Foreclosures are constantly rising, what is Bush's plan?

[Tim4319]

I find it very interesting that this president bragged a few years back about the rise of home ownership under his administration. Now that home ownership is in the situation it is in now, how come not much is made about that? I know! 911 and the war in Iraq is the blame.


<<snip>>
Home foreclosures in July rose 93 percent over the same month a year earlier, according to RealtyTrac, continuing a trend that is forcing tens of thousands of American families out of their homes.


<<snip>>
Through lax regulation of lenders and easy credit policies, they helped drive a housing boom that for a while gave a record percentage of Americans ownership of their own homes, with minority home ownership exceeding 50 percent for the first time in history. In his 2004 speech accepting the GOP nomination for president, Bush claimed credit for that accomplishment, telling delegates that "thanks to our policies, home ownership in America is at an all-time high."

[rucky]

1. HUD announced an FHA plan for those facing foreclosure...

it will only serve about 250K of about 5 million in the situation. Other than that, it's actually a pretty good way to get people some relief from these ridiculous boutique loans and into solid Government Insured ones. This will put the investors, brokers and the homeowners (somewhat) at ease.

Won't give Bush credit for this, seeing as this solution was established by HUD long before there was even a problem, but this is the proper "exit strategy" to lessen the impact of the mortgage crisis. These FHA loans have actually been around for years, but with the extra paperwork, brokers and bankers have never really offered them(about 6% of all mortgages are FHA) - especially when they can crank out 3-5% yield spread (profit margin off loan amt) off a subprime loan and hardly have to process any paperwork (even the underwriting was automated!). Now the ones that are left are clamoring to register as FHA lenders so they can stay in business.

http://www.hud.gov/news/release.cfm?content=pr07-123.cfm

[Demeter]

2. Paraguay, It Seems

Cheney probably already told W he isn't welcome in Dubai.

[backscatter712]

3. Simple!

Issue multi-billion dollar bailouts for the banks, mortgage companies, developers, real estate magnates, and other rich buddies.

Use the bailout money to tear down the shitty homes, build McMansions and luxury condos, and effectively gentrify the entire country.

The working and middle class former-homeowners get hung out to dry.

Brilliant!

[Disturbed]

5. He plans to buy up a few thousand houses himself after he

leaves the WH to replinish his coffers?

[radfringe]

4. to make sure everything we own

is and will be owned by his ownership society - his base, the have's and havemores

[Cerridwen]

6. Feudalism...

just a guess.

[alfredo]

7. A capital gains tax cut.

[OzarkDem]

8. Bush's plan

bails out the banks and lenders, but would help only about 10% of homeowners in trouble.

[flashl]

9. They did it to create money out of thin air

They are not talking about the elephant in the room derivatives generated from the mortgages with no down payment or credit check. The homeowners who received exotic loans are trapped. They were given loans to create mad money with 10:1 or 20:1 ratios for the subprime mortgage market.

[BlooInBloo]

10. He was hoping the crash wouldn't happen until AFTER he was gone...

... so republicans could blame it on the new Democratic President.