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JTShideler (96.36)

Meet Your New Landlord - The Government

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July 15, 2009 – Comments (4) | RELATED TICKERS: O , R , WEL

According to a Reuters Article Yesterday,

NEW YORK, July 14 (Reuters) - U.S. government officials are weighing a plan that would let borrowers who have fallen behind on their mortgage payments avoid eviction by renting their homes instead, sources familiar with the administration's thinking said on Tuesday.

Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.

Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans, tapping an unused portion of a $50 billion housing aid kitty.

As part of this plan, jobless borrowers might receive a housing stipend along with regular unemployment benefits, the sources said. (Reporting by Patrick Rucker; Editing by Diane Craft)

Okay so who thinks this is a good idea?  Seriously I hope this a joke, now not only will the government guarantee my home loan, if I can't make the payment they will buy my house and let me rent from them for a period of years.

But what is worse is that if they are even considering such a crazy scheme which is supposed to be funded from 50 billion in earmarks they got in the Bail Out bill before that it means that there are probably many more foreclosures on the way.  Which makes perfect sense as unemployment numbers stay up.

No jobs means no mortgage payment, which means greater inventory of homes needed to sell.  Which means faster falling housing prices combined with 0 equity means can't sell, so the only recourse is to foreclose or have the government step in?

Looks like Orwell's 1984 only 25 years later than expected.   

4 Comments – Post Your Own

#1) On July 15, 2009 at 11:19 AM, JTShideler (96.36) wrote:

Reuters Link Obama mulls Rental Option for Some Homeowners, 14 July 2009

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#2) On July 15, 2009 at 11:58 AM, davejh23 (30.55) wrote:

I think most everyone recognizes that there are millions of more foreclosures on the way.  First, experts talk about a "shadow inventory" of already foreclosed homes that banks are holding and not listing for sale.  So, even if existing inventory declines over the summer, it is just an illusion.  Second, Alt-A and other "prime foreclosures" are not expected to peak until 2010-2011.  This doesn't even consider the number that will lose their homes due to unemployment.  We're going to see this shadow inventory dumped on the market, just as millions of more foreclosures are popping up over the next couple of years, and just as interest rates start to rise significantly.  The banks are just holding on for dear life, hoping that Obama will save the day.  Americans don't want to see any more bank bailouts, and the government is recognizing this.  Any help for individual homeowners would be a bank bailout in disguise. 

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#3) On July 15, 2009 at 12:57 PM, Entrepreneur58 (95.27) wrote:

1984 seems to be exactly where we are heading.  The Ministry of Plenty (dedicated to keeping the masses passified with cheap, low quality goods), Ministry of Truth (dedicated to making sure nobody knows what is really going on), Ministry of Peace (dedicated to perpetual war), and Ministry of Justice (dedicated to crushing any rebellion).  Everybody should read that book.

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#4) On July 15, 2009 at 1:08 PM, JTShideler (96.36) wrote:

My favorite line is "Whoever controls the present, whoever controls the present controls the past, whoever controls the past controls the future."

Isn't that so true, how many people learned in school that the New Deal helped pull us out of the depression when in reality it was only the tragedy of WWII that did the task.  How many parents know the curriculum of their kids school?

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