Homeowner rescue awaits President Bush's signature

What about the millions who have already los ttheir homes? I hope the government isn't looking to payt the lenders for those properties. It's like they win on two fronts....

What about the fact that I don't want taxpayer money going to help these people? I'm not sorry these people bought houses they couldn't afford. Its not the government's fault that these people can't read a mortgage contract. Its not the government's job to give loans to people that have already defaulted on a previous loan (that's bad business sense).

Houses were way overpriced and people bought them on loans they couldn't afford. Was the lending industry deceptive, certainly. But they made their bed so now they have to lie in it. There are still so many sub-prime commercials out there so they have not learned their lesson. Let the companies that gave bad loans fall so that the responsible companies survive and thrive. I am sick of the government bailout wave. Let the markets correct themselves and let the people learn to live within their means.

The millions that have lost their homes have learned their lesson (i hope). so what use it is to help these other people keep making mistakes.

"The bill sets a cap of $625,000 on the loans that Fannie Mae and Freddie Mac may buy and the FHA may insure." Up to $625,000 is ridiculous! People who own a home greater than $400k are not your typical American family, I'm sorry, and a lot of people would even say above $250k is not "normal" America. I heard a woman on NPR saying that she had a home worth about 700k and her & her husband made $20k a month in income....that's $240k a year, and she thought she needed a govt bailout. That probably puts her family in the top 1-2% income bracket in America. I see this bill as just a huge loss to taxpayers and doing no good for our economy.

Lets just increase the US debt even more on risky ventures like this, why not???

What are we doing bailing out people who overspent?

I've got too much on my credit cards? Can I have some money too?

I pay taxes also. Lots of taxes. And I don't want my taxes to help someone stay in their $500,000.00 home while I "make do" with my $125,000.00 home.

I'm tired of everyone complaining about their tax dollars being spent on bailing out people who have been foreclosed on. You know what I'm tired of spending my tax dollars on? An unwinnable war. Yes, I believe alot of these people got in over their heads and they are in financial troubles due to lack of sound judgement however, it is a sad state of affairs when American citizens aren't willing to help other Americans. I would much rather have my money spent here than over seas.

Answer this.....if our government wasn't spending our tax dollars on bail outs for ex-homeowners who would they be spending it on? I'm sure they wouldn't spend our tax dollars to bail out banks, the airlines, Amtrak, Iraq and God knows who else. If you didn't notice I was being sarcastic.

It's not the government or FHA that is the problem. It's the banks that's the REAL problem. I am a mortgage broker and the problem is that the banks have added all their own criterias onto the FHA qualification guidelines making it extremely hard for these people in the mortgage crisis to qualify for these FHA loans. For example, FHA does NOT require a minimum FICO score. However, 95% of the banks doing FHA loans require a minimum score of 580. Even for the new FHA Secured loans which is supposed to help people that have fallen behind due to adjustable rates. If a person has been late 30 days or more on their mortgage payments chances are that their credit score is below 580 therefore, disqualifying them for any FHA loan. As I said, the banks are the ones that need the overhaul here, not FHA or Fannie and Freddie. The banks need to quit raising the qualification guidelines and go strictly by FHA's guidelines that are in place. If this happened, it wouldn't cost us the tax payers any more money for these bills that are just being ignored anyhow. The "housing crisis" could be over in a matter of months. It's up to the banks.

Most of you have all addressed the "little guys" who bought homes they could not afford. A few have stated it is NOT the governments responsibility to bail out these folks. You are all kidding yourselves. This is not a bail out for the little guy; it is a bail out for our banking system. i.e. "stimulus act" was not about $600 rebate checks. (see temporary (12/08) increases ($729,750) in Fannie/Freddie limits).

The problem is so BIG that this is one of the only and quickest solutions; it is also the solution the campaign contributors want. The BIGGER problem is that we don't know what will not be enough! Odds are that "foreign investors" won't stick around long enough to find out.

If limits are kept at the new proposed amount of $625,000 this will do very little for the CA option ARM & 2nd markets. (Countrywide/BAC, WAMU, IndyMac, Wachovia, Wells Fargo, etc. will all need additional help outside of Fannie/Freddie)

Most of the executive branchs' (regulators) have failed us while lending execs and Wall Street have robbed us blind. Most of our "reps" virtually encourage their behavior. No or very limited arrests. What is going on with Michal Perry (IndyMac). What about Bear Stearns arrests? How come no arrests in the FBI's 21 corporation investigation?

