About Those Foreclosure Statistics
Former major league baseball player Jose Canseco:”said on Thursday he had lost his California mansion to foreclosure ” one of the first celebrities to publicly admit being a statistic in the U.S. housing crisis,” the Associated Press said.
In comments to the TV show “Inside Edition,” Canseco says, “It didn’t make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else.”
More from the Associated Press: “Canseco, 43, one of the most flamboyant U.S. baseball players until his retirement from the major leagues in 2001, told the celebrity TV show ‘Inside Edition’ that it did not make financial sense to keep his 7,300-square-foot home in the Los Angeles suburb of Encino. ‘Inside Edition’ said it had foreclosure documents showing Canseco owed a bank more than $2.5 million on the house.
What part of the housing crisis is he a portion of? He had the means to pay the mortgage but chose not to.
MM points out:
political rhetoric absolving borrowers of their responsibilities ” and encouraging them to spend, spend, spend even more ” has made it possible. And so has federal legislation intended to “help.” The omnibus spending bill passed last year prevents the IRS from taxing mortgage forgiveness as income up to $1 million for a two-year period. Some people are bailing because they’ve lost equity and value in their properties; some are bailing for cheaper homes in the same neighborhoods. There’s even a term that’s become popular over the last couple of years ” “Jingle Mail” ” that describes when homeowners cut loose and mail in the keys to the bank. Ho, ho, ho. The true victims in this “crisis” are those who paid for homes within their means and those who waited to enter the housing market.
As she was typing that, the House of Representatives Financial Services Committee on Thursday approved a sweeping bill to enable the government to finance $300 billion in distressed mortgages with the aim of helping 2 million homeowners.
The legislation, approved by a 46-21 vote, would provide an infusion of capital and new mandate for the Federal Housing Administration to guarantee home loans when a property has sunk in value since the mortgage was written.
Lenders would have to erase a portion of the original loan in order to secure a government guarantee on future payments.
Here are some of the highlights of that:
Eligibility Requirements for Existing Loans (Requires All of the Following):
- Owner-occupied principal residences only (no investors, speculators or second homes), and borrowers must certify that they do not own any other homes;
- Existing senior loan being refinanced must have been originated on or before December 31, 2007;
- To remove any incentive for borrowers to “purposely default,” the borrower must have had a mortgage debt-to-income ratio of no less than 35 percent as of March 1, 2008, and must certify that he/she has not intentionally defaulted on existing mortgage(s) and did not obtain the existing loan fraudulently;
- Participating mortgage holders/investors must waive any penalties or fees on the existing mortgage and must accept proceeds of the new loan as payment in full; and
- Existing mortgage holders/investors must accept their losses – taking substantial write-downs sufficient to: (1) establish a 3 percent loan loss reserve for the FHA; (2) pay the origination and closing costs for the new loan up to 2 percent; and (3) bring the loan-to-value ratio on the new FHA-guaranteed loan down to no greater than 90 percent of property’s current appraised value, resulting in a substantial reduction in debt service to the borrower. Accordingly, to qualify mortgage holders would need to accept a substantial write-down, accepting as payment in full no more than 85 percent of the property’s current appraised value.
Requirements for New FHA-Insured Loans:
- New FHA loans must be properly underwritten and must be based on current appraised value of the house and borrower’s documented income (borrowers with higher – but not disqualifying – debt levels would need to make six months of timely payments at the new payment level to qualify for the guarantee);
- New FHA loan must extinguish all existing liens and substantially reduce the borrower’s mortgage debt service;
- New FHA loans under this program must be within the FHA loan limits now in effect under the stimulus for the duration of this program;
- Oversight Board will set reasonable limits on loan fees and interest rates; and
- To reduce costs to the government – and avoid inappropriate enrichment to the borrower – the government will retain a share of the borrower’s future profits. When the borrower sells the home or refinances the loan, the borrower will pay from any profits the higher of (1) an ongoing exit fee equal to 3 percent of the original FHA loan balance; or (2) a declining percentage of any net proceeds attributable to home appreciation (i.e., from 100 percent in year one to 50 percent in year four and thereafter minus the fees the borrower has paid into FHA).
