$500 Million Dollar Bailout Extended to US Mortgage Borrowers - AfroChat - African American

Meroe · July 26th, 2007, 07:29 PM

Several states have set or are about to set a multi-million dollar bailout plans for mortgage borrowers who are in danger of losing their home. Will the money come from taxpayer pockets? Of course it will (shades of the S&L bailout) and that means that even those of us smart enough not to get caught up in the real estate speculation fever are still gonna pay for the cost of it all as it collapses. My mortgage recently increased significantly. I called my lender to find out why. I was told mortgage companies analyze the borrowers loan docks once a year for tax purposes although I have an impound account on my property. I was informed the anticipated yearly tax was under the the projected amount which means my lender added taxes onto my monthly mortgage. I was given to choice to either pay the $1500 dollars in full or pay an additional hundred and twenty dollars on top of my regular mortgage. I had no choice. Either way these people get your money one way or another. I don't mind paying taxes for public services. We all use public services in one form or another. But I want to see some results which I haven't seen out here in this desert. I happen to believe my taxes are being used for something other than what they're suppose to be used for (probably for more bombs and bullets to kill people in Iraq). But of course I'll never find out the truth. So if you're an homeowner and your taxes increase this may be one of several excuses you'll get from your mortgage company.

http://efinancedirectory.com/articles/$500_Million_Dollar_Bailout_Extended_to_US_Mortgag e_Borrowers.html

$500 Million Dollar Bailout Extended to US Mortgage Borrowers
Jul 24, 2007 -- Several different US states have or are set to announce multi-million dollar bailout plans for mortgage borrowers who are in danger of losing their home. Will the money come from taxpayer pockets?

Should borrowers who signed loan documents be held accountable for their actions? While some would answer with a resounding yes, lobbyists have convinced several US states that the answer is no. As a result, states like Massachusetts, New York, and Ohio will collectively extend nearly $500 million to delinquent homeowners. Pennsylvania, New Jersey, and Maryland have similar plans in the works.

State Bailout in $ Borrowers to be Helped
Massachusetts $250 million 1,000
New York $100 million 500
Ohio $100 million TBA
Pennsylvania TBA TBA
New Jersey TBA TBA
Maryland TBA TBA

*TBA (To Be Announced)

The Bailout Debate

There has been some frustration with the way the federal government ignored their responsibility to protect borrowers in the past and much concern as to how they will handle the present situation.

It is this frustration and concern that has prompted several states to act now in an attempt to battle the surge of foreclosure activity that is sweeping the nation. But some question the justification, saying that if the borrowers had acted more responsibly to begin with, they wouldn't be in danger of losing their home now.

There is also the issue of who the bailout will be assisting. In helping the borrowers, the mortgage bailout plans are also helping the lenders who made these bad loans and the investors who backed them. This isn't an ideal situation because it is the risk of loss that drives the financial biz and keeps everyone involved in check. Take that risk away with a bailout, and you lose a critical component of the lending system.

But because lenders are posed to foreclose on $1.8 million homes this year, people are scared. The big fear is that the foreclosures will contaminate entire neighborhoods, cause home values to plummet, and inevitably affect equity borrowing and consumer spending

Where is the Bailout Money Coming From?

While it is true that foreclosures can put downward pressure on a market-particularly if that market is already struggling, it seems downright unfair for taxpayers to have to fund a bailout for borrowers and lenders who were willing to sign documents and accept the risk that comes with borrowing and lending such huge sums of money.

So how will states fund their mortgage bailout plans?

Every state is structuring their mortgage bailout plan differently. Massachusetts plans to raise $250 million by selling bonds to private investors. Ohio will turn to their state's housing agency to support their own loan product. Pennsylvania will also be using bonds, which will be financed with multi-million dollar reserve funds.

Thus far, no state has plans to use taxpayer dollars to fund the mortgage bailouts, but given the current state of things, it would not be surprising if a taxpayer proposal rears its ugly head in the near future.

Related Articles
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Federal Reserve Urged to Crack Down on Mortgage Originators
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MadameX · July 26th, 2007, 09:29 PM

Hopefully, this bailout will give relieve to some Brothas and Sistas victimized by predator lenders.

