[Money-matters] Loan payoff by the Feds Money Matters

[Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios]

Well, here it is, the mortgage write down plan I said was coming. HA!. More
tax dollars to the ignorant. They finally figured out what I've been saying
for over a year. They will actually PAY OFF PART OF YOUR MORTGAGE BALANCE!.
And the circle completes itself. 
 
Incredible. (READ BELOW)
 
Money Matters Show # 9 "Real Estate" made in 2006 comes true. I said on that
show over 4 years ago:
 "Don't be surprised if the FEDS just say, don't worry, you don't have to
pay for it, we'll pay your mortgage for you."
How silly is this? What will they pay off next.  Prepare. Prepare. Prepare.
 
Marc
 
 
(Reuters) - The Obama administration on Friday announced a $14 billion
effort to try to stem a rising tide of home foreclosures by giving lenders
incentives to erase some mortgage debt and slash mortgage payments for the
unemployed.
U.S. <http://www.reuters.com/news/us>   |  Barack Obama
<http://www.reuters.com/people/barack-obama>   |  Housing Market
<http://www.reuters.com/subjects/housing-market>   |  Healthcare Reform
<http://www.reuters.com/subjects/healthcare> 
The new aid programs, funded from the $50 billion allocated to housing
rescue under the Treasury Department's Troubled Asset Relief Program, will
also allow borrowers to erase mortgage debt down to a maximum of 115 percent
of their home's value by refinancing through the Federal Housing
Administration.
The plan comes as President Barack Obama is under increasing political
pressure to change his strategy for helping struggling homeowners and stem
the tide of rising foreclosures and is the second major housing initiative
announced in as many months.
Delinquencies on U.S. mortgages rose to nearly 14 percent in late 2009, led
by a sharp increase in seriously overdue home loans held by the most
credit-worthy borrowers, U.S. banking regulators said earlier on Thursday.
The new measures are a shift from the efforts announced last year, which
focused on reducing interest rates for struggling borrowers who got risky
loans.
The latest efforts are targeting unemployed workers and homeowners in places
where home values have plunged across the board and it is increasingly
making more financial sense for homeowners to walk away from their mortgage.
The plan announced in 2009, known as the Home Affordable Modification
Program, has more than a million borrowers who have had their payments
temporarily reduced but only around 170,000 borrowers who have received
permanent modifications.
That ratio has drawn sharp criticism from both Democrats and Republicans on
Capitol Hill, as well as a sharp rebuke from the watchdog overseeing the
$700 billion bailout.
Ohio Democratic Representative Dennis Kucinich who sided with Obama on this
week's landmark healthcare legislation, told the administration official
responsible for overseeing the bailout on Thursday he had not seen any
"bold, new" initiatives for underwater borrowers.
"What are we doing to help those people who owe more on their homes than the
home is worth?" Kucinich asked.
The new efforts include at least three and at most six months of temporary
assistance for jobless workers and incentives for mortgage servicers to
write down part of the principal balance.
Recognizing the difficulties for so-called loan servicers to modify loans
for unemployed workers, the administration's plan aims for lenders to cut
payments on existing loans to 31 percent of a borrowers income.
The principal reduction plan would be administered under HAMP and is modeled
after a principal reduction plan announced this week by Bank of America.
Under pressure from Massachusetts Attorney General Martha Coakley, Bank of
America Corp said on Wednesday it would offer what could be up to $3 billion
in loan forgiveness to about 45,000 troubled homeowners.
 
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