Obama has $75 billion new housing plan

omej · Feb 19, 2009

It looks after his victory on the stimulus plan, Obama has already announced a new $75 billion plan to assist homeowners who are having trouble with their loans.

Honestly, this is just rediculous. These people should not have even thought about buying a house if there was a single shred of doubt in their mind. Even .01% chance of doubt should have been enough.

If I had known Uncle Sam would pick the tab up on my house payments, I would have bought one.

The Parakeet · Feb 19, 2009

The only thing would be all the people who got suckered into the variable interest rate loans. My sister was almost one of them and she'd be facing bankruptcy if my father didn't explain how stupid the idea was.

It's not good for the housing market on the whole though, because it will likely just inflate the home price again. Sorta of like holding a wolf by the ears though. He can't let a bunch of people lose their homes, but he can't just reward them for their bad financial choices.

pingpong12 · Feb 25, 2009

Im just hoping for a fair deal on a good home mortgage modification plan

duray · Feb 25, 2009

I am more concerned about education industry, as I heard the budget cut will go through NYC Board of education.

pingpong12 · Mar 6, 2009

This plan better be changed fast. Only helping people with a mortgage thats up to 105% of the value of their home wont help one home owner in places like California. I really hope they change this fast as it will be money thrown away for nothing.

BrightMind · Mar 16, 2009

I don't have a home right now, but I'm hoping with all these new bills and plans for the housing market that Obama is unveiling, I'll be able to own one soon. I'd love to have my own house, and if I could secure a really low rate on a fixed loan...yes, I would be truly happy about that!

curious · Mar 18, 2009

There are people out there who made what has always been considered a reasonable downpayment, 20%, who now have mortgages larger than their home's value. It wasn't all people getting greedy or being stupid. If you bought a house for $700,000, and took out a relatively small mortgage of $400,000, in some areas the house could easily be worth only $350,000.

The plan is designed to help people who have a chance of holding on to their homes if they get some support. It isn't designed to help people who took out negative interest mortgages or borrowed more than the house was worth when they bought it. There is probably no way to rescue those people anyway.

Glee · Mar 18, 2009

I'm think I'm with the majority on this one. I may be poor as crap, but I don't think the government should be bailing out EVERYONE under the sun. I mean, we are in a recession, aren't we? Unless we find some stash of gold somewhere, how the hell are we going to pay for all these loans. If we're loaning money to loaners who had no money when they took out the first loan... then.... okay I think my brain just exploded.

The Parakeet · Mar 18, 2009

The sub-prime crisis tends to have that effect on people. I had to study the event and I still have trouble wrapping my head around all the little bits.

The one good thing with a well built housing would be that it would suddenly purify a bunch of toxic assets. That would really help the system as a whole.

I just worry about how well this will actually work when put into practice though. Economic policy hasn't exactly been on the mark so far.

deanhills · Mar 20, 2009

The Parakeet said:
I still have trouble wrapping my head around all the little bits.

I have trouble wrapping my head around all of the bail-out plans. None of it is simple and crystal clear, and that in its own is already a bad sign for me. Too much Government interference. What do they know about housing and finance anyway?

curious · Mar 22, 2009

Nobody really knows what is going on because we have never had a situation like this before. The fear is that if nothing is done to keep money moving, and if nothing is done to preserve some wealth and help some people so that there are active participants in the economy, the whole thing will implode. No food on the shelves because no one can pay farmers and if they could no one can pay to have the food shipped. Needing to grow your own vegetables because that's the only way you are going to get any. Hyperinflation where one day an apple is $10, and the next it costs $50. Or deflation, which can be worse. No one buying anything today because it might be cheaper tomorrow. So the system freezes, and we become a sort of subsistence economy.

Obama has $75 billion new housing plan

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