Busted: Bankers and The Global Economy

July 29, 2008

Foreclosure: Minefield of Saving Your Skin

The provisions touted by government lawmakers is projected to be a real help for honest home buyers throughout the United States. Clearly, the rules do not assist speculators or business investors. Still, the “home buyer bailout” may not help as many American citizens or prevent as many foreclosures as government authorities claim.

Qualified borrowers must live in their homes with loans issued between January 2005 and June 2007, while spending at least 31% of their gross monthly income on mortgage debt. If you qualify on these standards, you can note two check marks.

Further, home buyers must prove that they cannot or will not be able to keep paying their existing mortgage while signify that they are not deliberately defaulting on their home loan to obtain lower payments. Whether a home buyer is in a current state of default doesn’t matter. Proving circumstances does. If you qualify on these standards, you can note another two check marks.

Home equity lines of credit must be retired. If you qualify, make another check mark.

Total loan debt cannot exceed (more…)

May 12, 2008

Paper Tiger Taxpayer Bailout Plan at 1.7 Billion

Filed under: banking — Tags: , , , , , , , , , — digitaleconomy @ 9:12 am

The taxpayer cost of the mortgage refinancing should be limited to about $1.7 billion according to U.S. government sources. The problem is that few that qualify will actually be helped.

The proposal, authored by House Financial Services Chairman Barney Frank, passed the House with a 266-154 margin, with 39 Republicans joining virtually all Democratic House members to support the measure. The Bush Administration and many members of Republican leadership oppose the bill and are proposing other measures.

Congress feels that the country should be reassured by this paper tiger measure. The reality of the plan dictates otherwise. Very few at-risk homeowners will be able to get help. Because of the limited scope (more…)

April 3, 2008

Senate Works to Assist Homebuyers

mortgage-foreclosure.jpgSenate Democrats and Republicans start debating a bipartisan $15 billion housing relief package today that is expected to go to vote early next week. According to the Senate, the funding package has new measures to make loan by the FHA more accessible, funding to assist borrowers to refinance unaffordable loans and fund a business tax break for homebuilders. A new alteration in tax code will allow for a new tax credit and deduction for homeowners. The plan also includes some generic provision to boost neighborhoods with properties in foreclosure.

The Democrats pushed for a change in bankruptcy law that would allow judges to lower the value of residential mortgage debts which is expected to be added as an amendment to bankruptcy code.

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