The Handouts Continue- Mortgage Bailout in Ohio
You responsible renters are suckers:
Ohio will get the largest chunk among five states splitting $600 million in foreclosure prevention money, the Obama administration announced Wednesday, Aug. 4.
The $172 million in federal rescue funds for Ohio will, during three years, assist 18,500 home- owners who are unable to make mortgage payments because of unemployment, according to the Ohio Housing Finance Agency.
In February, the administration announced a $1.5 billion foreclosure assistance plan for Nevada, Florida, Michigan, Arizona and California, where owners have seen their property values plummet 20 percent or more.
Sens. Sherrod Brown, D-Ohio, and George Voinovich, R-Ohio, both urged the Obama administration to expand the program to include states like Ohio, which didn’t meet the earlier criteria.
Since Obama first unveiled plans to “assist” with mortgages, more than 1.5 million homeowners were invited to tr it, while 40% have already been kicked out of the program. And these sorts of sloppy handouts and contract “remodification” means that a foreclosure, which used to take on average of 319 days to fully process, now takes 461, which forces banks to carry assets and have banks report assets without noting loss, while making banks even more nervous about offering new home loans.
Beyond the obvious point that people who own homes are more likely to remain in a community and vote, why should we have sympathy for those who applied for loans they couldn’t afford, took gambles on ARMs, and assumed their home values would skyrocket?
Too many home owners are underwater, so instead of paying a few thousand per month in a home that has no equity, people are better off by finding ways to walk away from their homes, improve their cash flow and thus improve their lifes.
The mortgage market was overvalued due to government involvement in the credit market, but all of those excess homes that were built are not going away anytime soon.