Weekly Address: It’s Time for Congress to Act to Help Responsible Homeowners

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President Obama continues his call for a return to American values, including fairness and equality, as part of his blueprint for an economy built to last.


WEEKLY ADDRESS: It’s Time for Congress to Act to Help Responsible Homeowners
http://www.whitehouse.gov/the-press-office/2012/02/04/weekly-address-it-s-time-congress-act-help-responsible-homeowners

WASHINGTON, DC—In this week’s address, President Obama continued his call for a return to American values, including fairness and equality, as part of his blueprint for an economy built to last. This is why the President is sending Congress his plan to give responsible homeowners the chance to save thousands of dollars on their mortgages by refinancing at historically low rates without adding a cent to the deficit. The housing crisis has been the single largest drag on the recovery, and although the Administration’s actions have helped responsible homeowners refinance their mortgages and stay in their homes, Congress must act now to do more to continue assisting homeowners and the economy. President Obama asks all Americans to tell their elected officials to pass this plan to keep more families in their homes and more neighborhoods thriving and whole.

more at link

[ffr]

1. It would help too if...

there was an incentive for homeowners that didn't refinance AND either continue to pay their mortgages down or have paid their mortgages off. The fact nobody's giving consideration to these responsible homeowners is really a disincentive for future generations to live responsibly and within their means.

[Phlem]

4. +1

-p

[Skittles]

2. it is actually WAY past time

[Atypical Liberal]

3. It's too late for refinancing help.

I refinanced last year under the HARP program. Of course it reset my mortgage back to 30 years. We were only 4 years in so it was no that big a deal. It saved us about $200 a month.

But the fact of the matter is, our house is currently worth $90,000 less than we owe on it. If I was a business, I would just cut my losses and go bankrupt and stop paying for it. We have seriously considered doing it. If I lose my job, we will have no choice but to do it.

Refinancing is no longer going to really do much. What is now needed is principle modification to make the amount owed in line with what the properties are worth. By putting money into the BOTTOM of the system instead of at the TOP, as is usual, you will:

Keep people in their homes.
Allow people to be able to sell their homes and no longer be trapped in them, allowing them to move to pursue jobs.
Increase disposable income of families which will drive the consumer-spending-driven economy.

Because otherwise more and more homeowners are going to do "strategic defaults" and simply walk away from their homes. They are going to take a bath on their credit, which is going to hammer the economy when they can't buy on credit anymore, and the banks are going to take a bath holding properties that can't sell.