Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Rescues for Homeowners in Debt Weighed

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
Amerigo Vespucci Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 01:40 AM
Original message
Rescues for Homeowners in Debt Weighed
Source: The New York Times

WASHINGTON Prodded in part by some of the nations biggest banks, the Bush administration and Congress are considering costly new proposals for the government to rescue hundreds of thousands of homeowners whose mortgages are higher than the value of their houses.

Not since the Depression has a larger share of Americans owed more on their homes than they are worth. With the collapse of the housing boom, nearly 8.8 million homeowners, or 10.3 percent of the total, are underwater. That is more than double the percentage just a year ago, according to a new estimate of the damage by Moodys Economy.com.

Administration officials say they still oppose any taxpayer bailout for either people who borrowed more than they could afford or banks that made foolish loans during the height of the speculative bubble in housing.

But with the current efforts to arrest the housing collapse so far bearing little fruit, Washington is being forced to explore new ideas, among them the idea of a federal mortgage guarantee for troubled borrowers.

Read more: http://www.nytimes.com/2008/02/22/business/22homes.html





Stuart Breakstone, a lawyer in Memphis, and his wife, Lori, owe about $670,000 on their home.
Printer Friendly | Permalink |  | Top
Skittles Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 01:47 AM
Response to Original message
1. ?
Edited on Fri Feb-22-08 01:48 AM by Skittles
I didn't buy a house because of the prices, now I am expected to bail out a lawyer who owes more than half a million dollars on his home?
Printer Friendly | Permalink |  | Top
 
Amerigo Vespucci Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 01:53 AM
Response to Reply #1
2. I hear ya...
...the reason why I added the photo and caption from the story into the "contents" section is that while it may be unfortunate and inconvenient, and while this man and his wife may be honest and hard-working, they owe more on that house than most people will ever afford to spend on one, and maybe looking to the taxpayers isn't the best way to solve his problem.

Because if the government decides to help him with his 600+K debt, they have to help everybody in order to be fair, and they can't.

Maybe this man's agenda could include selling the mansion and investing whatever he gets from it into humbler surroundings.
Printer Friendly | Permalink |  | Top
 
NashVegas Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 07:42 AM
Response to Reply #2
8. Even Worse - Bankers Want the Feds to Help Keep Homes at Their Over-Inflated Values!
In the late 1980s and early 1990's Connolly worked for the European Commission analyzing the European monetary system in the run up to the introduction of the euro currency.

"Avoiding a depression is, unfortunately, going to have to involve either a large, quasi-permanent increase in the budget deficit -- preferably tax cuts -- or restoring overvaluation of equity prices," Connolly said on Monday.


http://www.reuters.com/article/newsOne/idUSGOR276602200...
Printer Friendly | Permalink |  | Top
 
Hobarticus Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 01:53 AM
Response to Reply #1
3. Yesh! It's the 'Murikan Way!
Why d'ya hate 'Murika?

:crazy:
Printer Friendly | Permalink |  | Top
 
WCGreen Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 02:04 AM
Response to Original message
4. That guy looks older than me and I am only carring on tenth of his mortgage...
Who would loan that much money to someone in my age brackett...
Printer Friendly | Permalink |  | Top
 
bluestateguy Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 02:42 AM
Response to Original message
5. I was smart enough not to enter into a mortgage I could not afford
I am also smart enough to read the full text of any contract I sign.

That's all I have to say.
Printer Friendly | Permalink |  | Top
 
Victoras Donating Member (20 posts) Send PM | Profile | Ignore Fri Feb-22-08 06:08 AM
Response to Original message
6. Breakstone, Esquire

If that family is indeed seeking relief,
they both need to exhaust their 401K, ROTH Accounts, and any deferred compensation
they may have in the law firm...IOW they need to be dirt poor
Printer Friendly | Permalink |  | Top
 
tanyev Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-22-08 07:34 AM
Response to Original message
7. "Not since the Depression...."
I fear we're going to be seeing that phrase more and more frequently.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Mon Oct 20th 2014, 07:19 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC