Government To Bail Out Sub-Prime Loans §

[poetpaladin]

 
One part I don't agree with Obama on is some of the pending housing legislation in Congress.

Some BackgroundThe Federal Housing Administration (FHA) lost $4.6 billion dollars last year. That's because the federal government guarantees home loans for low-income families, and low-income families are more likely to be delinquent on their loans

Comments

[miss_geek]

if that legislation doesn't go through my mother and i may very well lose the house that my grandparents had built 50-some years ago. i'm not going to get into the details of it here, or anywhere else for that matter, but if the legislation you're talking about doesn't pass, my family is fucked.

one more reason for me to vote obama.

[poetpaladin]

Oh, I'm still voting for Obama for President - just for different reasons.

I am sorry that you guys may lose the house if the legislation doesn't go through. I do hope for your sake that it passes.

However, for my sake, my hope is that our government doesn't pass irresponsible spending bills - our national debt is already 9 trillion dollars because of Reagan and Bush II. Also, if this bill passes, Melanie and I will not be able to buy a home for our family, because with the federal government stepping in to sustain this bubble, home prices will not return to their historical mean when it used to be a more reasonable multiple above rent prices.

[ktangel13]

I don't think that prices are going to go up just because the government is stepping in more... There's a lot more to buying a house then getting a loan. A lot of people are just too scared with the overall economy to buy a house. Not to mention, you've still got to deal with the mortgage payment whether or not you can qualify.

If I were you, I'd be going to a mortgage broker now to see what kind of shape you're in to get qualified on a home. That way, you can better prepare yourselves when you take the plunge. :)

[poetpaladin]

But should the government really be stepping in to help ailing home-owners when FHA loans already have a default rate of over 12 percent? That's a lot of bailing out and it's costly to taxpayers.

*grin*

Right now all our spare cash is going towards our wedding.

We plan on being debt free (except for car payments) on our wedding day.