If you were happy about your tax dollars bailing out delinquent homeowners’ first mortgages, you’re gonna love this!
The Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors.
Under the expanded plan, some homeowners could see their payments fall significantly and the interest rate on their second mortgage pushed down to 1 percent. The announcement comes nearly two months after the administration launched the housing program, called Making Home Affordable. While officials said some borrowers have already received help, the foreclosure rate is rising and it could be months before the program begins to have an impact.
The new efforts address, in part, criticisms from consumer advocates that the administration’s housing plan did not go far enough and that borrowers still face too many barriers to receiving help.
“Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall. Every step we take forward is done with that imperative in mind,” Treasury Secretary Timothy F. Geithner said in a statement.
I’m sure you know people like these “responsible homeowners” Timothy Geithner spoke of. They’re middle class Americans who spent money like there was no tomorrow. Maybe at the time you wondered: “How can they afford that huge addition to their home? They don’t make much more than I do, and I certainly can’t afford a new pool or exotic vacations.” Well, the answer to your question would be: “You weren’t using your home as an ATM machine to finance a lifestyle that you cannot afford.” You should congratulate yourself for living within your means.
But now, thanks to Dear Leader, you get to foot the bill for that “responsible homeowner” who wasn’t quite as frugal as you were. Lucky you!
H/T HotAir
I could start screaming and never stop. *I* was uber-responsible, my home is now worth half what it was when I bought it (ensuring it was a loan I could REPAY) and all of these programs find me ineligible. I am so upside down on the value, refinancing isn’t even an option just to free up some cash to pay down debt. AAAAAARRRRGHGHGHGH! Sometimes I get really tired of being a Girl Scout.
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