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Politics : Liberalism: Do You Agree We've Had Enough of It?
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To: lorne who wrote (111902)9/3/2011 9:54:24 PM
From: MJ1 Recommendation   of 224750
 
Seems like Obama first set up the Federal System to rescue the mortgage crisis with parameters that few Americans could meet.

Under the MHA program that he held out as the big rescue was that a mortgage could not be more than $729,000---or some figure close to that--- to qualify for the modifications by the banks. That meant that the banks could not offer modifications to people with mortgages even $1,000.00 above the guideline.

Automatically a lot of home owners were disqualified and spent their life savings in an attempt to keep their homes and to stay afloat with the onerous terms of the loans instituted when they bought. The internet is full of comments by people who lost their homes as a result of being excluded by Obama's assinine MHA program.

As those properties failed to qualify------they have become owned by the bank or by the government. In both cases they are either foreclosed on or short sold--------not unlike selling short in the stock market.

Few potential buyers can buy foreclosed properties as they are sold at auction-------and the buyer must have the cash in hand for a foreclosed property plus other guidelines.

However, potential buyers can buy short sold properties-----------so enter the next stage of the MHA program---------HAFA -------since homeowners can't qualify under the MHA program they then get shifted
to HAFA , a government program with guidelines that allows the bank to short sale the property in conjunction with the owner and formal government requirements .

These short sold properties go for a fraction of their real worth and to buyers who are paying as little as 5% down on the new mortgage. And, to buyers who may not be citizens.

I firmly believe that the MHA program is part of what has caused the housing crisis to worsen. It has clogged up the natural free buying of selling of houses and caused houses to become owned by Fannie or Freddie.

This is one tangled web---------Obama did just as you indicated giving to the banks with one hand and now wants to sue them because of the very programs that he and his administration created that had guidelines that few Americans could qualify for under the government run program.

mj
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