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Breaking News: HUD To Offer Interest-Free Loans To Distressed Homeowners

Tyler Durden's picture




 

So who were all those saying this is an insane plan?

BN   8:30 *HUD WILL OFFER INTEREST-FREE LOANS TO DISTRESSED HOMEOWNERS
BN   8:30 *HUD ANNOUNCES HELP FOR HOMEOWNERS IN PRESS RELEASE TODAY

Washington (AP) -- The Obama administration is providing $3 billion to unemployed homeowners facing foreclosure in the nation's toughest job markets.

The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.

Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.

The administration was required to launch the programs by the financial regulatory bill signed by President Barack Obama last month.

 

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Wed, 08/11/2010 - 11:34 | 515272 oklaboy
oklaboy's picture

imagine that, just in time for fall elections

Wed, 08/11/2010 - 11:43 | 515312 mikla
mikla's picture

Free stuff?  I want some!

And a pony.

Wed, 08/11/2010 - 11:52 | 515358 aheady
aheady's picture

You'll get nothing and like it.

Wed, 08/11/2010 - 12:02 | 515410 Takingbets
Takingbets's picture

Ha! I love that post!

You sure do know how to brighten up a gals day my friend. :-D

Wed, 08/11/2010 - 12:42 | 515573 Overpowered By Funk
Overpowered By Funk's picture

I miss the Hippy Dippy Weatherman. He had a ton of insight and comic genius. I bet he's having a good laugh at our peril.

Wed, 08/11/2010 - 12:02 | 515413 chunkylover42
chunkylover42's picture

here, how about some vaseline instead.  trust me, you'll appreciate it more than a pony anyway.

Wed, 08/11/2010 - 13:35 | 515774 knukles
knukles's picture

Whoa, slow down!  Let's not get ahead of ourselves here.  How about the pony, the Vaseline and some animal tranquilizers. 

New meaning to the Circus half of Bread and Circuses.

Wed, 08/11/2010 - 14:27 | 515924 Cognitive Dissonance
Cognitive Dissonance's picture

LOL

Looks like knukles has his freak on today. :>)

Wed, 08/11/2010 - 17:06 | 516525 Village Idiot
Village Idiot's picture

Knuckles for penetration! ;-)

Wed, 08/11/2010 - 12:27 | 515509 It is a bargin ...
It is a bargin my friend's picture

Now thats comedy

Wed, 08/11/2010 - 13:14 | 515705 aheady
aheady's picture

The vaseline AND the pony?

Wed, 08/11/2010 - 13:47 | 515805 JLee2027
JLee2027's picture


Free stuff?  I want some!

And a pony.

Thanks for the laugh!

Wed, 08/11/2010 - 21:01 | 516946 StychoKiller
StychoKiller's picture

I'm a homeowner AND I'm distressed (by all the insanity, that is!), so gimme a suitcase full of FRNs too!

Wed, 08/11/2010 - 11:48 | 515338 WaterWings
WaterWings's picture

The US Central Bank is so crafty. If I could guess what was next I'd be a rich asshole.

Wed, 08/11/2010 - 12:18 | 515470 surfsup
Wed, 08/11/2010 - 11:52 | 515363 BobWatNorCal
BobWatNorCal's picture

This is one of those multi-thousand page Bills the lawmakers

didn't have time to read, right?

Wed, 08/11/2010 - 11:53 | 515370 Ragnarok
Ragnarok's picture

Vote buying BS! Stop paying your taxes, stop consuming and throw their FRNs back in their face.

Wed, 08/11/2010 - 11:59 | 515396 Shameful
Shameful's picture

I expect what you mean by "throw their FRNs back in their face" is to buy gold/silver?  To make it more interesting to keep that scheme rolling.  I have little interest in throwing my labor away...now using it to create a little chaos and comedy on the other hand...

Wed, 08/11/2010 - 12:12 | 515452 Ragnarok
Ragnarok's picture

I guess what I mean by that is cash out of any paper promises denominated in USDs, buy real world items that can produce cash-flow (farms, oil wells, import/export of daily necessities) and yes some PMs.  It will not make a difference in the long run, but then I don't get upset I simply laugh.  Trying to get my family to do the same.

Wed, 08/11/2010 - 12:12 | 515384 Paper CRUSHer
Paper CRUSHer's picture

F*** Q.E.2 this is much more like it.Thank you Mr President......Dumb Bastards.

Wed, 08/11/2010 - 12:50 | 515603 Paper CRUSHer
Paper CRUSHer's picture

Mr President i dedicate this to you...

I used to be such a welfare stoner
I used to be such a twilight zoner
I used to be such a moneybumming boozer
I used to be such a masochistic schmoozer
But now I'm worldwide-
you know that I made it
I'm above the law -
I'm the zillion dollar sadist
Zillion dollar sadist
What do you want what do you want for nothing baby
What do you want what do you want for free
I tell you what you need,
it's some Hanky-action baby
I wanna hear you scream in denim ecstasy
Yes indeed
Cause now I'm worldwide-
you know that I made it
I'm above the law -
I'm the zillion dollar sadist
Zillion dollar sadist
Well c'mon

(solo)

http://www.youtube.com/watch?v=OL7jQZa6rmA

Wed, 08/11/2010 - 12:00 | 515398 Popo
Popo's picture

Let's do that whole 'bubble' thing again!  Yay!