Trackposted to <a href=”http://poohflingingneocons.blogspot.com/2008/05/is-it-just-me.html”>Pooh Flinging NeoCons</a>, <a href=”http://www.themadpigeon.com/diary_of_the_mad_pigeon/2008/05/thursday-open-r.html”>Diary of the Mad Pigeon</a>, <a href=”http://rosemarysthoughts.blogspot.com/2008/05/to-all-enemies-of-usa.html”>Rosemary’s Thoughts</a>, <a href=”http://allieiswired.com/archives/2008/05/allies-wired-hot-links-79/”>Allie is Wired</a>, <a href=”http://www.womanhonorthyself.com/?p=4987″>Woman Honor Thyself</a>, <a href=”http://mccainblogs.com/2008/05/02/mccainiac-weekend-linkfest-sticky-52-54/”>McCain Blogs</a>, <a href=”http://righttruth.typepad.com/right_truth/2008/05/you-cant-fact-1.html”>Right Truth</a>, <a href=”http://www.anniemayhem.com/cgi-bin/wordpress/?p=1401″>The World According to Carl</a>, <a href=”http://www.thepiratescove.us/2008/05/02/pirate-weekend-linkfest-sticky-post-5254/”>Pirate’s Cove</a>, <a href=”http://thepinkflamingo.blogharbor.com/blog/_archives/2008/5/2/3671428.html”>The Pink Flamingo</a>, <a href=”http://caosblog.com/7752″>Cao’s Blog</a>, <a href=”http://wolfpangloss.wordpress.com/2008/05/01/mayday-poem-and-open-trackbacks/”>Wolf Pangloss</a>, <a href=”http://www.dequalss.com/wp/2008/05/02/columbia-free-trade-agreement-made-simple/”>Democrat=Socialist</a>, <a href=”http://www.anewtone.com/2008/05/war-news-idiots-of-mission-accomplished.html”>A Newt One</a>, and <a href=”http://www.yankeesailor.us/?p=709″>The Yankee Sailor</a>, thanks to <a href=”http://www.linkfests.us”>Linkfest Haven Deluxe</a>.
<a href=”http://www.linkfests.us/”><img src=”http://photos1.blogger.com/blogger/307/106/320/linkfest.jpg” alt=”Linkfest Haven, the Blogger’s Oasis” /></a>
May 2, 2008 - 09:10 AM on May 2nd, 2008
Revisiting Obama’s Liberation Theology Church
Here is a summary of some important points about the grave dangers of Liberation Theology written in 1984 by Joseph Cardinal Ratzinger (Pope Benedict XVI).
May 2, 2008 - 09:20 AM on May 2nd, 2008
Friday Reading
Only three things in life make it worth living’: Guitars tuned good, Open Threads, and firm-feelin’ women. (not necessarily in that order)
…
May 2, 2008 - 10:06 AM on May 2nd, 2008
On Liberty
Cutting off (or shouting down) debate on an issue to avoid having to deal with facts is the mark of a weak argument, which says a lot about most fake liberals’ arguments.
…
May 2, 2008 - 05:08 PM on May 2nd, 2008
It is worthless to paid money if anyone own the property. and the information about Home loan that post in here it is helpful. Thank you for posting this post.
May 2, 2008 - 05:53 PM on May 2nd, 2008
From the mind of Jose.
CRIPES!!!!
May 2, 2008 - 06:12 PM on May 2nd, 2008
THE D=S STORE HAS BEEN UPDATED!
Now stop drooling like a slack jawed yocal and go on over and buy something! Those new mud tires aren’t gonna buy themselves you know!
Trackposted to Pooh Flinging NeoCons, Rosemary’s Thoughts, Right Truth, Cao’s Blog, Diary of…
May 2, 2008 - 09:31 PM on May 2nd, 2008
Jose Canseco Victim of Personal Stupidity, High Taxes, Not Economy
MALKIN BLOWS THIS ONE!”…”Let’s say it’s $35 million … you’re paying the government 41 percent. That leaves you with about $17 or $18 million….”Jose Canseco blames much of his financial failure on the high costs of taxes and coughing up some…
May 2, 2008 - 10:57 PM on May 2nd, 2008
[...] player Jose Canseco?????said on Thursday he had lost his California mansion to foreclosure ?? onehttp://rightvoices.com/2008/05/02/about-those-foreclosure-statistics/AFX UK Focus 2008-05-02 17:03 Treasury sent out 7.09 bln in stimulus payments this week Interactive [...]
May 3, 2008 - 12:14 AM on May 3rd, 2008
Hmmmm I may have to go get one of those government guaranteed loans. Sounds like a great way to get rid of the negative equity caused by so many illegal aliens in the area going belly up on loans they shouldn’t have gotten in the first place. Illegal aliens getting loans they can’t legally work to repay, to buy houses that they can’t live in legally, at prices they can’t afford. My next door neighbor’s house was just sold on auction because as soon as the employer sanction bill went through, he packed up the wife and 5 kids and went back to Mexico.
