$300 Billion Housing Rescue Package

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willows

27 Posts

Posted - 05/02/2008 : 07:52:27 AM

Just saw an article about this deal that passed through the House 46-21 to advance the bill. What exactly is this deal? Does it actually open the floodgates on folks that are upside down? Does it essentially make FHA Secure a workable program finally?

http://www.journalgazette.net/apps/pbcs.dll/article?AID=/20080502/NEWS03/805020363

dnuex2

2996 Posts

Posted - 05/02/2008 : 08:31:20 AM

Maybe this guy can help as well:

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/050108dnmetbillion.b623795f.html

willows

27 Posts

Posted - 05/02/2008 : 09:54:59 AM

lol

dwmordue

452 Posts

Posted - 05/02/2008 : 09:57:19 AM

So how much of that is going to Halliburton?

dwmordue

452 Posts

Posted - 05/02/2008 : 10:01:26 AM

These numbers that they come up with are rediculous.

The bottom line is that the vast majority of people who qualified with a 55% back ration on a 4.5% interest only 5/1 ARM 5 years ago can not even come close to qualifying on full am, PITI loans that also have MI.

Unless FHA is going to allow 125% LTV's and back ratios of 85%, this is just futile.

If a house in Irvine that was worth $500k Last year is worth $300k today and the borrowers owe $450,000 on it, I see no logical way that FHA can remedy this type of situation.

Of course, logic does not play any role in government decision making.

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