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Monday, March 8, 2010

Cash for Closing - Upside down on your house? Obama to the rescue...sort of.

Short-Sale Program to Pay Homeowners to Sell at a Loss

This makes perfect sense if you live in LaLaLand with the people in the Obama administration. To the rest of us here on planet Earth, this is just another in a string of bad policies based on out-dated and disproven theories.

If my math is correct, the government is now proposing to give up to $3,500.00 of our money to pay banks and home owners to agree to sell these houses for less than the current values of the loans on them (short sell). At least some of the TARP bailout was paid back, this is just a handout with no expectation of repayment or remuneration. How exactly does this help the housing industry or market?

According to recent reports Fannie Mae and Freddie Mac already own half of the mortgages in the U.S., and that means that those mortgages are effectively owned by the American taxpayer. So, are we paying ourselves to take a loss? On what planet does that make sense?

Is there any rational thought left in Washington, D.C.?

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