Meroe · July 26th, 2007, 11:22 PM

Absolutely, sister Madame X. If anybody needs a bailout it's us. Not only do we pay higher property taxes due to unfair redlining practices but are twice as likely to be solicited by predatory lenders. A couple I know got a loan from a company that went under after a few years in business. Now they're stuck with this astronomical note. I try to tell my friends if a loan sounds to good to be true it usually is. And if possible stay away from adjustable rate mortgages...it's nothing but trouble. I found out the hard way a few years back. Never again will I get an adjustable rate. Hopefully this money will be allocated toward people who really need it but I suspect the funds will be diverted for stupid stuff like more bombs for Iraq.

MadameX · July 28th, 2007, 08:34 AM

Quote:

Originally Posted by Meroe

Hopefully this money will be allocated toward people who really need it but I suspect the funds will be diverted for stupid stuff like more bombs for Iraq.

The operative word here is hope especially when you see how its hurting folks in the inner city. However, we know how the politics run. Of course, both political parties have candidates on the trail so you never know what may happen in the US.

Istlota · July 28th, 2007, 10:35 AM

You are correct in your preception that this bailout money is not free money. It is a case of money being taken out of one of the taxpayer's pockets and put into another.

The states will come up with this money by "selling" bonds -- which means they are going to borrow the money because Lord knows they ain't got that kind of cash sitting in a bank somewhere. But, for them to take out a loan, just as when you and I try and get a loan, they will need to have collateral. The collateral will be Federal Reserve funds. But, the Federal Reserve only prints and steals money, they do not earn money in any sort of legal manner. The funds at the Federal Reserve (which is not federal at all, but a private gang of bankers), are, on paper anyway, money borrowed from sources such as China or the Saudis.

But, the Fed Res insists that sources such as China and the Saudis loan us funds based on the USD -- which the Fed Res can print up anytime it feels like it. Note that the USD has not been backed by gold for many years. The Fed Res then turns around and prints up some more USD -- monopoly money - which it uses to pay back interest to the Chinese and the Saudis.

The Chinese and the Saudis make out by capitalizing on the make believe value of the USD. And, the Fed Res makes out by collecting interest from various state and federal agencies -- which is where ALL of our tax dollars actually go -- on the pretense that it is using our taxes to pay interest to the investors (sources such as the Chinese and the Saudis) who loaned the US government money. But, in truth, the bankers at the Fed Res just pocket our tax dollars and print more to give to the Chinese and the Saudis.

This is nothing more than an elaborate pyramid scheme, with the Fed Res bankers sitting pretty in the cornerstone [the holy of holies of their false religion based on gross materialism - Rev. 13:17], the Chinese and Saudis in the middle [Rev. 18:15], and with John Q. Public at the bottom paying for everything.

Fed - The Federal Reserve (Fed) Steals Money From American Citizens

Wake up, Children of Zion.