Wed, 08/11/2010 - 12:54 | 515627 LePetomane
LePetomane's picture

Public sector employment demands it!

Wed, 08/11/2010 - 18:53 | 516719 techperson
techperson's picture

Silicon Valley bumper sticker circa 2004:

"Please, God, Just One More Bubble"

Wed, 08/11/2010 - 12:02 | 515408 gringo28
gringo28's picture

take a look at the recipient states, CA is by far the largest at 500mm. nice way to play the big give is MREITs. at least you get something for your tax dollar......

Wed, 08/11/2010 - 19:13 | 516744 Buzz Fuzzel
Wed, 08/11/2010 - 11:36 | 515275 IrishSamurai
IrishSamurai's picture

Moral Hazard on Steroids, Bitchez!

Wed, 08/11/2010 - 11:36 | 515276 Pegasus Muse
Pegasus Muse's picture

Vote every incumbent out.

Wed, 08/11/2010 - 11:38 | 515293 RSDallas
RSDallas's picture

Yes Yes Yes

Wed, 08/11/2010 - 11:42 | 515313 Tense INDIAN
Tense INDIAN's picture

i think all AMRICANS should be seriuosly thinking about their GUNS now and not about vote.....well forgive me for being suspicious...even RON PAUL looks like a controlled opposition to me( why is his son advocating war with IRAN; a true patriot will always know that is wrong).................

Wed, 08/11/2010 - 12:16 | 515463 NotApplicable
NotApplicable's picture

The father is not the son. Nor vice versa.

Wed, 08/11/2010 - 12:42 | 515571 MSJChE
MSJChE's picture

Rand realizes he has to cater to the typical neocon to get elected.  I think (hope) he's just keeping his real opinions close to his chest until November.

 

First post, btw.

Wed, 08/11/2010 - 15:43 | 516189 ATTILA THE WIMP
ATTILA THE WIMP's picture

Peter Thiel is one of Ron Paul’s main advisors (read handler) and Mr. Thiel is a Bilderberger 

http://www.nndb.com/people/030/000124655/

Wed, 08/11/2010 - 13:41 | 515787 quartshort
quartshort's picture

"REMEMBER IN NOVEMBER!"

Wed, 08/11/2010 - 17:09 | 516530 Village Idiot
Village Idiot's picture

"REMEMBER IN NOVEMBER!"

 

Run the bumper sticker presses!!!

Wed, 08/11/2010 - 11:42 | 515277 ATG
ATG's picture

Rearranging debt chairs on the USS Titanic.

As usual with PPIP, TALF and TARP bailouts for the banks and not the people, the devil in the details.

Obrama Brand and Made in USA died...

http://www.infowars.com/wave-goodbye-to-brand-obama/

Wed, 08/11/2010 - 11:36 | 515278 rubearish10
rubearish10's picture

Government leadership "rule of thumb": Give to those who make the worst mistakes and exploit the children (by keeping teachers). Wow, what world...

Wed, 08/11/2010 - 11:40 | 515296 IBelieveInMagic
IBelieveInMagic's picture

Better to employ teachers than to fund our young to kill other human in endless wars. That is soul destroying! 

Wed, 08/11/2010 - 11:52 | 515367 rubearish10
rubearish10's picture

Didn't think of that outcome.....ummm better do some of my own soul searching??? What have i missed? Are you a teacher? Sorry but comment was a macro fundamental and political remark, that's all. Over and out.

Wed, 08/11/2010 - 12:07 | 515421 ColonelCooper
ColonelCooper's picture

I junked you.

Who the Hell said it was an either or proposition?

Wed, 08/11/2010 - 12:25 | 515500 IBelieveInMagic
IBelieveInMagic's picture

I don't see such raging concerns being expressed when nearly trillion dollar defense budgets are routinely passed annually with minimum of coverage (more than defense spending of hundreds of countries combined). Just sayin... 

Wed, 08/11/2010 - 12:38 | 515553 ColonelCooper
ColonelCooper's picture

That's a perfectly logical comment, but your original comparison has nothing to do with the topic of this thread.  Maybe if the Gov. wasn't so eager to prop up the lifestyle of people who can't/won't support themselves, those people would make more of an effort to stay informed, and have more raging concerns than who's going to be on Dancing with the Stars this go around.

I would say that you find more raging against the U.S. Military machine on ZH than any other place where the average user isn't a Libertarian just because they're pro bong hits.

This is simply an effort to buy some continued apathy.

Wed, 08/11/2010 - 12:42 | 515579 Mactheknife
Mactheknife's picture

You knowwhat they say, "Those that can, do; those that can't, teach."

Wed, 08/11/2010 - 13:24 | 515742 MachoMan
MachoMan's picture

And then if you want to impose de minimis standards on them via testing/peer review, they get all uppity...  as if they might actually have to compete for a job and/or care about their performance. 

Wed, 08/11/2010 - 15:27 | 516128 Raymond K Hessel
Raymond K Hessel's picture

....and those that can't teach, teach gym!

 

Guffaw!

Wed, 08/11/2010 - 12:42 | 515580 Mactheknife
Mactheknife's picture

You know what they say, "Those that can, do; those that can't, teach."

