Gummit to the rescue: $300 billion for homeowners

From ABC News:

THE SENATE PASSES $300 BILLION HOUSING RESCUE PACKAGE TO AID HOMEOWNERS THREATENED WITH FORECLOSURE

Bailout or rescue? You decide.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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8 Responses to Gummit to the rescue: $300 billion for homeowners

  1. Andrew, I think that the lenders are bailing out and the tax payers are rescuing them. I have to say that I for one and oh so happy that my tax dollars aren’t going to traffic issues, public safety or public education, but instead to bail out some folks who made poor business decisions.

    I’m planning on opening a coffee shop on a deserted road with free wifi, in an indigent area of Virginia. I am glad to know that there may be federal “rescuing” available for my obviously bad decision one day.

  2. …should have completed that cynical thought.

    I really feel that the lenders have known and expected the government to come in and “rescue” them since well before this mortgage crisis.

    I honestly think that their mindset about this is why they have such horrible customer service and drag their feet in working with consumers who are trying to pursue short sales and loan work around. The longer they drag out all of theses processes, the better chance they have of getting this money from the government.

    This is not a homeowner rescue, it’s a Lender bailout.

  3. We should let the evolution of econmics and business clean house that way we have the smart ones work with when it all come back

  4. Jeremy Hart says:

    Baillout, plain and simple.

  5. Sam Chapman says:

    Although I feel badly for homeowners who are in trouble because they fell for the allure of “creative” financing, I can’t agree with the bailout. I wasn’t stupid when I got a mortgage and now my tax dollars are going out to someone who was either stupid or ignorant. This is a bit similar in a way to someone temped to drive 50 in a 35 zone because they don’t see any signs of trouble, but a cop is just around a curve. I would’nt forgive that driver either.

  6. Jeremy Hart says:

    I’m hesitant to agree, Sam, that decisions were made because of stupidity or ignorance across the board, it’s just a generalization I’m not willing to make. I had sellers a few months ago who thought that the second loan they had taken when they first bought their home didn’t have to be paid off – they didn’t understand what they had signed when they had signed their loan documents. I blame the loan officer who signed them up for that loan, as well as the agent they used to buy that home – someone didn’t take the time to explain what was going on. I guess it could be argued that they were stupid because they didn’t understand what they were doing, but there are multiple problems here.

    Just read a story this morning (can’t find the link now) about lenders who were in essence finding homes that were being sold for less than market value, then sold for more than market value, and the “profit” was being siphoned off to the people who were finding the deals, as well as the two mortgage folks behind the plot. It was something like $27 million that had been siphoned off since 2005. This is not a new problem, nor will it be the last time we hear about lenders, agents and homeowners who are conspiring like that.

    I guess the point I’m trying to make is that there are a lot of people responsible for this mess, it’s not just a result of ignorance.

  7. All I can say is we are in for a “historic” ride. It will be interesting to see how we loo back on these times…

  8. mike says:

    I heard there has been a rise in this for Boston Condos as well, and the state of Massachusetts is going to step in. I hope other states follow suit as well!

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