Part of Obama's mortgage plan
 

In the vice presidential debate, Sen. Joe Biden said that "what we should be doing now — and Barack Obama and I support it — we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal you owe."

To get this bill passed, Obama made a lot of phone calls — particularly to members of the Congressional Black Caucus, including caucus chief Rep. James Clyburn — assuring this would happen.

Those paying their mortgages on time don't get that break.

Rep. Elijah Cummings said Obama told him that, if elected president, he would direct a Treasury Department official to work with homeowners in foreclosure to restructure their loans. Cummings said Obama also told him he'd seek changes in bankruptcy laws allowing judges to reduce what borrowers owe on their home loans.

Section 110 of the rescue legislation has the Orwellian title of "Assistance to Homeowners" — but only for the deadbeats.

It describes somebody called a "Federal property manager" who "holds, owns or controls mortgages, mortgage-backed securities, and other assets secured by residential real estate."

Section 110 speaks of "modifications" that this manager can make to these mortgages including not only the reduction of interest rates but the reduction of loan principal.

Not only is Uncle Sam now the world's largest landlord. He can also arbitrarily set the value of property and the amount owed on it at will, thus distorting the free market.

The vast majority of homeowners who pay their mortgages on time get the shaft. They're the ones who'll take up the others' slack.

Why? And why is the Community Reinvestment Act still law?

http://www.ibdeditorials.com/IBDArti...08185654524278

Re: Part of Obama's mortgage plan
 

Wonder what he plans to do if everyone gets fed up with it and just stops paying their mortgages? Will he bail them ALL out or still pick and choose?

Incredible!

Re: Part of Obama's mortgage plan
 

So are you saying someone who bought a house for $100,000 and is behind can get the principle down to let's say $50,000 while I who am not behind in my current $100,000 will have to continue paying for the full price of my home?

If they can not afford paying the agreed orginal house maybe they need to walk away and rent.

Re: Part of Obama's mortgage plan
 

From what I understand, this mess can be traced back to Jimmy Carter and some other do gooders who felt like some people were being discriminated against because they were not home owners. So mortgages were granted to people who did not qualify so they could have a home of their own. Then, since loans were being given out to unqualified buyers, the homes being sold were appraised at higher values and folks were encouraged to buy bigger homes. Folks were encouraged to go into deeper and deeper debt and the builders, real estate agents, appraisers, and loan companies all got into a frenzy. Some people took out loans with adjustable rates and did not even realize what they had signed up for. Now the bubble has burst.