If nothing else we need rule of law. How can you expect the police force to do their jobs on limited budgets and arrest those who will be forced to steal bread for their families? Especially, when you let others who have destroyed our financial markets get away with trillion-theft larceny.

Once again we are attempting to conceal and delay the real problems. Unfortunately, few of our "representatives" are upholding their oath or rule of law.

$25 Billion...Please!!! We are talking at least 25% of the $5-6 trillion in existing mortgages. Most likely the entire mortgage market under $729,750 will eventually be owned by Fannie and Freddie.

Besides flaming uncontrollable inflation our entire economic system; "free market" capitalism has just been destroyed.

"The day that Capitalism Died"

profchaos

I understand your position, however if you are a owner of a 401k or any other type of investment account not shoring up these companies could cause a substantial loss in your portfolio. If you happen to own a home and the market collapse then that could affect your property value. If the tax base in your community drops the county, state or locality will have no choice but to raise your assessment or millage rate to compensate for the short falls. What we have here my friend is a system that predicated on the pyramid scheme just like the banking system. If we allow the base to collapse then the whole pyramid collapse. if you can't beat them then join them. I brought several shares of (fre) Freddie and (fnm) Fannie while they were down because I knew the system. I have made a substantial return so far especially since the president agrees to the housing bill. i suggest you get paid my friend.

I 100% "disagree" with this Fed bail out of the banks and foreclosures. Will the gov't step in and bail out my business if I do something stupid and get into financial trouble? I think not, nor should they. It's not up to the feds to use our tax money to fix peoples stupidity and greed. Aren't they also wanting to raise the gas tax? Go figure!

hey, i bought a new ferrari that was just recently repossessed because I could not afford the loan that I signed up for. do you think the government will create an exotic car bill that will help me get my car back???

1. a home IS NOT an entitlement
2. the federal govt DOES not belong in the middle of this
3. Let the lenders fold
4. forclose on the irresponsible

Nicole, what are talking about? You went from banks to slaves in just few paragraphs. First of all, you need to stop tinkning in terms of where the gov't could spend money once we're out of Iraq. Try this. How about I keep more of my tax money? My last paycheck, I paid in taxes double the amount of my house note. That doesn't include the amount I pay in taxes for my business and employees. How much is enough? By the way, I'm self employed and have very high deductiblehealth insurance and I don't want the gov't (i.e., you and me) paying more in taxes so I can have coverage. I don't want others paying for my choices, good or bad.

Secondly, this country was founded and built on a lot more than slaves. Most of the people couldn't afford slaves. So, don't even go there. Know what you're talking about and quit with the emotion.

Let us not forget that home owners pay property taxes. In urban and sub-urban environments this a lion-share of the county or cities tax base. Not shoring up these investments will place additional strain on city and county tax liabilities. In essence, states with large urban centers will have to resort to raising the taxes on those individuals who have invested wisely in home ownership.

Putting it simply, the Bush Administration is NOT, in my opinion, responsible for this housing mess. Also, their opposition to the housing bill was well placed, and a good policy decision. I think the change in the position is the result of the Liberal-Left, who's electoral base comes from large urban environments, is clamoring that not bailing out these unwise home-owners would result in an economic depression in the urban centers as foreclosures continue, and business move out of the area in search of a larger customer base.

This is not a problem that we should have experienced, but when you try to save the cities at the expense of the country, this is the kind of bad business decisions that get made. Raising the minimum wage and causing massive layoffs as business try to anticipate an increased cost of doing business results in job loss, and as a result, the loans held by those who lose their jobs become un-payable. As this situation snow balls, the smart home owner, who finds themselves in this position will then take on the roll of selling the home to get out from underneath the loan. When the housing market depreciates, and their home is no longer rated as highly as it was at the origination of the loan, home owners find themselves stuck in a financial prison. Foreclosure is normally the outcome.

Since the Republican Party is counting on some urban support in the coming election, it is not surprising that they find themselves trying to aid the Democratic party base with a problem that was the result of the bad economic policy of the Democratic Party base. This bill doesn't just bail out the failed home owners, it bails out the counties tax loss that would normally be experienced by the foreclosure.

I don't agree with the bill. Personally I think the foreclosures should continue so that the counties have to sell the defunct property at a lower rate in order to get the property tax liability back in line with current home values. However, it would seem that there is an effort at the county level to continue to raise the property tax liability on the homeowner regardless of the housing market situation.

Putting it in simpler terms. If the housing market is depressed, and house values are not that high any more, why the heck are the counties taxing the home-ower at a higher level every year?

