Story here: http://abcnews.go.com/Politics/wi...id=3545005 (only because that's where I saw it this morning on TV).

He says no direct grants, but getting involved with financial institutions to increase "flexibility."

What do you think?

I think that's so interesting, but frustrating to me.

It seems to me that in the rush for the American dream, people are buying houses that are simply out of their budget... or they are signing up for these teaser rates that are screwing them over in the end. It's giving people an out for their own stupidity.

I dunno, I definitely don't know everything, so I could be wrong... but something isn't right with all of this!

We are making it so much easier for people to have zero personal liability.

Quote from TigerStar : We are making it so much easier for people to have zero personal liability.

I completely agree.

Quote from TigerStar : We are making it so much easier for people to have zero personal liability.

is this hearsay? in my circumstances I am nowhere near zero pesronal responsiblity. I am/will be getting sued by the mortgage company for loss on foreclosure which will entail court/lawyer fees for my mortgage company. That is okay in my book, my only argument is, that we did a shortsale on our home and would have only lossed 20k (10k each) if they had accepted the offer. They refused that one.. Then 3 months later another offer which would have only been a 30k loss (15k each) and refused again. When the foreclosure process is complete the interest will continue to climb at about 1100 per month and they will not get anywhere near even the 2nd offer because they simply dont have to care, but just to unload it and then come after us for the difference. Why would you not accept a higher amount on the shortsale with only a 20k loss so that we are not hit with such a high burden of a nonsecured loan in the amount lost? basically not accepting that offer only screwed us more, since in any of the situations previously mentioned occured, they would have still gotten all their money back, and much sooner than later. now interest climbs and everyone on each side is

Quote from TigerStar : We are making it so much easier for people to have zero personal liability.

Quote from cav : is this hearsay? in my circumstances I am nowhere near zero pesronal responsiblity. I am/will be getting sued by the mortgage company for loss on foreclosure which will entail court/lawyer fees for my mortgage company. That is okay in my book, my only argument is, that we did a shortsale on our home and would have only lossed 20k (10k each) if they had accepted the offer. They refused that one.. Then 3 months later another offer which would have only been a 30k loss (15k each) and refused again. When the foreclosure process is complete the interest will continue to climb at about 1100 per month and they will not get anywhere near even the 2nd offer because they simply dont have to care, but just to unload it and then come after us for the difference. Why would you not accept a higher amount on the shortsale with only a 20k loss so that we are not hit with such a high burden of a nonsecured loan in the amount lost? basically not accepting that offer only screwed us more, since in any of the situations previously mentioned occured, they would have still gotten all their money back, and much sooner than later. now interest climbs and everyone on each side is

There are always exceptions, but your situation is not under whatever the POTUS is proposing.

Something similar happened to me, twice, once on my property and one on my dad's property after his death.

Quote from TigerStar : There are always exceptions, but your situation is not under whatever the POTUS is proposing. Something similar happened to me, twice, once on my property and one on my dad's property after his death.

I just see the opposite happening of what has been said about making it easier and not having to take zero responsibility. I feel house foreclosures are actually taking a change similar to bankruptcies. It is a LOT harder to get bankruptcy passed through the court system(s) now too... seems like foreclosures are heading in that same direction. And I agree with this. You made the purchase and no matter the circumstances (for the most part, do realize there are exceptions. Like the example of your father passing) you should be responsible for the debt. I am taking full responsibility for mine.

I have to agree with this post - Things happen...I understand that....but if you find yourself in a situation where your mortgage is higher now due to an adjustable rate and you can no longer afford it then you deserve to lose your home. You knew way back when that someday your rate would adjust and there was no way that it was going to adjust downwards. Way back when you should have found a cheaper house that would be more within your means when the time came for the rate to adjust. I don't care if it was divorce, adjustable rate, more kids, longer hours, etc. These all should have been potential concerns that you planned for when you bought your home. If you failed to plan for them then shame on you , don't expect my tax dollar to bail you out for your lack of planning and responsibility. if you can't afford your home now then you never really could. It's time for a reality check and it's time for you to start living within your means.

Dangit. I was waiting for the rash of foreclosures to buy a really nice house dirt cheap.

Key element of the article:

"U.S. defaults have risen on so-called subprime mortgages to less credit-worthy borrowers"

People overextended themselves.

Last year and before, we even had posters here in the Lounge talking about the benefits of zero down payment and other creative loan schemes and about how getting into the real estate market was just like printing money.

BTW, I once assumed an adjustable mortgage at over 13% back in the Jimmy Carter days of high interest. I've gotta laugh about all this gnashing of teeth because rates are in sub-7% range.

Quote from #sevenstinks : I have to agree with this post - Things happen...I understand that....but if you find yourself in a situation where your mortgage is higher now due to an adjustable rate and you can no longer afford it then you deserve to lose your home. You knew way back when that someday your rate would adjust and there was no way that it was going to adjust downwards. Way back when you should have found a cheaper house that would be more within your means when the time came for the rate to adjust. I don't care if it was divorce, adjustable rate, more kids, longer hours, etc. These all should have been potential concerns that you planned for when you bought your home. If you failed to plan for them then shame on you , don't expect my tax dollar to bail you out for your lack of planning and responsibility. if you can't afford your home now then you never really could. It's time for a reality check and it's time for you to start living within your means.

I don't believe people "knew" the rate would adjust.

We teach our kids math that is "never" used in everyday life situations, while completely and totally ignoring math like:

How to balance a checkbook
Simple interest
Coumpound Interest
Amorization schedules

Hell, I took a personal finance class in college, and it was a joke...

this is mostly smoke and mirrors. Unless he changes laws that say your house cant be foreclosed on if your not paying your mortgage, it wont have much of an impact. Allowing people more time will not have much of an impact.

Quote from cav : is this hearsay? in my circumstances I am nowhere near zero pesronal responsiblity. I am/will be getting sued by the mortgage company for loss on foreclosure which will entail court/lawyer fees for my mortgage company. :

This is your answer...
SCUZZY
If they accepted the offer No Money for the greedy leaches. The longer it plays out the more they get. They don't care about you or the Bank

So much for staying out of the podium. oops, sorry PassionateGray