May 3, 2008 - 02:01 AM on May 3rd, 2008
War News: About That War For Oil Lie
This is yet another example of the plethora of straws that the Leftinistra are trapped into grasping for no other reason than to prove to everyone that comes across their posts to realize just how scared they are
May 3, 2008 - 04:21 AM on May 3rd, 2008
Blogs For Borders Video Blogburst
I have this week’s up a bit early. They released it a couple of days ago to coincide with May Day… Our weekly video podcast/vlog on illegal immigration and border security issues. In this weeks edition… May Day 2008: Chicago!…
May 3, 2008 - 06:23 AM on May 3rd, 2008
[...] Faultline USA, third world county, McCain Blogs, Woman Honor Thyself, The Pink Flamingo, , Right Voices, and The Yankee Sailor, thanks to Linkfest Haven Deluxe. Sphere: Related Content If you liked [...]
May 3, 2008 - 06:23 AM on May 3rd, 2008
[...] Faultline USA, third world county, McCain Blogs, Woman Honor Thyself, The Pink Flamingo, , Right Voices, and The Yankee Sailor, thanks to Linkfest Haven Deluxe. Sphere: Related Content If you liked [...]
May 3, 2008 - 11:15 AM on May 3rd, 2008
If Chuck Baldwin Were Elected POTUS
THE ‘TRUE’ CONSERVATIVE AGENDAFrom Border Fire Report (for what it’s worth) I keep telling you there are many conservatives who are not Republican. These are the individuals who have been doing all the agitating – and we’re not talking Ro…
May 3, 2008 - 01:10 PM on May 3rd, 2008
THE BASIS FOR A STRONG NATION – FOREIGN RELATIONS (THANK GOD I’M NOT RUNNING FOR PRESIDENT
THE BASIS FOR A STRONG NATION By R.J. Godlewski © May 3, 2008, All Rights Reserved 10. FOREIGN RELATIONS (THANK GOD I’M NOT RUNNING FOR PRESIDENT) There’s an old saying that God created families so that people would learn to
May 3, 2008 - 02:04 PM on May 3rd, 2008
[...] Shadowscope, Pirate’s Cove, The Pink Flamingo, Cao’s Blog, , Democrat=Socialist, , and Right Voices, thanks to Linkfest Haven [...]
May 3, 2008 - 03:22 PM on May 3rd, 2008
58% Think Obama Denouced Wright to save face
Hat tip, Hot Air.Most people aren’t buying it. The plausibility of knowing Rev Wright for twenty years, attending his church, and even featuring some of his sermons in his book, but not knowing Wright’s beliefs, is not selling. A Rasmussen
May 3, 2008 - 04:14 PM on May 3rd, 2008
How to Identify Phishing: “IRS” Case Study
Thank god I have experience with computers. You see, I got this in my email this afternoon: And no, my spam trap didn’t catch it! Sure looks legit, doesn’t it? Says it’s from not-reply@irs.gov, has an official looking banner… But
May 3, 2008 - 09:10 PM on May 3rd, 2008
The I.D.F. Kills Shalit Kidnapper
You may catch him bending and gently pulling from his bag,
An Israeli, an American flag.
…
May 3, 2008 - 10:30 PM on May 3rd, 2008
Stealth Conservatives, Not Republican, Against the GOP
THEY BETRAY THEIR “CONSERVATIVE”IDEALSI think there is this false perception that I do not like conservatives, and have something against them. In a way that is true. I am conservative. The only change I’ve been through in abou…
May 4, 2008 - 12:50 AM on May 4th, 2008
[...] county, McCain Blogs, Woman Honor Thyself, Pirate’s Cove, The Pink Flamingo, Wolf Pangloss, , Right Voices, and The Yankee Sailor. Also thanks to Linkfest Haven [...]
May 4, 2008 - 07:01 AM on May 4th, 2008
The “If I Were Temporary Supreme Dictator Of The US” Meme
Several fine bloggers who I respect posted on this topic on Friday, and I’d like to take a shot at it. Q: Suppose you were elected Temporary Supreme Dictator of America. What ten laws would you pass/repeal or government programs…
May 4, 2008 - 07:47 AM on May 4th, 2008
BLOG, RSS & THE NEED FOR SCHLITZ
Being new to, and completely overwhelmed by, the sheer volume of technology in use on the web, sometimes I feel like a guy driving in a white out snow storm. Knuckles white on the wheel, wipers full blast, Slayer blasting from my vintage mp3 player a…
May 4, 2008 - 08:29 AM on May 4th, 2008
Students Rights Under Fire
Podcast Show Notes
Joined for most of the show by Stacy Harp.