The Republicans are wrong to go along with the Democrats on this one, but in the end, this is still the United States of America. The economy is all of our responsibility. It is looking like the Republicans are going to have to bail the democrats out of another mess.

Let us not forget that home owners pay property taxes. In urban and sub-urban environments this a lion-share of the county or cities tax base. Not shoring up these investments will place additional strain on city and county tax liabilities. In essence, states with large urban centers will have to resort to raising the taxes on those individuals who have invested wisely in home ownership.

Putting it simply, the Bush Administration is NOT, in my opinion, responsible for this housing mess. Also, their opposition to the housing bill was well placed, and a good policy decision. I think the change in the position is the result of the Liberal-Left, who's electoral base comes from large urban environments, is clamoring that not bailing out these unwise home-owners would result in an economic depression in the urban centers as foreclosures continue, and business move out of the area in search of a larger customer base.

This is not a problem that we should have experienced, but when you try to save the cities at the expense of the country, this is the kind of bad business decisions that get made. Raising the minimum wage and causing massive layoffs as business try to anticipate an increased cost of doing business results in job loss, and as a result, the loans held by those who lose their jobs become un-payable. As this situation snow balls, the smart home owner, who finds themselves in this position will then take on the roll of selling the home to get out from underneath the loan. When the housing market depreciates, and their home is no longer rated as highly as it was at the origination of the loan, home owners find themselves stuck in a financial prison. Foreclosure is normally the outcome.

Since the Republican Party is counting on some urban support in the coming election, it is not surprising that they find themselves trying to aid the Democratic party base with a problem that was the result of the bad economic policy of the Democratic Party base. This bill doesn't just bail out the failed home owners, it bails out the counties tax loss that would normally be experienced by the foreclosure.

I don't agree with the bill. Personally I think the foreclosures should continue so that the counties have to sell the defunct property at a lower rate in order to get the property tax liability back in line with current home values. However, it would seem that there is an effort at the county level to continue to raise the property tax liability on the homeowner regardless of the housing market situation.

Putting it in simpler terms. If the housing market is depressed, and house values are not that high any more, why the heck are the counties taxing the home-ower at a higher level every year?

The Republicans are wrong to go along with the Democrats on this one, but in the end, this is still the United States of America. The economy is all of our responsibility. It is looking like the Republicans are going to have to bail the democrats out of another mess.

This is exactly why we need the fairtax enacted....everyone pays a tax...it just doesnt fall on a few out of many to pay for everything....at what point is enough enough?...Its not the government doing everything for everybody....its the taxpayers....and I cringe everytime another new program is created...my paycheck just gets smaller and smaller....it makes you want to just give up and jump on the welfare train to nowhere with everyone else.

Again, lets call a spade a spade the reason is not "high cost loans" it is because people made bad decisions. I love the PC nature of the article attempting to soft peddle the problem as "high cost loans".

People who are going to be bailed out with "our" money should have their and address published so to alert other lenders that these people are victims and as such should be contacted on every whim in further attempts to separate them from their money, oh I mean my money!

When did it become the government's job to take care of our personal business and take responsibility for everyone's poor choices?

I would like for them to leave me alone & stop taxing me to bail out wicked, greedy folks, and self-entitled individuals whose choices I don't want to encourage nor support. This way, I will be able to use more of my own resources to use in my own "village" in a free manner, as I see fit.

This coming November, I'd love nothing more than to see a political revolution at the polls that results in all Republicans & Democrats get voted out, for no other reason than to let them know that "We the People" still long to be free...

Yes, TonyB. I noticed that too. There was another article that referred to the "cause" of this housing crisis being that housing prices went up faster than income! No kidding! God forbid they admit that the real problem is that the greed of bankers & investors (both Wall Street & Individuals) lead them to behave in a very, very bad manner...

I read recently that last month (June '08) one in 501 homes received foreclosure notices. That amounts to about 1/2 of 1% of all homes. And the article went on to say that only half of those who were sent notices will actually go to foreclosure.

Am I missing something? Does this crisis in foreclosures only involve 0.25% of the homes in this country? Leaving 99.75% of homes that are NOT in foreclosure?

Please help me understand.

jen orozco,

You are partially correct. It was a combination of all those factors and not not just one entity that made this country what it is. However, there's big difference in discussing legitimate ideas backed in facts and those ideas in which someone chooses bits and pieces of facts to conclude what they want to hear.