Wed, 08/11/2010 - 14:58 | 515902 DosZap
DosZap's picture

Here's your Government.......................in action!

http://www.ajc.com/news/atlanta/crowd-waiting-for-housing-589653.html

This shit makes me sick.

Don't get me started on screwls.

$8,000.00 per student per year, and 70% of them cannot even pass 6th grade classes............most cannot even read, or write, and never graduate High School.

This is public edumacation at it's best.

Until the NEA is brought down, and Vouchers are issued to parents...........

We will still pay more per student to come up with the most illiterate amongst the rest of the civilized world.

Wed, 08/11/2010 - 22:52 | 517089 StychoKiller
StychoKiller's picture

"Everything you Know is Wrong" ISBN: 978-1-56731-637-7, Chapter entitled "Some Lessons from the Underground History of American Education" pretty much explains all you need to know on WHY this is happening.

Wed, 08/11/2010 - 11:37 | 515279 bonddude
bonddude's picture

So let's all get distressed.

How many times until we know this doesn't work?

Wed, 08/11/2010 - 11:36 | 515280 VK
VK's picture

Dumb a$$holes!!

Wed, 08/11/2010 - 11:39 | 515286 Oswald Spengler
Oswald Spengler's picture

Why not cut out the middle man (homeowner, sic) and get the money straight to the bankers. Their going to foreclose eventually anyway.

Wed, 08/11/2010 - 11:38 | 515290 Misean
Misean's picture

Maybe they can throw in a free 7 year auto roll over loan too!

Wed, 08/11/2010 - 11:38 | 515291 Trundle
Trundle's picture

Pay them to stay in their homes.

Then tax the shit out of the productive by shaking them upside down in the corner to remove the last quarters from their pockets!

 

Wed, 08/11/2010 - 15:00 | 516027 DosZap
DosZap's picture

Trundle,

Bro, In essence that's exactly what theiy ARE doing.

Wed, 08/11/2010 - 11:39 | 515295 firstdivision
firstdivision's picture

Distressed...the new killin' it.

Wed, 08/11/2010 - 17:12 | 516538 Village Idiot
Village Idiot's picture

"Distressed...the new killin' it."

 

Distressed, I'm luvin' it!

Wed, 08/11/2010 - 11:41 | 515300 Dr. Richard Head
Dr. Richard Head's picture

So I have kept up with my house payments and have accelerated the payments in order to get rid of this franctionally reserved loan, all of the while being completely under water on the house.  My guess is people like me don't qualify. 

It's not left versus right, it's the state versus you.

Wed, 08/11/2010 - 15:06 | 516041 DosZap
DosZap's picture

Dr.

Nope,if you have any savings, a job your screwed.......

But, in a good way..............you have Character...............doing what's right, while everyone else is taking the easy way out.

(There are hundreds of thousands that cannot help their situations, and this statement does not apply to them, just the one;s who could pay, and walked..........not so good).

There are thousands on this site who paid for their homes as they should......

Just as the Gv't is crooked, bailing oput Blue States fiancially, while Red states get nothing....now, that should be illegal........matter of fact it is.

IF we had a Gv't that followed the Const.............or could spell it.

Because two wrongs do not make a right.

Wed, 08/11/2010 - 11:41 | 515301 glenlloyd
glenlloyd's picture

any way you slice it it's just more debt.

Wed, 08/11/2010 - 18:39 | 516699 drwells
drwells's picture

Ding ding ding

Wed, 08/11/2010 - 11:40 | 515302 jbc77
jbc77's picture

Your kidding right?

Wed, 08/11/2010 - 11:41 | 515303 Bill Lumbergh
Bill Lumbergh's picture

No doubt the market may see some positive lining in this absurdity but intelligent people will see this as an act of desperation as the economy is truly buckling.

Wed, 08/11/2010 - 13:27 | 515748 MachoMan
MachoMan's picture

In the scheme of things, it's just a little fluff money to cheap whores.

Wed, 08/11/2010 - 13:59 | 515845 Breaker
Breaker's picture

You are mostly right. Note, this is going into the "hardest hit job markets." So it is targeting minority areas. Mortgage rewrite money in minority areas usually gets to homeowners via promotion by groups like ACORN (now reconstituted under other names). "ACORN" gets a big fat commission to make the deal. A good deal of that money will be collected by "ACORN" and returned to democrat candidates as contributions.

So in addition to the cheap whores, congress is subsidizing itself with this one. So the expensive whores will get some of the fluff money. Same thing happens with union bailouts.

Wed, 08/11/2010 - 11:40 | 515304 LoneStarHog
LoneStarHog's picture

The Genesis of revolution!

Wed, 08/11/2010 - 12:28 | 515310 Ragnarok
Ragnarok's picture

.

Wed, 08/11/2010 - 11:42 | 515314 the not so migh...
the not so mighty maximiza's picture

woopy, I can refinance too 0%, now I got to find me a job.

Wed, 08/11/2010 - 11:42 | 515316 stoverny
stoverny's picture

more bank bailout in disguise

Wed, 08/11/2010 - 12:23 | 515502 taraxias
taraxias's picture

Shirley, pay the man!