A principal in Virgina orders a student to remove her pro-life t-shirt. (Hat Tip: Don Surber.)
A student in New Mexico is punished for planning (not actually doing but planning) a pro-life p…
May 4, 2008 - 09:16 AM on May 4th, 2008
McCain to borrowers: Stop paying your mortgage!
May 4, 2008 - 09:48 AM on May 4th, 2008
Frank Rich of the NYT Should Look Left for Racists
Frank Rich of the New York Times has a piece out today asking why Obama’s pastor has received so much scrutiny when McCain’s has not. Rich is referring to John Hagee, an absolute nut job, who has endorsed John McCain. According to Rich, O…
May 4, 2008 - 08:16 PM on May 4th, 2008
Conservatives & Ron Paul Bot Cost GOP House Seat In LA Last Night
WAS JENKINS IMMIGRATION POSITION A LOSER?Once again sore-headed LOOSER conservatives have triumphed. Last night, in Louisiana, Republican turned Independent, Ashley Casey, cost the Republicans yet another house seat. If her votes had gone t…
May 5, 2008 - 08:26 AM on May 5th, 2008
I’M MONDAY AND IT’S DRUNK – OPEN PANTSBACK THING
Nah not really….
I changed the theme again, the twelve step program isn’t working and I am thinking of just going with it. My sponsor wasn’t in this morning when I tried to call so for that, a big “failed sponsor” sh…
May 5, 2008 - 12:41 PM on May 5th, 2008
A Non-Bitter Story About the New Laptop
Bruce’s new laptop arrived on Thursday evening, and he has been spending most of the past three days setting it up. I say “most” because change of any sort is extremely stressful to Bruce, so he would periodically do some…
May 5, 2008 - 05:02 PM on May 5th, 2008
Cyclone Nargis rips through Myanmar
UPDATE: The estimates of loss of life continue to grow. The UN has been granted access by the military government and is rushing aid to the devestated country
May 5, 2008 - 05:05 PM on May 5th, 2008
Free SpeecH only for LiberalS
Wherever Conservatives are invited to speak, Libs storm the stage and disrupt the event.
Free Speech only for Lefties?
…
May 6, 2008 - 06:14 AM on May 6th, 2008
[...] Cove, The Pink Flamingo, Wolf Pangloss, Gulf Coast Hurricane Tracker, , Dumb Ox Daily News, Right Voices, Stageleft, and The Yankee Sailor, thanks to Linkfest Haven Deluxe. Sphere: Related Content [...]
May 6, 2008 - 03:49 PM on May 6th, 2008
School Stupidity of the Year (Decade?) Award goes to Land O’ Lakes Florida: Teacher fired for “Wizardry” for making a toothpick disappear
I’ve been offline for a week, and when I come back, what awaits me? The most ignorant stupid thing I have seen thus far this year.
Fla. Teacher Accused Of Wizardry: Man Made Toothpick Vanish In Class
Teacher Jim Piculas d…
May 6, 2008 - 09:34 PM on May 6th, 2008
NY Post writes about Olmert’s scandal investigatio
And tells about a millionaire in the midst of it (via My Right Word and NFC):
May 10, 2008 - 11:09 PM on May 10th, 2008
[...] player Jose Canseco?????said on Thursday he had lost his California mansion to foreclosure ?? onehttp://rightvoices.com/2008/05/02/about-those-foreclosure-statistics/Art Galleries Palo Alto Weekly”A Day in May” To honor the change of season, the Portola Art Gallery [...]
May 12, 2008 - 08:30 AM on May 12th, 2008
[...] player Jose Canseco?????said on Thursday he had lost his California mansion to foreclosure ?? onehttp://rightvoices.com/2008/05/02/about-those-foreclosure-statistics/Fannie’s Alt-A Issue ForbesThe government-sponsored mortgage firm reported 946 million in Q1 Alt-A [...]
May 30, 2008 - 09:03 AM on May 30th, 2008
[...] player Jose Canseco?????said on Thursday he had lost his California mansion to foreclosure ?? onehttp://rightvoices.com/2008/05/02/about-those-foreclosure-statistics/Read advice from a financial adviser on the American Axle strike Detroit Free PressDo you have [...]
March 7, 2009 - 04:51 PM on March 7th, 2009
You made some good points there. I did a search on the topic and found most people will agree with your points.