Wednesday, August 11, 2010

Obama: If You are a Deadbeat But Likely to Vote for Me, I Will Pay Your Mortgage with Money from Other Taxpayers

The Obama Administration today announced two programs providing additional support to help homeowners who haven't paid their mortgage. In  one program funds will be provided for those who are delinquent by at least three months. So if you are delinquent by two months, forget about dropping a check in the mail. Sit back and wait, it's possible you may have one the Obama lottery.

Under the first program announced today, states eligible to receive support have all experienced an unemployment rate at or above the national average over the past 12 months. Each state will use the funds for targeted unemployment programs that provide temporary assistance to eligible homeowners to help them pay their mortgage while they seek re-employment, additional employment or undertake job training.

States that have already benefited from previously announced assistance under the Hardest Hit Fund may use these additional resources to support the unemployment programs previously approved by Treasury or they may opt to implement a new unemployment program. States that do not currently have Hardest Hit Fund unemployment programs must submit proposals to Treasury by September 1, 2010 that, within established guidelines, meet the distinct needs of their state.

The states eligible to receive funds through this additional assistance, along with allocations based on their population sizes, are as follows:

Alabama $60,672,471

California $476,257,070

Florida $238,864,755

Georgia $126,650,987

Illinois $166,352,726

Indiana $82,762,859

Kentucky $55,588,050

Michigan $128,461,559

Mississippi $38,036,950

Nevada $34,056,581

New Jersey $112,200,638

North Carolina $120,874,221

Ohio $148,728,864

Oregon $49,294,215

Rhode Island $13,570,770

South Carolina $58,772,347

Tennessee $81,128,260

Washington, DC $7,726,678
The second program,  The HUD Emergency Homeowners Loan Program, which is part of the Dodd-Frank Bill, will complement Treasury's Hardest Hit Fund by providing assistance to homeowners in hard hit local areas that may not be included in the hardest hit target states. Those areas are still being determined.

The program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment "bridge loan" (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must:

1) Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;

2) Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;

3) Demonstrate a good payment record prior to the event that produced the reduction of income.

HUD will announce additional details, including the targeted communities and other program specifics when the program is officially launched in the coming weeks


  1. Another gift from Fr-odd. They just keep popping up everywhere.

  2. I'd take the 50k and go put it all on red, if I win, awesome, if I lose, oh well, it's a non-recourse loan, and I was probably going to lose the house anyway.

    (Although they likely will not give the borrower 50 grand, they will just give it straight to the lender, but it's a funny thought)

  3. SO evil. For a moment, I thought "Hmm, New Jersey is getting $112 MILLION, how can I get a piece of that...

  4. should have done that in the first place instead of bailing the car companies out

  5. Doesn't this sound like buying votes?
    The liberal commie democrats know they will lose seats in the House and the Senate this coming November, and they will spend our tax dollars to buy votes.
    Whittier, CA

  6. Tailor-made program for "non-profits" like ACORN and for their "clients", the usual suspects, in "hard-hit local areas". Welfare at its best!

  7. Our political system is about nothing but buying votes and keeping the two-party dictatorship going. Change is going to come fairly soon.

  8. "Let them eat cake" seems to be the attitude. French Royals tried it. Didn't seem to work. Out of touch with reality. Off with their heads. . .
    If you want jobs, equalize the currency exchange between China and US currencies. Or put some really good isolationist policies in place. No wars without congressional approval and make it stick. Tariffs against foreign competition. Take an example from the Swiss. Quit printing money. Then settle back for a reversal of the inflation and a collapse of the current system. That means prices going down to meet actual values. Probably won't happen. That is what needs to be done and none of the politicians are ready to do it. The jails are full of people using language like Shoulda, Coulda, Woulda. I suggest we look at our billionaire class and see how counterfeit money benefits them.

  9. You know I don't want to complain about my luck, but I own an investment that invested in MBS's. I had it from back in 2006 and it went from $100k down to $2500 in late 2008 and stayed there until July of last year. I sold it a month ago for $89000. There is no doubt that I benefited from the very programs I detest, which makes me wonder if these programs are really for the ultimate benefit of people that hold mortgage debt. Anyhow, I am not complaining since in my mind I wrote off the $100k in 2008.

  10. own should be owned

  11. Gee, I notice you all never bitch this much about the bailouts (stolen from the taxpayer by Bushie) or the machinations of the MNC's that manipulate monetary policy to blow bubbles internationally so they can do more business overseas.

    Instead you scream class warfare at people, mostly but not all, of whom have had their jobs stolen by economic manipulation at the top.

    None of you DEADBEAT welfare queens such as cops, ranchers, big farmers, defense contractors, Boeing employees, all on the public dole, have a clue and you trip over yourselves to apologize for your slave masters in big government. As long as it's YOUR big government. Sad and stupid.

    You should all read "How to Make an American Job Before It's Too Late" by Andy Grove (billionaire [you worship those] industrialist [you worship those], founder [you worship those] of INTEL, and escapee of the 1956 Hungarian revolution [you worship those]) before screeching any more verbal diarrhea .

  12. @Daniel Miller

    Oh yeah, I was a big fan of Bush and crew:

  13. Love that headline!!

  14. Nothing for Arizona?

  15. Who is John Galt?

  16. Despicable and Repulsive parties are one the same; they both make my skin crawl. At the end, if "we the people" would keep voting "D" vs. "R" then we do not deserve nothing better than what we have now.