Wed, 08/11/2010 - 11:44 | 515318 bob_dabolina
bob_dabolina's picture

This is fucking bullshit.

Next: Interest free loans for losing stock positions, money lost in vegas, money lost from dog fight betting gone awry.

Wed, 08/11/2010 - 11:57 | 515388 Rebel
Rebel's picture

What bothers me most about it is the "targeted" part, where distressed states are rewarded for poor management at the expense of states that were responsible. Doesn't really matter at this point, as I believe we went past the tipping point some time ago, and are now just waiting for the pain of the crash.

Sort of like jumping off a ten story building . . . it is the last inch that kills you.

Wed, 08/11/2010 - 12:04 | 515420 kridkrid
kridkrid's picture

I bet it isn't what bothers you the most... but I understand what you are saying... it's kind of the cherry on top of the absurdity.  This is the Great Depression all over again, no?  Just throw random sh-t on the wall... things that rational people can clearly see is utterly irrational, and hope that it works.  It's like slaughtering millions of pigs to raise the price of pork. 

Wed, 08/11/2010 - 12:19 | 515471 Rebel
Rebel's picture

You are right, it is absurdity piled on absurdity. 

We are due a huge amount of pain, and wished we would have just taken it two years ago, and not had the bailouts. They are just pushing out the inevitable, and the longer we delay it, the worse it will be.

Sometimes I wonder if they are really that stupid, or if they are just holding on hoping for a miracle.

Wed, 08/11/2010 - 13:50 | 515817 JLee2027
JLee2027's picture

I'm waiting for the million dollar handout checks to be sent to all US Citizens. Why not?  It's only phony money.

Wed, 08/11/2010 - 14:32 | 515941 FortyTwoIsTheAnswer
FortyTwoIsTheAnswer's picture

They are stupid, like foxes. This delay time allows the people with the big money to get repositioned for the inevitable downfall so they can maximize profit and preserve their wealth as much as possible when it happens.

Wed, 08/11/2010 - 15:13 | 516063 DosZap
DosZap's picture

"It's like slaughtering millions of pigs to raise the price of pork."

Like we believe that was why.......it was for control, have to keep folks in the Bread lines, couldn't help the Farmers to make a small  profit to grow, and raise ALL the food/livestock they could.....

A Hungry slave is an obedient slave.............until the wrong folks decide they do not want to stand in line.......and take maters into their own hands.

I cannot fathom the ruthlessness and violence sone of the people in this country will wreak on the sheep.....compared to the last Depression, when people had a moral, and values based compass.

 

Wed, 08/11/2010 - 11:44 | 515323 HelluvaEngineer
HelluvaEngineer's picture

Keynesian FAIL

Wed, 08/11/2010 - 11:53 | 515324 hedgeless_horseman
hedgeless_horseman's picture

...and the band played on.

http://www.youtube.com/watch?v=-ALRLZQf42s

People moving out, people moving in
Why? Because of the color of their skin
Run, run, run but you just can't hide

An eye for an eye
A tooth for a tooth
Vote for me and I'll set you free

Rap on, rap on brother
Rap on

Well, the only person talking about love today is the preacher
And it seems nobody gets just all the learning but the teacher

Segregation, determination, demonstration, integration
Aggravation, humiliation, devastation of our nation

Ball of confusion
That's what the world is today
Hey, hey

Ball of confusion
That's what the world is today
Hey, hey

The sale of pills at an all time high
Who put the filling in pie in the sky?
The city's a flame in the summer time

And the beat goes on
And the beat goes on
And the beat goes on
And the beat goes on

Economics, reaganomics, birth control, the status quo
Shooting rockets to the moon, kids growing up too soon
The Politicians say and the band plays on

So, round and around and around we go
Where the world's heading
Nobody knows

Ball of confusion
That's what the world is today
Hey hey

Ball of confusion
That's what the world is today
Hey hey, hey hey

Fear in the air, tension everywhere
Unemployment rising fast
Rockets new record's a gas

And the band played on
And the band played on
And the band played on
And the band played

Eve of destruction, tax deduction, city inspectors, bill collectors
Solid gold in demand, population out of hand, suicide

Too many bills, everyone movin' to the hills
People all over the world are dying in the war

And the band played on
And the band played on
And the band played on
And the band played

Ball of confusion
That's what the world is today
Hey hey

 

Wed, 08/11/2010 - 11:53 | 515372 schoolsout
schoolsout's picture

Widespread Panic has a good tune "Don't tell the band"

 

If I wasn't on work comp, I'd try to find it.

 

 

Wed, 08/11/2010 - 12:25 | 515506 Astute Investor
Astute Investor's picture

+1 for Love and Rockets

Wed, 08/11/2010 - 12:26 | 515514 aheady
aheady's picture

I was thinking Tina Turner.

Wed, 08/11/2010 - 22:56 | 517098 StychoKiller
StychoKiller's picture

That should be:  "...The Politicians say moe taxes will solve everthang!..."

Wed, 08/11/2010 - 11:44 | 515325 redarrow
redarrow's picture

A mouse fart against a hurricane. Ha.... the dems are scared shit of the beating they are gonna take at the polls. Republicans are just as worse ... in this stupid political system WTF is the alternative. Talk about financial, political and representative bankruptcy.