July 26th, 2007, 07:29 PM	#1 (permalink)
Meroe Afro Resident Emerging Voice Join Date: Jan 2007 Location: Riverside, California Gender: Posts: 257 Thanks: 114 Thanked 159 Times in 89 Posts Rep Power: 23 Credits: 2,931	$500 Million Dollar Bailout Extended to US Mortgage Borrowers Several states have set or are about to set a multi-million dollar bailout plans for mortgage borrowers who are in danger of losing their home. Will the money come from taxpayer pockets? Of course it will (shades of the S&L bailout) and that means that even those of us smart enough not to get caught up in the real estate speculation fever are still gonna pay for the cost of it all as it collapses. My mortgage recently increased significantly. I called my lender to find out why. I was told mortgage companies analyze the borrowers loan docks once a year for tax purposes although I have an impound account on my property. I was informed the anticipated yearly tax was under the the projected amount which means my lender added taxes onto my monthly mortgage. I was given to choice to either pay the $1500 dollars in full or pay an additional hundred and twenty dollars on top of my regular mortgage. I had no choice. Either way these people get your money one way or another. I don't mind paying taxes for public services. We all use public services in one form or another. But I want to see some results which I haven't seen out here in this desert. I happen to believe my taxes are being used for something other than what they're suppose to be used for (probably for more bombs and bullets to kill people in Iraq). But of course I'll never find out the truth. So if you're an homeowner and your taxes increase this may be one of several excuses you'll get from your mortgage company. http://efinancedirectory.com/articles/$500_Million_Dollar_Bailout_Extended_to_US_Mortgag e_Borrowers.html $500 Million Dollar Bailout Extended to US Mortgage Borrowers Jul 24, 2007 -- Several different US states have or are set to announce multi-million dollar bailout plans for mortgage borrowers who are in danger of losing their home. Will the money come from taxpayer pockets? Should borrowers who signed loan documents be held accountable for their actions? While some would answer with a resounding yes, lobbyists have convinced several US states that the answer is no. As a result, states like Massachusetts, New York, and Ohio will collectively extend nearly $500 million to delinquent homeowners. Pennsylvania, New Jersey, and Maryland have similar plans in the works. State Bailout in $ Borrowers to be Helped Massachusetts $250 million 1,000 New York $100 million 500 Ohio $100 million TBA Pennsylvania TBA TBA New Jersey TBA TBA Maryland TBA TBA *TBA (To Be Announced) The Bailout Debate There has been some frustration with the way the federal government ignored their responsibility to protect borrowers in the past and much concern as to how they will handle the present situation. It is this frustration and concern that has prompted several states to act now in an attempt to battle the surge of foreclosure activity that is sweeping the nation. But some question the justification, saying that if the borrowers had acted more responsibly to begin with, they wouldn't be in danger of losing their home now. There is also the issue of who the bailout will be assisting. In helping the borrowers, the mortgage bailout plans are also helping the lenders who made these bad loans and the investors who backed them. This isn't an ideal situation because it is the risk of loss that drives the financial biz and keeps everyone involved in check. Take that risk away with a bailout, and you lose a critical component of the lending system. But because lenders are posed to foreclose on $1.8 million homes this year, people are scared. The big fear is that the foreclosures will contaminate entire neighborhoods, cause home values to plummet, and inevitably affect equity borrowing and consumer spending Where is the Bailout Money Coming From? While it is true that foreclosures can put downward pressure on a market-particularly if that market is already struggling, it seems downright unfair for taxpayers to have to fund a bailout for borrowers and lenders who were willing to sign documents and accept the risk that comes with borrowing and lending such huge sums of money. So how will states fund their mortgage bailout plans? Every state is structuring their mortgage bailout plan differently. Massachusetts plans to raise $250 million by selling bonds to private investors. Ohio will turn to their state's housing agency to support their own loan product. Pennsylvania will also be using bonds, which will be financed with multi-million dollar reserve funds. Thus far, no state has plans to use taxpayer dollars to fund the mortgage bailouts, but given the current state of things, it would not be surprising if a taxpayer proposal rears its ugly head in the near future. Related Articles Mortgage Industry Spends $210 Million to Woo Congress In an effort to determine why mortgage foreclosure rates are so high, advocacy group Common Cause recently completed a study, and in turn a shocking report. According to the group's findings, a large portion of the blame may lie with the mortgage industry, which spent a total of $210 million on lobbying and campaign contributions in an effort to deter new lending laws. Federal Reserve Urged to Crack Down on Mortgage Originators The subprime meltdown has led to a great deal of finger pointing. On Monday, a group of senators did some pointing of their own and urged the Fed to use existing authority to restrict some of the mortgage loans being offered by both banks and non-banks. Easy Credit Leads to Mortgage Crisis The downfall of subprime lending seems to be coming to a head as high risk loans push more than 20 lending companies into bankruptcy. Lenders everywhere are tightening their regulations, but some worry it may be too little too late. Incidents of Mortgage Fraud on the Rise With the housing market in bad shape, there are many homeowners out there looking for help. Unfortunately, there are a lot of scammers out there as well. Incidents of mortgage fraud are on the rise and are unlikely to abate anytime soon. Private Mortgage Insurance Rates Indicate Bubble Risk The expansion of the Private Mortgage Insurance industry has helped to funnel millions of potential homebuyers into the housing market. An examination of evolving PMI rates indicates how the mortgage insurance industry has affected the housing market in the past and how new changes indicate bubble risk. Rising Mortgage Delinquencies Could Squash the American Dream Mortgage delinquencies and foreclosures are on the rise across the country. The increase has been enough to prompt the government into considering stricter banking regulations. While many experts believe these regulations are necessary to decrease the amount of risk being taken on by homeowners, others worry that stricter rules could squash the dream of homeownership for many Americans. Get the Right Mortgage for your Financial Situation There are dozens of mortgage options to choose from. Most are grouped into three main categories: fixed rate, adjustable rate and interest only. Credit Unions Launch Mortgage Program for Lower-Income Homebuyers Consumers making the median or below average income for a given region can now qualify for a home loan with an interest rate up to one percent lower than average ARM.

