Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (85780)	6/21/2010 1:39:44 PM
From: FJB	1 Recommendation Read Replies (1) \| Respond to of 224748

More borrowers exit Obama mortgage help plan Borrowers face foreclosure after Obama loan assistance plan fails to provide help Alan Zibel, AP Real Estate Writer, On Monday June 21, 2010, 12:03 pm EDT WASHINGTON (AP) -- A growing number of homeowners who sought help from the Obama administration's main mortgage aid program are in danger of losing their homes. About 436,000 borrowers have dropped out of the $75 billion plan as of last month, the Treasury Department said Monday. That's about 35 percent of the 1.24 million who enrolled since March 2009 and exceeds the number of homeowners who are getting help through the program. And nearly 155,000 of those who fell out of the program did so in the past month. The result could be a new wave of foreclosures that could weaken the housing market and hold back the broader economic recovery. Most of those homeowners were rejected during a trial period lasting at least three months. More than 6,300 dropped out after having their loans modified. Another 340,000 homeowners, or 27 percent of those who started the program, have received permanent loan modifications and are making payments on time. Experts say more borrowers are likely to drop out in the coming months. Some homeowners who owe more on their loans than their properties are worth are likely to conclude that paying an oversized mortgage simply isn't worth the cost. Even after their loans are modified, many borrowers are simply stuck with too much debt -- from car loans to home equity loans to credit cards. "The majority of these modifications aren't going to be successful," said Wayne Yamano, vice president of John Burns Real Estate Consulting, a research firm in Irvine, Calif. "Even after the permanent modification, you're still looking at a very high debt burden." Obama administration officials contend that borrowers are still getting help -- even if they fail to qualify for the program. The administration published statistics showing that nearly half of borrowers who fell out of the program received an alternative loan modification from their lender. About 7 percent fell into foreclosure. Another option is a short sale -- one in which banks agree to let borrowers sell their homes for less than they owe on their mortgage. A short sale results in a less severe hit to a borrower's credit score, and is better for communities because homes are less likely to be vandalized or fall into disrepair. To encourage more of those sales, the Obama administration is giving $3,000 for moving expenses to homeowners who complete such a sale or agree to turn over the deed of the property to the lender. The program is designed to lower borrowers' monthly payments by reducing their mortgage rates to as low as 2 percent for five years and extending loan terms to as long as 40 years. Mortgage companies get up to $75 billion in taxpayer incentives to reduce borrowers' monthly payments.

To: lorne who wrote (85780)	7/1/2010 11:27:59 PM
From: Hope Praytochange	Respond to of 224748

The government said initial claims for unemployment benefits rose by 13,000 last week to 472,000. Economists had forecast a drop in claims. The report comes a day after payroll company ADP said private employers didn't increase hiring as much as expected last month. Other economic news added to investors' concerns. The National Association of Realtors said the number of buyers who signed contracts to purchase homes fell to a new low in May following a rush of purchases to meet an April 30 tax credit deadline. Meanwhile, the Institute for Supply Management said its manufacturing index fell in June but that industrial activity still appears to be steady. The stock market has been sliding on concerns about the economy since hitting its 2010 high in late April. The benchmark Standard & Poor's 500 index dropped nine of the past 10 days. Investors are worried that they were too quick to bet on a rebound after major indexes plunged to 12-year lows in March 2009. The Dow fell 41.49 to 9,732.53. It was the lowest close since October 2009. It was down as much as 152 points in late morning trading. The Dow hasn't dropped six straight days since mid-January 2009. The S&P 500 index fell 3.34 to 1,027.37. The Nasdaq composite index fell 7.88 to 2,101.36. The Dow dropped 10 percent for the April-June quarter, while the S&P 500 index fell 11.9 percent.