Wed, 08/11/2010 - 12:18 | 515479 NotApplicable
NotApplicable's picture

The alternative is to stop supporting the beast as best as you can, denying it the facade of legitimacy it requires to survive.

Wed, 08/11/2010 - 11:45 | 515331 Rider
Rider's picture

Punks are giving away my tax dollars, freaking great!

Wed, 08/11/2010 - 12:00 | 515399 Roy Bush
Roy Bush's picture

They aren't giving away your tax dollars....I'm so sick of people failing to grasp the obvious!  They are printing up new money...this is the crime.

Wed, 08/11/2010 - 12:14 | 515459 MsCreant
MsCreant's picture

Thus diluting the buying power of his tax dollars before they hand them out to others. Oh, but on an accounting book somewhere, the punks make him owe interest on it because it had to be "borrowed" to be given away.

Wed, 08/11/2010 - 12:22 | 515490 NotApplicable
NotApplicable's picture

The point is, that it is dollar holders everywhere who are being robbed, not merely US tax payers.

Wed, 08/11/2010 - 12:49 | 515612 MsCreant
MsCreant's picture

I agree but the crime to the tax payer is that we will owe money (interest) on the money they printed and we back the debt (we owe when the borrower defaults). I feel like a pit bull about this and I will not let it go. Yes we all get screwed because dollars buy less, but tax payers are on the hook for those dollars that went out. I will not toss up my hands and say "Oh Gee, everyone is getting hurt" and move on. Tax payers will take it harder and harder until this thing collapses. 

Wed, 08/11/2010 - 14:30 | 515934 Cognitive Dissonance
Cognitive Dissonance's picture

Don't let go of that bone MsCreant.

On the bright side, it seems that on a daily basis there are less and less "taxpayers" to be burdened.

On the dark side, those who manage to remain gainfully employed will simply shoulder more of the burden. I gather that means you and I MsCreant.

Wed, 08/11/2010 - 15:22 | 516093 DosZap
DosZap's picture

Cog,

Sorry...............not just those with a job, those taxes, and increases are hitting everyone that still has savings, and OWN their homes.

Just be happy it's so bad, they stopped (for the moment) the Cap & Trade crap.

Al Gore stated on Drudge, that the Government has failed us ALL.

What a goofy bstd he is............Multi Millionaire, off of defective atmosheric  science, and lies,blatantly found out.AND still spouts his  sh*%,,,,,,,,

Has ONE( of several) homes, in TN, that is like 12k sq ft, and the thing is lit up like Macy's at Xmas, every friggin night................while he's private jetting globally telling us ALL we must cut back...........ride bikes, or walk.

Frigging Hypocrites......

Thu, 08/12/2010 - 01:42 | 517230 MsCreant
MsCreant's picture

You and I sir, for the moment. Tho DosZap makes an excellent point for us to ponder. 

Wed, 08/11/2010 - 11:45 | 515333 Hondo
Hondo's picture

Completely insane!!!  This government (all parts of it) need to be replace NOW!  They have compeltely runied this country.....there will soon be little left to save or at a minimum it will take generations to correct the destruction they have put upon this nation.

Wed, 08/11/2010 - 11:45 | 515334 plocequ1
plocequ1's picture

I am loving every minute of this. I hope the HFT machine does not spoil the fun. Please Tyler, Ressaure me that nothing can stop this freefall.

Wed, 08/11/2010 - 11:46 | 515336 RingToneDeaf
RingToneDeaf's picture

Wheee! Free Money!!!!

Just a bit of Bread for the Circuses.

This Obama is a Genius!!!!

Wed, 08/11/2010 - 11:46 | 515337 jbc77
jbc77's picture

Looks like that headline has ZERO effect on the market. Goverment punk ass suckers....

Wed, 08/11/2010 - 11:48 | 515341 lance_manion
lance_manion's picture

Bread and circuses, bitchez.

Wed, 08/11/2010 - 11:49 | 515344 Shameful
Shameful's picture

Wow.  Can't wait for details.  But really lets juice this pig.  Just let everyone up to the discount window with whatever garbage asset they have with fairytale valuations.  You will see demand SKYROCKET.  That should make the agg demand guys like Krugman go into a euphoric state.

Wed, 08/11/2010 - 11:51 | 515350 RSDallas
RSDallas's picture

I can't find this anywhere on the NET.

Wed, 08/11/2010 - 12:07 | 515424 kridkrid
Wed, 08/11/2010 - 12:22 | 515491 dkny
dkny's picture

(zero percent interest, non-recourse, subordinate loan)

Subordinate means that the bank still has first dibs on the property, right?

And the non-recourse must be a perk :)

Wed, 08/11/2010 - 12:46 | 515594 John Self
John Self's picture

So a Hawaiian vacation before the jingle mail.  Quite an improvement.

Wed, 08/11/2010 - 11:50 | 515351 economessed
economessed's picture

My house payment isn't as distressing as my property taxes -- when is HUD going to toss me a fist-full-o-bucks to lighten the load on my ridiculously high property taxes?

I'm in DISTRESS!  Send me money NOW!

Wed, 08/11/2010 - 11:50 | 515353 Misean
Misean's picture

Do those of us who took a responsible approach to property ownership and debt at least get a reach around?