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July 26th, 2007, 09:29 PM	#2 (permalink)
MadameX Afro Resident Join Date: Aug 2005 Location: Center Of The Universe Gender: Posts: 4,486 Thanks: 838 Thanked 250 Times in 213 Posts Rep Power: 56 Credits: 20,556	Hopefully, this bailout will give relieve to some Brothas and Sistas victimized by predator lenders.

July 26th, 2007, 11:22 PM	#3 (permalink)
Meroe Afro Resident Emerging Voice Join Date: Jan 2007 Location: Riverside, California Gender: Posts: 257 Thanks: 114 Thanked 159 Times in 89 Posts Rep Power: 23 Credits: 2,931	Absolutely, sister Madame X. If anybody needs a bailout it's us. Not only do we pay higher property taxes due to unfair redlining practices but are twice as likely to be solicited by predatory lenders. A couple I know got a loan from a company that went under after a few years in business. Now they're stuck with this astronomical note. I try to tell my friends if a loan sounds to good to be true it usually is. And if possible stay away from adjustable rate mortgages...it's nothing but trouble. I found out the hard way a few years back. Never again will I get an adjustable rate. Hopefully this money will be allocated toward people who really need it but I suspect the funds will be diverted for stupid stuff like more bombs for Iraq.

July 28th, 2007, 10:35 AM	#5 (permalink)
Istlota Afro Resident Join Date: Dec 2006 Location: Florida Gender: Posts: 837 Thanks: 109 Thanked 364 Times in 232 Posts Rep Power: 47 Credits: 6,444	You are correct in your preception that this bailout money is not free money. It is a case of money being taken out of one of the taxpayer's pockets and put into another. The states will come up with this money by "selling" bonds -- which means they are going to borrow the money because Lord knows they ain't got that kind of cash sitting in a bank somewhere. But, for them to take out a loan, just as when you and I try and get a loan, they will need to have collateral. The collateral will be Federal Reserve funds. But, the Federal Reserve only prints and steals money, they do not earn money in any sort of legal manner. The funds at the Federal Reserve (which is not federal at all, but a private gang of bankers), are, on paper anyway, money borrowed from sources such as China or the Saudis. But, the Fed Res insists that sources such as China and the Saudis loan us funds based on the USD -- which the Fed Res can print up anytime it feels like it. Note that the USD has not been backed by gold for many years. The Fed Res then turns around and prints up some more USD -- monopoly money - which it uses to pay back interest to the Chinese and the Saudis. The Chinese and the Saudis make out by capitalizing on the make believe value of the USD. And, the Fed Res makes out by collecting interest from various state and federal agencies -- which is where ALL of our tax dollars actually go -- on the pretense that it is using our taxes to pay interest to the investors (sources such as the Chinese and the Saudis) who loaned the US government money. But, in truth, the bankers at the Fed Res just pocket our tax dollars and print more to give to the Chinese and the Saudis. This is nothing more than an elaborate pyramid scheme, with the Fed Res bankers sitting pretty in the cornerstone [the holy of holies of their false religion based on gross materialism - Rev. 13:17], the Chinese and Saudis in the middle [Rev. 18:15], and with John Q. Public at the bottom paying for everything. Fed - The Federal Reserve (Fed) Steals Money From American Citizens Wake up, Children of Zion.