have already mandated this), that in order to graduate high school, you need to take a PERSONAL FINANCE course. GREAT IDEA !!!

      But, some states have claimed that that would put an additional burden on the teaching staff, thereby requiring more money from the tax-payer.

      Oh the pain.

    3. ra,ohio says:

      OZZY… I think they are systematically trying to destroy the fabric of the core financial system of this country, to obtain more power, and to try to limit the response of the American people.

      We the people have to go to the polls in two years and vote the B's out.

      That's the only message we have.

      ra

    4. ra,ohio says:

      House Payments, ?

      cash owed ?

      liabilities ?

      naw naw naw

      WE ,(the US TAX PAYER) are funding all the crooks in congress and the senate, and the president, and his family and all their health care for as long as they live.

      Barack said during his campaign that the American people would be availed of the health benefits of the congress, and the President. It's called Universal Health Care. They get the best, because WE PAY FOR IT !

      The health benefits of congress are payed for by your tax $$$

      He is a magician, (watch this while I do this, and you will be surprised). The diversion tactic is in play here.

    5. Pingback: Deconstructing Our Republic | Sentinel Radio

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