I am extremely frustrated with the amount of taxes I pay and I can't for the life of me understand why so many others don't get what damage high taxes are doing to our country. Part of why the country became so great was because people have the freedom and independence from gov't, including taxation. I just won't sit quietly and let someone like nicole0779 fabricate her own version of history to persuade others. I'm quite sure fitzgerald was not considering ideas to be the same as outright lies. At least that's my take on it.

-Everyone is entitled to their own opinion, but not their own facts. - Daniel Patrick Moynihan

Indymac, Countrywide , Freddie Mac Fanny Mae, legislative and executive branch etc… all the same, run by the cronies of the mafia I mean elite. It all seems to smack of something out of the sopranos with all of the fraud and manipulating of the uneducated. The FBI/government leaders and Fed's knew about the corruption going on out there and still is. I guess if the players didn't f#uck up the script and let the sheep find out, all would had gone well and their would not be all these investigations going on to distract us of who the real villains are. We each have our own ideal of who created the problems, some say the government because of lack of or over regulating. Some say the stupid people who got loans that they couldn't afford because they moved to fast to get a piece of that American dream. Some say the greedy bankers and lenders who gave the money out just to increase profits for their share holders and pay interest to deposit owners of their institutions. I could go on and on in placing blame, but the blame still falls back on we the people because this is our system. Its designed for the knows to always take advantage of the don't knows, it's impossible for everyone to be on top. That's why those at the bottom and middle believe that with education and hard work someday we will make it to the top and we don't want the game to change before we get there. That old saying the more you know and who you know the better off you will be. If you can't beat them join them : ).

Socialism? Well, you know what else is socialism? The public school system. So, I guess you believe that your tax dollars shouldn't be going to pay for free education, right? So, are America's children feeding off the "teet" of a socialist parent? I am not being mean or sarcastic I am merely asking a question that often perplexes me. Some people talk about how we shouldn't have national healthcare because it's socialism as they put their kid on the bus to go a free public school.

a permanent affordable housing fund financed by the two mortgage companies

Want affordable housing? Simple. Just don't bail out the current over-inflated prices and let prices fall.

Who can fault Americans for wanting homes with a minimum of 4,000 square-feet. Let's have a little compassion here. Compassionate conservatives must prevail.

Thinking big in America is a national obsession, and we shouldn't have to declare bankruptcy for having big dreams. Many of us deserve to be bailed out.

I think families making $40,000 and buying a $600,000 dollar home should be bailed out.

However, Americans should be denied the right for universal health coverage. Of course if a person is in failing health and he/she can't pay his high health insurance premiums, the government should clearly not intervene. Clearly! I think that's understood by most of us here. That would be socialism--a concept so alien to us Americans. I shudder to even type that word. Ohhhhh! The government housing bailout is thankfully not socialism by any stretch of the imagination.

When you scratch a little below the surface, there's a number of issues at play. I'll mention a few:

1. The government has the right to know what you do sexually in your bedroom. If you DON'T own a house, or your house is foreclosed, how is the government going to know what you're doing sexually in bed. Snooping in an apartment building is problematic compared to a single-family house. This big housing bailout will solve this important issue and conservative, fundamentalists can sleep easier at night knowing sex is strictly for procreation and a rare event.

2. If gays, lesbians, and minorities move into the house next door, it's much easier for people with hate in their hearts to let them know they're not very happy. For example, painting a brick wall with certain words is a common practice. Tell me, how are hateful people going to paint ugly words inside an apartment building wall. They can't. For too many Americans, discrimination and hate is a way of life, so the housing bailout will continue fan the flames of hate and discrimination. Some politicians play into this hate and it works like a charm. You see, this housing bailout was a no-brainer.

3. So many of us don't want to talk to our neighbors, and it's so easy not to talk to your neighbors when you live in a house. Heavens, even waving to a neighbor would take too much time. Homes are a must, so we don't have to talk and wave to our neighbors. When you live in apartment building, you've got to talk a little to your neighbors. Often times its, "Turn the damn stereo down."

Thanks Congress for a job well-done. I'm depending on you.

Yesterday, I just bought a $125,000 Mercedes. If I can't pay the monthly payments down the road, I know Congress will be there for me.

Apparently, no one else caught this...

Are you aware that there is a provision of the law that will require the banks to report to the federal government each and every credit and debit card transaction?

Why does our government need this data?

Apparently, no one else caught this...

Are you aware that there is a provision of the law that will require the banks to report to the federal government each and every credit and debit card transaction?

Why does our government need this data?