Is Obama preparing a trillion-dollar, mass refinancing of mortgages?

People who are underwater on their homes does not mean that they bought homes beyond their means. Every market got hit...houses that appraised for $100,000 4 years ago now appraise for $60,000 for example. The housing market crash didn't discriminate. To say that HARP or HARP 2.0 is made to bail out people that bought beyond their means isn't really fair. If an honest hardworking American family bought a house in 2005 for $100,000 and can't refi now bc it only appraises for $60,000, does that mean that the family was irresponsible?

No.

I would say that I have turned down hundreds of families looking to refi b/c of this exact scenario. If this program eases the Fannie and Freddie guidelines and allows them to refi then it would put more money in their pocket to spend and to add back to the economy. It would also probably allow the family to remain in the house so that the bank doesn't have yet another foreclosure on the books.

Chances are, if you are reading this right now and you are a homeowner, you may benefit from such a move by this administration.

 

No, I do not create false personalities. However, I do sometimes play the devils advocate around here on one-sided issues.

Perhaps you have a perspective on what I advocate and what I critique, but to assume you know what I think and believe is a stretch. My beliefs and my thought processes are complex and all over the map.

 

Likewise, I bought a modest house and paid it off in 15 years. A plan to refinance mortgages for those in trouble is fine by me as long as it doesn't involve a government bailout. Why must I be content with my small house as a reward for being frugal and responsible while those that were irresponsible (or at least speculative and unwise) get assistance to pay for their mini-mansions?

 

I would say, honestly that about 2% of the homeowners that I speak with are on adjustable rate mortgages right now.....and they are mostly military families that expect to move within 5-7 years and are enjoying REALLY low rates right now. It's hard for me to talk them into refinancing to a fixed bc they are paying such a low rate on an ARM right now...even at 3.875% their payment would go up.

 

Using that logic, are you being "penalized" b/c you could have waited until now to buy the same house for probably 30% less than what you paid for it then?