Bush Signs the Mortgage Relief Bill

AFM reader, Beth, emailed me a copy of this article she found on Yahoo this morning. You can read the article here. This quote from the article is astounding (emphasis mine):

“We look forward to put in place new authorities to improve confidence and stability in markets,” White House spokesman Tony Fratto said. He said the Federal Housing Administration would begin to put in place new policies “intended to keep more deserving American families in their homes.

“…deserving American families?”

According to Merriam-Webster, the definition of “deserve” is:

transitive verb
: to be worthy of : merit [deserves another chance]
intransitive verb
: to be worthy, fit, or suitable for some reward or requital

This kind of talk drives me nuts! This is all politics.

Here’s some of the provisions of the bill:

The measure includes $300 billion in new loan authority for the government to back cheaper mortgages for troubled homeowners; $3.9 billion for communities to fix up foreclosed properties causing blight in neighborhoods; and $15 billion in tax cuts, including an expanded low-income housing tax credit and a credit of up to $7,500, to be repaid, for some first-time home buyers.

I’m curious as to how the $3.9 billion for communities to fix up foreclosed properties will be allocated. Someone’s gonna get rich off that deal. I’m also not quite sure what the $7,500 credit (to be repaid) means. Other articles I have read make no mention of the credit having to be repaid.

There’s also no mention of help for struggling homeowners like me who want to add on a master suite and put in a swimming pool. Darn it!

14 thoughts on “Bush Signs the Mortgage Relief Bill”

  1. Deserving Amerikans are those who THINK AHEAD.
    JLP you are whiner, think retard, ain’t deserving it!

  2. Wilson,

    I don’t understand why you spend so much time on this blog if all you’re going to do is criticize everything I write.

  3. But the credit comes with some noteworthy limitations.

    No. 1: You’ve got to pay the credit back to the IRS over an extended period – up to 15 years following the tax year of the home purchase. And if you sell the house or convert it to another use other than principal residence, such as a second home or investment property, you’ve got to repay the credit.

    Fix My Personal Finance

  4. Maybe I should stop paying my mortgage for a few months. Then, I would be in danger of foreclosure, and maybe qualify for some free money.

  5. Ahh, once again the responsible people who actually pay their mortgages on time get no reward and will probably be paying for this bill in the long run somehow.

  6. In Kiplinger’s this month an article in part about the housing crisis and how it will affect us and financial stocks in general. To paraphrase, Foreclosures will peak in 2009 or 2010 probably driving down home prices and consumer spending;ie the economy. not a pretty picture. Written by Whitney Tilson and John Heins.

  7. Most of you don’t know what you are talking about. Unfortunately, I am in an upside down loan; I am looking at my mortgage jumping up 1000 in 10 months. I have not added on luxury suites and have used my home to finance my children’s education, the value of my home has plummeted and I’m screwed. My husband and I have good jobs, we bust our butts, but we are middle class. I don’t get nor ask for help for anything. I don’t deserve to lose my house, because this rise in my mortgage will kill us. I am in an ARM but am completely stuck now. What is this bill going to do for someone like me?

  8. @cp “I am in an ARM but am completely stuck now.”
    You just don’t get it do you? You gambled on an ARM and you lost.

    That’s the chance you took and now you need to accept the consequences. Why should you get the benefit of the lower rate and then when rates go up get some kind of relief from that?

    My family, and others, chose to take the higher fixed rate mortgage and buy a more modest house and live within our means. Why should we subsidize your losing gamble?

    I’m sorry that things didn’t go your way but that’s the breaks. Next time you’ll make a more prudent and conservative choice (I hope).

  9. @cp – I wanted to make the same comment as Nathan, but he beat me to it. It was your choice to go with ARM. Similarly, a lot of people in 2000s chose to invest money in start-ups or chose to buy on margin thinking they’ll quickly make money to retire or, yes, pay for their kids education. They lost, and there was no bailout. Not only that, some unfortunate people who worked for start-ups and got part of their salaries in incentive stock options gambled by not selling stock immediately after exercising options, got hit by AMT on money they no longer had as the stocks turned into worthless paper. There was no bailout for them, not even a break on their six digit debts to IRS for gains they never got. I read about a family who had to use their children college money to pay off the IRS. How are you any more deserving of a break than they? Some times gamble pays off. At other time it doesn’t.

    I am ambivalent about the bailout, but simply because I think that we are going to pay either way. Foreclosures hurt everyone as do bank failures.

  10. @cp – I agree with Nathan and Kitty. You are apart of the reason we have a housing crisis. You bought a home that you cannot afford and now have to pay the consequences. I purchased a home I could afford and got a fixed 30 yr. I purchased in July 2005 and still got a good deal.

    I have no tears for you or anyone like you. Things needs to come crashing down so this country feels some pain. Overindulgence is going to be our downfall.

  11. All of you who gloat over being able to pay your mortgage.Listen to this,My salary was reduced because of the lousy economy over 20k per year.The property taxes where I live go up 3 to 600 per year.Add on the astronomical price of fuel,utilities and insurance,and a disabling back surgury and you have a recipie for disaster.
    So while you all beat up these people for hoping to have a decent life like everyone else,remember this,I never thought for a minute it could have happened to me,so dont you all think for a minute it won't to you.You are all so short sighted and I know one thing and listen to this!This economy has a long way down to go and your gonna get taken with it,the only difference between any of us is when,and how long you can hold out.I hope all of you remember this message.I empathize with anyone taking a fall.And thise of you who feel good looking down your noses at them,your day is coming trust me.

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