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US gives $3B in housing aid, Florida's jobless homeowners in foreclosure to get $239M

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US gives $3B in housing aid, Florida's jobless homeowners in foreclosure to get $239M

Post  sc4ram on Thu Aug 12, 2010 11:26 am

interesting footnote here, if you read the article it says they funded this by using the TARP money (i presume its the money that has been paid back but not put back into the Treasury) . Too bad they couldnt be that creative with a Tier V.

US gives $3B in housing aid

Florida's jobless homeowners in foreclosure
to get $239M

ASSOCIATED PRESS • August 12, 2010

The Obama administration is providing $3 billion to
jobless homeowners facing foreclosure in the
toughest job markets.

The Treasury Department said Wednesday it will
send $2 billion to 17 states that have unemployment
rates higher than the national average for a year.
They will use the money for programs to aid
unemployed homeowners. Some of those states have
already designed such programs.

Another $1 billion will go to a new program being
run by the Department of Housing and Urban
Development. It will provide homeowners with
emergency zero-interest rate loans of up to $50,000
for up to two years.

The administration was required to launch the HUD
emergency loan program by the financial regulatory
bill signed by President Barack Obama last month.

The Treasury is using money from the $700 billion
Wall Street bailout to pay its share of the program.
Officials said they won't know until next month how
many people are likely to be helped.

California will get the largest share of money for the
Treasury program, at $476 million. Florida is in line
for nearly $239 million. Illinois will receive $166
million and Ohio will receive $149 million.

The Obama administration has rolled out numerous
attempts to tackle the foreclosure crisis but has
made only a small dent in the problem. More than
40 percent, or about 530,000 homeowners, have
fallen out of the administration's main effort to
assist those facing foreclosure.

That program, known as Making Home Affordable,
provides lenders with incentives to reduce mortgage
payments. So far, it has provided permanent help to
about 390,000 homeowners, or 30 percent of the
1.3 million who have enrolled since March 2009.

Also receiving money are Michigan, $129 million;
Georgia, $127 million; North Carolina, $121
million; New Jersey, $112 million; Indiana, $83
million and Tennessee, $81 million.

Alabama is due to receive $61 million, South
Carolina, $59 million; Kentucky, $56 million; O
regon, $49 million; Mississippi, $38 million;
Nevada, $34 million; Rhode Island, $14 million; and
Washington, D.C., $8 million.

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sc4ram

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Re: US gives $3B in housing aid, Florida's jobless homeowners in foreclosure to get $239M

Post  nancym on Sat Aug 14, 2010 2:40 pm

sc4ram wrote:interesting footnote here, if you read the article it says they funded this by using the TARP money (i presume its the money that has been paid back but not put back into the Treasury) . Too bad they couldnt be that creative with a Tier V.
...


Yup!

It really all boils down to who has vested interest in what spending is done and where, coupled with build-in prejudices against those who don't have any power (like the unemployed). People with vested interest directly in the housing market (realtors, etc.) have a more powerful voice than the unemployed who have virtually no power other than our voices. Not that helping homeowners is a bad thing, but lawmakers don't seem to be capable of connecting the dots as broadly as is needed in this overall crisis.

Personally, I have no judgment about this program, but I do wonder how many it will actually help stay in a home. For many with hardly enough money for food, even paying a zero-interest loan may be impossible. I suspect many will still become "squatters" in their homes, waiting for the court backlog of foreclosure procedures to catch up with them, sometimes taking years.
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Re: US gives $3B in housing aid, Florida's jobless homeowners in foreclosure to get $239M

Post  sc4ram on Mon Aug 16, 2010 11:37 pm



I would offer a different theory here. Im not aware of a fleet people in yellow blazers lobbying the Congress for this. What I smell here is that election time is bearing down on the "ruling class" and they need to do something to prop up the housing market (there may not be a double dip recession but there argueably is one in the housing market) .

I see this program as a poor band-aid. As with the savings & loan crisis of the late 80's, they need to clear these properties off the books of the banks. If somebody cant afford the house they are in they (and the lender) need to either re-negoiate the mortgage or agree on default (and go rent a apartment or move in with their mother-in-law) . This process of delaying the inevetable is simply keeping the housing market in a depressed state. (which doesnt help any of us). A painful process at best, but the sooner these bad mortgages clear, the sooner we'll be on to recovery in the housing market.
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Re: US gives $3B in housing aid, Florida's jobless homeowners in foreclosure to get $239M

Post  nancym on Tue Aug 17, 2010 9:26 pm

We may not completely agree on just who the "ruling class" is, but there really are plenty of lobbyists for the real estate industry and developers who lobby Congress, although not wearing yellow blazers, I'm sure.

But I agree all this is a bandaid. I tend to not proffer an opinion too often on the housing market, not being a home-owner myself. But it does seem to be common sense that there really isn't enough money in the whole country to float housing prices up to where they were and "make it all better again." Housing was insanely over-priced to begin with. It's really a tough call, feeling sorry for those who legitimately bought with decent down-payments and are now unable to pay because they have no job, but then I really don't care to use tax money to prop up someone's bubble equity that they were using as a credit card either. The whole thing is tragic and a mass of blunders all around. I decided not to buy when I had the chance, thankful for my scrooge-like decision, or maybe just lucky hesitation, a few years ago.

The only people I see making out well in my neighborhood with all this is the renovators; everyone else is too unemployed or underemployed to take advantage of the cheap housing prices (especially the condos, and most of those are luxury condos anyway.)

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