Wed, 08/11/2010 - 12:07 | 515429 Geoff-UK
Geoff-UK's picture

No, in fact--prepare for ball-ectomy when the ruling class  needs you to step up for TARP 2.0.

Wed, 08/11/2010 - 11:52 | 515357 haskelslocal
haskelslocal's picture

Christ is coming! Down with Usury! Turn some tables and find ye some coinage...

Wed, 08/11/2010 - 11:51 | 515361 aaronb17
aaronb17's picture

HA! $3 billion in zero-interest loans?  Are you kidding?  Wow, please, Obama, don't go overboard to help the unemployed or anything.  

News flash: the big banks have been getting hundreds of billions of dollars in revolving zero-interest loans for the past two-plus years.  Who cares about a puny $3 billion to the unemployed?

Wed, 08/11/2010 - 12:09 | 515434 Dragline
Dragline's picture

Amazing, you're the first person here who caught on that $3 billion is chump change in the greater scheme of things.

Innumeracy is a terrible disease.

Wed, 08/11/2010 - 12:30 | 515530 Marginal Futility
Marginal Futility's picture

There's the insanity right there - calling $3 billion "chump change".  Hell, it's only the annual federal tax revenue of an entire STATE (see ND or VT).

Wed, 08/11/2010 - 12:17 | 515466 Quantum Future
Quantum Future's picture

$1 Billion from HUD is 20,000 unemployed homeowners @$50K per. That's not even .5 % of the unemployed.

Don't get me wrong, I am against any freebies on my tax dime, but this is whole thing is a political sham for sure that really is a backdoor bailout for the banks.

QF

Wed, 08/11/2010 - 11:55 | 515380 Waterman Jim
Waterman Jim's picture

just another way to keep the banks from having to divulge their liabilities

its all about holding up/increasing demand and asset values.

 

Wed, 08/11/2010 - 11:56 | 515383 Bruce
Bruce's picture

Housing is not the answer.  Jobs are.
This is an obvious electioneering ploy,
and will do nothing to prevent housing
from reverting to the mean.  I call it
for what it is, a bribe.

"Politicians are like diapers:
They should be changed frequently,
and for the same reasons"
- Robin Williams as Tom Dobbs in
"Man of the Year"

“The American Republic will endure until
the day Congress discovers that it can bribe
the public with the public's money.”
- Alexis de Tocqueville

Wed, 08/11/2010 - 11:56 | 515386 dcb
dcb's picture

All it is is another back door bank bailout

Wed, 08/11/2010 - 11:57 | 515389 element115
element115's picture

So, if you are unemployed, and own a home, you get 50k interest free, for two years?

Nice. I am sure that 50k will be good motivation for those without a job to get out there and find work.

If I had 50k I would go buy a new car, an iPad, an iPhone 4, a bigger flatscreen TV, and a new Coach handbag for the misses.

Wed, 08/11/2010 - 13:09 | 515678 tmosley
tmosley's picture

Really?  I'd buy 40 oz of gold.

Or 3000 oz of silver.

Or solar setup.

Wed, 08/11/2010 - 13:33 | 515767 AVP
AVP's picture

That's exactly why responsible people won't see a dime.

The distressed will be partying tonight! This fiat will be shot-up, smoked-up and snorted-up in

no time. Sickening!

Wed, 08/11/2010 - 11:57 | 515390 Roy Bush
Roy Bush's picture

A "loan"? Sounds like it is a gift if the people receiving these "loans" don't have a job and no means to repay...Am I missing something?

Wed, 08/11/2010 - 12:04 | 515417 Shameful
Shameful's picture

Giving away public money to voters if a time honored tradition stretching back to at least Rome.  The old tricks are the best tricks.

Wed, 08/11/2010 - 11:58 | 515391 Lux Fiat
Lux Fiat's picture

Based on the details that I have found so far, this is akin to treating an amputation wound with a bandaid.  They just need to cauterize the dang thing.

From, ahem, http://www.cnbc.com/id/38658978

The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year.

They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.

Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.

Wed, 08/11/2010 - 11:59 | 515393 jkruffin
jkruffin's picture

HUD has always offered these type loans, its nothing new.  The catch 22 is this.  They put a lien on your house/property and it has to be paid back in full if either of the following happen:

1.  Mortgage loan is paid off

2.  You sell the house

How does this help anyone?  It is another form of kick the can down the road.  It will get you out of foreclosure, YES, but its more debt added.  If you are already upside down on your home value, this does nothing but make the problem even worse. If you already have 2nd or 3rd liens on your property, you are toast if you make this deal with HUD.

Another example, if you sell your home, say its worth 150k and you still owe 130k, and you borrowed 30k from HUD, you lost your house, all the equity you had, and you still owed HUD a lump sum payment.  And guess what, they will garnish your wages to get their money because it is a federal debt like taxes, that they will collect no matter if they put you under.  I just used easy numbers to see what it looks like.  How bad do you think it will look for a home that was worth 500k on a mortgage, that is now worth 250k or less.

This administration just keeps digging bigger and bigger holes of debt and ignorance. And these idiots went to college??  Paleeezzz....

Wed, 08/11/2010 - 12:02 | 515409 doomandbloom
doomandbloom's picture

many seem to have PhD's too...

