Obama to refinance underwater mortgages

[Admiral Yi]

The story on CNN was short on details.  AFAICT, the refinancing is going to be offered by Freddie and Fannie (i.e., you and me) and the limit on mortgage/home value is going to be raised to 175%.

That should be worth a vote or two in Michigan and Nevada.

Early estimate is that 9 million households would qualify.

[HisMajestyBOB]

We should instead cut taxes for the wealthy and corporations. No need to spend money on these (largely middle-class) families.

[derspiess]

 

[MadImmortalMan]

Don't know if this is the same program.

HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers.

In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home.

The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Standard FHA underwriting guidelines apply, and the sale must be for the full amount of the current list price.

The $100 down payment incentive program has been approved for two of HUD's four national regions – the regions managed by the Denver Homeownership Center and the Atlanta Homeownership Center. HUD homes in the states listed, as well as the Caribbean are currently eligible for the program.

Denver Homeownership Center's Jurisdiction:

    * Arkansas
    * Colorado
    * Iowa
    * Kansas
    * Louisiana
    * Missouri
    * Minnesota
    * Montana
    * Nebraska
    * New Mexico
    * North Dakota

    * Oklahoma
    * South Dakota
    * Texas
    * Wisconsin
    * Wyoming
    * Utah

Atlanta Homeownership Center's Jurisdiction:

    * Alabama
    * Florida
    * Georgia
    * Kentucky
    * Illinois
    * Indiana
    * Mississippi
    * North Carolina
    * South Carolina
    * Tennessee
    * Caribbean

HUD's $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home. The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan.

Matt Martin, CEO of Matt Martin Real Estate Management (MMREM), says this is one of the most exciting features of the new incentive program and should drive a lot of exposure to FHA's 203k offering.

MMREM is under contract with HUD to assist with disposition sales of its repossessed homes. MMREM handles properties throughout 16 states, or about a third of HUD's REO portfolio.

With an FHA 203k loan, "buyers can find a property that needs some TLC, fix it up however they want to, and finance the whole thing for $100," Martin explained.

"MMREM is excited to work with this recent initiative, in a way that it supports putting HUD homes back into the hands of homeowners," Martin said.

In addition to $100 down instead of FHA's typical 3.5 percent down payment, HUD says it will also cover up to 3 percent of the closing costs in most cases.

[MadImmortalMan]

How far can you leverage a single benjamin? 

[MadImmortalMan]

Ah, this must be the one you meant:


http://www.huffingtonpost.com/2011/10/24/foreclosure-plan-obama-harp-refinancing_n_1028554.html

[Ed Anger]

My former hometown (Fairborn Ohio) has been using federal grant money for a home and neighborhood revitalization program. Buying up such gems as a two story house that had no stairs to the 2nd floor and other foreclosure bargains. They ended up demolishing most of those and building new homes. Which stick out like a sore thumb in neighborhoods of mostly 50's housing.

[Siege]

Why my tax money have to be used to bail out losers?

Fuck no.

[DGuller]

Why my tax money have to be used to bail out losers?

Fuck no.

[grumbler]

Why my tax money have to be used to bail out losers?

Fuck no.

Eh.  It's a fraction of what we spend on the losers of Israel, and doesn't piss off anyone important.

Won't do any more good than propping up Israel for a few more decades past its shelf-life, but we are talking tax dollars, and so minimizing the harm they do is what is important, not maximizing the benefit.

[HisMajestyBOB]

I have an idea:
How about tax cuts and debt relief for the middle class?
Surely we could get both the Dems and GOP to support that!

[PJL]

The limit is pretty useless, I mean 175% mortgage / home value is just insane. Even at the height of the bubble here, 125% was pretty much the max. Nowadays, you'd be lucky to get more than 90%.

[Admiral Yi]

I have an idea:
How about tax cuts and debt relief for the middle class?
Surely we could get both the Dems and GOP to support that!

How about we give everyone in the US a million dollars and charge it to the deficit?

[DGuller]

I have an idea:
How about tax cuts and debt relief for the middle class?
Surely we could get both the Dems and GOP to support that!

How about we give everyone in the US a million dollars and charge it to the deficit?

I'm fine with that.

[MadImmortalMan]

I have an idea:
How about tax cuts and debt relief for the middle class?
Surely we could get both the Dems and GOP to support that!

How about we give everyone in the US a million dollars and charge it to the deficit?

Would have been cheaper than what we did.