Boom-Era Property Speculators to Get Foreclosure Aid
By Prashant Gopal – Mar 4, 2012 11:00 PM CT
The Obama administration will extend mortgage assistance for the first time to investors who bought multiple homes before the market imploded, helping some speculators who drove up prices and inflated the housing bubble.
Landlords can qualify for up to four federally-subsidized loan workouts starting around May, as long as they rent out each house or have plans to fill them, under the revamped Home Affordable Modification Program, also known as HAMP, according to Timothy Massad, the Treasury’s assistant secretary for financial stability. The program pays banks to reduce monthly payments by cutting interest rates, stretching terms, and forgiving principal.
This is the stupidest thing I have read in my life! I will be on the phone from now till I get in touch with everyone on Washington to rant on this stupidity. Those speculators should not get one penny of help and those who are guilty of fraud should be put into stocks where the public can throw tomatoes at their faces.
This special treatment of speculators should NOT happen.
I have of late become convinced that ALL government programs will be used by the greedy and corrupt to plunder the federal treasury and very possible crowd out some deserving from getting the help they need. What appears to be missing from this proposal is any real way to ferret out the lenders and borrowers who should be banned from participation in this solution. The avarice of these people corrupted the system once and will surely do it again. Most of these players should be put on a public blacklist and should never be allowed to lend or borrow using the housing industry and our homes as collateral. Send them to Las Vegas to play their games of chance.
Next, block anyone without a family from participating. Block anyone with more than a four bedroom house from participating. Block anyone who owns a house more than 3500 S.F. from participating. Block anyone whose home has lost more than a half million dollars in value from participating.
In other words, find those who bought a house that was way more house than they really needed and who have no family to get hurt and let the banks foreclose.
And, for those with families who own more than one house, force them to sell ALL homes they do not live in. Even the cabin in the woods. For those who are making a living from buying and selling homes, make them get business loans to do their financing and allow the foreclosure on all but the smallest house that fits their family.
This program should ONLY be used for sheltering the families from the consequences of this most recent deflation and recession. It should NEVER be allowed to support the foolish or the greedy.
Every case should be looked at by a jury of three peers who have been foreclosed on. I doubt if the jury will be generous to those who practiced fraud in the acquisition of their loans. I also do not think that the jury will be sympathetic to the poor guy from Chrysler.
If this giveaway must happen, then the speculators should be required by law to hold these properties until the first full year in which homebuilders are selling 1.2 million units per year. A quick flip to get their cash out of their bad investment is out of the question.
Life is not fair. But these SPECULATORS caused much of this pain and they, above all others, deserve to figure things out for themselves.
And right now, I am mad as hell! Speculator went too far with their risky games using houses as the gambling chips. And an estimated 60% of those speculators used fraudulent loans. Those in particular put themselves into a special class of scum. They deserve to be in jail. Or, is this a crime forgiveness program too? Only if they have a family should their family be spared the special distress of foreclosure on the house they live in. I am not against anyone who has only one loan from getting fair treatment, but the SPECULATORS should be whittled down to what they really are… pond scum. And this debt forgiveness should be for those who did not fuel the bubble. Six bedroom homes are an insult to the average American. Show me a man with 5 kids and a 6 bedroom house and I will tell him to his face what I think he deserves. He is at best overindulgent. At worst, he is a greedy jerk putting his family and their home at risk. Most larger-than-needed homes were built that size because buyers knew the impact fees would be lower than the construction cost of the extra bedroom. The demographics tell the taxing authorities that 6 BR homes contribute fewer students to the schools than a 3 or 4 BR and thus impact the school districts less. This is nearly ALL fraud and chicanery on the part of the buyers. They deserve no help from the government. They built that extra bedroom to defraud the schools out of their fair share of revenue.
Fraud does not seem to be enough of a crime to have them sent to jail. What should we do with these people?
And please don’t tell me we should bail out the poor Chrysler executive. I am sure the fact that he has two of his four rental properties in foreclosure makes him sad, but it is NOT MY PROBLEM! Get a job! Cut your losses and get on with life. Oh, so were you sleeping in college econ class where you were suppose to learn all about DIVERSIFICATION OF YOUR INVESTMENTS. Don’t you have at least a little cash reserves in CD’s or the stock market? What remedy do we have for the guys who use to build homes other than unemployment benefits that are not much better than the poverty level? Let’s all take up a collection for that poor Chrysler guy. Or, maybe he can move in with his mother. Or maybe he can get a job at the Chevy plant. I hear they are doing ok now. I just hope he doesn’t think he can get a job as a project manager building houses.