Thu, 08/12/2010 - 00:20 | 517170 dkny
dkny's picture

Doesn't a non-recourse loan mean that the only thing they have a claim on is the house? So, in this case, there is no risk of any garnishing?

Wed, 08/11/2010 - 11:59 | 515397 Catullus
Catullus's picture

So If I build my little T-account of the fed balance sheet: the mortgages on the Fed's book are producing a cash revenue stream. But what is cash other than the fed recieving their own liabilities back. So in the austrian perspective, people pay their mortgages owned by the fed was a deflationary event in regards to money leaving the supply of exchangable of stock. "reinvesting" by the fed is an attempt to send that money back out into the banks.

Here's the rub, if you can get people to refi the mortgages, the fed ends up with additional cash. They will in turn push out more money to purchase treasuries from the banks. The refi method sends more money to the banks which they will use to purchase more Keynesian stimulus bonds. The fed is actually preventing deflation by sending the money back out. And we get the insano world of refi at a lower rate is higher octane inflationary event.

Feel free to say that's idiotic.

Wed, 08/11/2010 - 12:27 | 515513 NotApplicable
NotApplicable's picture

That's idiotic!

Of course, that's exactly why they are doing it.

The Fed's one-trick pony (monetary debasement) is about to meet infinity.

Just like Fekete predicted.

Wed, 08/11/2010 - 12:00 | 515401 doomandbloom
doomandbloom's picture

trying to stop that crack in the dam..using post id's eh?

Wed, 08/11/2010 - 12:02 | 515407 ColonelCooper
ColonelCooper's picture

Typical.  Since I live in a state with below average unemployment, have a job and pay my bills, I can continue to fund everyone else.

Time to buy a house in Illinois, then have a not to concealed affair with my bosses wife, and stop paying my mortgage.  The worst that can happen is I get a stray shot of ass.

Wed, 08/11/2010 - 12:22 | 515494 Augustus
Augustus's picture

Use care with the plan.  You may need a stray shot of some very strong antibiotic.

Wed, 08/11/2010 - 12:39 | 515564 ColonelCooper
ColonelCooper's picture

My guess is that with the woman in question you would be more in need of a Swiffer to remove the cobwebs than a quick trip to a discreet doctor.

Wed, 08/11/2010 - 12:05 | 515411 Racer
Racer's picture

Sub-prime lending at its most ridiculous...

Lend to people who have NO job, are underwater in their mortage, do NOT get any return for the risk (insanity)

Have not a chocolate teapots chance in a volcano of ever getting the money back at all and while you wait don't get a penny while you wait for them to default!

Insanity beyond belief and a recipe for people not to care AT ALL about doing ANYTHING, and not even bothering to try to look for a job either... well why bother? You can get free money, don't need to pay anything for a house to live in, so why work?

 

Wed, 08/11/2010 - 12:02 | 515412 williambanzai7
williambanzai7's picture

I'm distressed. Where do I sign up!

Wed, 08/11/2010 - 12:07 | 515422 Racer
Racer's picture

A plan to get those in deep debt who can't afford to pay even deeper in debt... what plan is that?

......A plan to entrap into lifelong slavery

Wed, 08/11/2010 - 12:09 | 515431 Attitude_Check
Attitude_Check's picture

So if I am UNEMPLOYED I get a 0% interest loan.  Now how am I going to make principle payments?  Anyone want to guess how quickly these loans go poof?  I predict 1 month on average!

Wed, 08/11/2010 - 12:09 | 515433 jefe95
jefe95's picture

I need a swimming pool.  Very hot here in Texas.

 

0% 50k should do the trick.  Where's the online app?

Wed, 08/11/2010 - 12:12 | 515448 Me XMan
Me XMan's picture

Hot here in Vegas too. I need a huge pool for top-less parties.

Wed, 08/11/2010 - 12:10 | 515438 Segestan
Segestan's picture

This is a good idea... these are taxed properties, that would otherwise fall to the banksters.

 

 You people on ZH need to get some and grow up.

Wed, 08/11/2010 - 12:19 | 515472 bob_dabolina
bob_dabolina's picture

So when are you sending me a check to help pay my mortgage?

Put your money where your mouth is...don't put my money where your mouth is.

Wed, 08/11/2010 - 12:21 | 515489 Overpowered By Funk
Overpowered By Funk's picture

You say that like it's a bad thing.

Wed, 08/11/2010 - 12:40 | 515562 NotApplicable
NotApplicable's picture

So instead they are going to fall into the hands of Freddie/Fannie/HUD when the default comes, along with an inescapable federal debt? And in the meantime, where are all of those loan proceeds going? The banksters!

Oh yeah, this is a good idea alright.

As long as the housing markets are artificially propped up, they can never return to a functional level, as the debts (representing prices) are too high relative to valuations. Markets clear only when prices turn to normal. Which in the case of housing, is all a function of foreclosures clearing out the excess debt burden which is unsustainable (absent massive inflation/reflation, anyway).

When you say we need to "get some," I have to assume you're referring to blinders?

Wed, 08/11/2010 - 12:11 | 515444 Geoff-UK
Geoff-UK's picture

The ruling class will get continue to get theirs--and the lower class will continue to get handouts.

