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What's your opinion?

http://www.foxnews.com/story/0,2933,497707,00.html

 
AprilDJC

Asked by AprilDJC at 5:02 PM on Feb. 20, 2009 in Politics & Current Events

Level 20 (8,524 Credits)
This question is closed.
Answers (16)
  • As a homeowner who lives on a street with five homes that are currently in foreclosure, I'm asking the same question.

    Our home value has dropped over $30,000 now...even though we've put $5000 in improvements into it in the last year alone. Now we're at a huge crossroads. Do we continue to invest in our home, re-doing the kitchen and finishing off the basement as planned? This year's "to-do" list was to re-do the main and master bathrooms. Do we still want to put another $2000 into that, or are we just pissing our money away?

    Makes a person feel totally defeated. I get that people fall on hard times; but there's plenty of idiots out there that spent themselves into the hole. Now we're paying for their mistakes and will be for years as we wait for our home to gain some of its' value back.

    Pretty frustrating.
    Anonymous

    Answer by Anonymous at 6:00 PM on Feb. 20, 2009

  • yep... that's a URL alright...

    post the actual story and not just a link and I might give an opinion on the story itself. I do not click random links posted because I don't know what the heck it's going to, you could have posted porn for all I know.
    Anonymous

    Answer by Anonymous at 5:03 PM on Feb. 20, 2009

  • paranoid anon 403?
    Anonymous

    Answer by Anonymous at 5:09 PM on Feb. 20, 2009

  • Hadn't thought about it, but yeah, we should be rewarded for buying within our means. We personally live in and are buying a smaller house, which we chose, because it was something we could afford. We saved up our 20% and were able to put it down. It isn't fair that some (not all) people are getting help for being greedy and dumb, and buying something they couldn't afford.
    Anonymous

    Answer by Anonymous at 5:12 PM on Feb. 20, 2009

  • LOL its from foxnews.com you can see that on the link. will post the whole story though...


    Michelle Fry is a suburban Atlanta homeowner who has seen the value of her modest one-family home drop by more than half in the past year. She now sees a national mortgage bailout plan that appears to reward people who bought more house than they could afford and can't pay their bills. And she has a simple question for President Obama:
    AprilDJC

    Answer by AprilDJC at 5:17 PM on Feb. 20, 2009

  • "Why am I paying for them?"

    "We are very frustrated and scared," said Fry, 32, a newly expectant mother who works as a creative director for a public relations firm. Her husband Sam, 38, is a truck driver for a local printing company. Their combined household income is less than $100,000.

    "My husband and I always discuss, 'Why do we try to better ourselves, when it seems if you do nothing, you get all the help in the world?'” she said.
    AprilDJC

    Answer by AprilDJC at 5:17 PM on Feb. 20, 2009

  • That kind of frustration is being expressed at dinner tables throughout the country. Middle class homeowners who worked hard, played by the rules and paid their mortgage bills and taxes on time are wondering out loud whether the government is interested in helping them, too.

    Their frustration is justified, said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California. But the economic risk of letting millions of homeowners default on their mortgages leaves the government with little choice.

    "A year ago I would have been appalled at this plan," Green said. "Now I think we have to do something like this. The moral hazard argument is valid, but is trumped by the macroeconomic situation."
    AprilDJC

    Answer by AprilDJC at 5:17 PM on Feb. 20, 2009

  • Obama's plan, which he announced on Wednesday, would provide $75 billion in incentives to mortgage lenders to refinance homes in danger of foreclosure. Another $200 million would be spent to shore up Freddie Mac and Fannie Mae, the two large government-controlled entities that back residential mortgages.

    The plan would help 8 to 9 million mortgage holders -- a fraction of the approximately 50 million mortgages outstanding, according to Patrick Newport, a housing analyst at IHS Global Insight.

    "The 40 million who aren't going to benefit from this will feel some resentment, because they are current on their mortgages and made good decisions," he said.
    AprilDJC

    Answer by AprilDJC at 5:18 PM on Feb. 20, 2009

  • The president took pains to defend his plan against critics who say it bails out irresponsible buyers who spent more than they could afford.

    "The plan I’m announcing focuses on rescuing families who have played by the rules and acted responsibly," Obama said. "It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans. And it will not reward folks who bought homes they knew from the beginning they would never be able to afford."

    But those assurances are little consolation to Danny and Sara Jovic, who own a condo in Delray Beach, Fla.

    They bought their home for $275,000 in April 2006, putting 20 percent down and getting a fixed-rate, 6.25 percent mortgage to cover the rest.
    AprilDJC

    Answer by AprilDJC at 5:18 PM on Feb. 20, 2009

  • Now their condo is worth only about $175,000, putting the two-income couple among the millions of homeowners whose mortgages are now "underwater" -- meaning they owe the bank more than they can sell their house for.

    Their condo association has already whacked them with a one-time fee of $500 to make up for other homeowners who were foreclosed. And their monthly fees have gone up permanently by $100. That's a tough nut to swallow for Jovic, 30, and Sara, 28, whose combined income is between $80,000 and $90,000. They are thinking of starting a family, but they are unsure given the volatile economic times.

    "I think the government should help people like me, or the bank should be willing to adjust the loan fairly -- at least make it based on market value now," Jovic said.

    AprilDJC

    Answer by AprilDJC at 5:18 PM on Feb. 20, 2009

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