You're middle class?  Read up on feudalism, cuz there ain't no middle class in feudalism--and it's coming back in a big, big way.

Wed, 08/11/2010 - 12:18 | 515469 Shameful
Shameful's picture

Sure there is.  But it's tiny and mobile.  A middle class did exist under feudalism.  They existed as the merchants and highly skilled craftsman.  With the uneducated public there weren't enough of them around, so they traveled from place to place selling their skills.  Oddly enough I can see the same happening today with high skilled labor.

The middle class as we know it will die, but I do expect some vestige of it to survive in some fashion.  Neo-Feudalism, everything old is new again.

Wed, 08/11/2010 - 13:55 | 515836 ozziindaus
ozziindaus's picture

Could well be. The 9/10 shadow housing inventory may never be intended for sale but left in a pool of perpetual rental properties.

Wed, 08/11/2010 - 12:16 | 515467 surfsup
Wed, 08/11/2010 - 12:18 | 515474 koaj
koaj's picture

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_...

 

i called HUD about this and they hung up on me after 30 seconds. sort of like my congressman

Wed, 08/11/2010 - 12:19 | 515476 koaj
koaj's picture

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_...

 

i called HUD about this and they hung up on me after 30 seconds. sort of like my congressman

Wed, 08/11/2010 - 12:19 | 515478 Augustus
Augustus's picture

Damn.  Damn.  Damn.  Damn.

The dipsquats are getting unemployment, food stamps, 2/3 of their health insurance paid, everything for the children under S-Chip, and now a handout that will never be repaid so they can live in a home which they will not be able to maintain.  It has to be near the end of the line.

Here folks.  Spend all you want.  We'll just print some more.

Wed, 08/11/2010 - 12:18 | 515480 JR
JR's picture

Mortgages and housing: nationalized--all through Fred, Fannie and HUD. Healthcare: nationalized.  General Motors: nationalized.

Does this mean that the American taxpayers now hold the notes on cars, houses, and health care?  No. It means the bankers hold the notes on America.

You can’t have Keynesian philosophy without a printing press.

America’s banking cartel monetary system--Warburg’s “Federal Reserve” Ponzi scam--is a false monetary system. At the end of the Bernanke Ponzi, at the crack-up collapse, the economy will seek its own level. And America’s false medium of exchange—the plundered paper dollar-- will be useful no more.

A Keynesian economy cannot survive, even temporarily, unless it has a printing press. And that printing press must be beyond restriction by the citizenry and its use must be in secret.  Otherwise, there is no means (without guns) for a socialist economy to transfer the massive wealth of its producing citizenry into a ruling class redistribution scheme, there is no means for unlimited spending that daily devalues yesterday’s dollar given to and held by the producer as a medium of exchange for his property and services.

For without a government enforced printing press who would exchange real worth for paper?

Said Nate on Nathan’s Economic Edge this morning: “The FOMC announcement yesterday included the Fed’s latest scheme/scam/game to fool the public.  Uh, let’ see, we’ll take the principal payments from Freddie and Fannie mortgages (robbing Peter) held by the government (and not on our books), to purchase long term government bonds (pay Paul) in an effort to continue to suppress interest rates which will help the banks and once again do nothing to help consumers who are saturated with debt while living in homes that are sinking in a sea of falling liquidity…

“…In other words, they are printing money but conning the globe in hopes that they don’t destroy confidence.  That’s what con men do in order to keep their game alive longer.  And this con is going to cost about another $340 billion over the next year—effectively to buy down interest rates again.  And once again this is a hidden INTEREST EXPENSE.  The real interest on the national debt is much higher than admitted and takes up a huge chink of (if not all of) our tax collections.  This is a circle from which there is no escape and no end—it will have to continue until the game collapses, that’s the way all Ponzi schemes and exponential growth works.”

http://economicedge.blogspot.com

Wed, 08/11/2010 - 12:25 | 515504 Augustus
Augustus's picture

The reason they were unable to spot Madoff is that he was doing what they are doing.  It did not appear to be unusual at all.

Wed, 08/11/2010 - 12:19 | 515482 Overpowered By Funk
Overpowered By Funk's picture

Barack Obama. Making responsible bill paying, debt reducing, prudent savers look like the absolute chump suckers they are. Just don't forget to pay your taxes.

Wed, 08/11/2010 - 13:11 | 515690 JR
JR's picture


Barack and  Nancy, God bless them, remind me of that Charlie Rangel joke where he got a call from his banker telling him his account was overdrawn. Said Charlie:

“Whaddya mean, I’m overdrawn?  I still have my checkbook!”

And all this “movin on up" on free interest loans brings to mind The Jeffersons’ theme song:

“Well we're movin on up,
To the east side.
To a deluxe apartment in the sky...
We finally got a piece of the pie.”

Only the way Moochelle Obama put it in 2008, it’s not a piece of a bigger GDP pie she wants to help The Jeffersons bake, it’s your pie she wants to take. Said Michelle:

“The truth is, in order to get things like universal health care and a revamped education system, then someone is going to have to give up a piece of their pie so that someone else can have more.”

Michelle is now enjoying her piece of the pie in Spain, along with her forty friends festing in their 60 de luxious vacation rooms.

 

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