California Receives $700 Million in Federal Housing Aid

[JC]

March 8, 2010, 10:27 AM ET California Receives $700 Million in Federal Housing AidCalifornia will receive $700 million and Florida will take $400 million in federal aid to begin designing programs to ease foreclosures, under the Obama adminstration’s latest effort to ease the housing crisis.

President Obama announced the program, which would aid state housing finance agencies in the “hardest-hit” states, during a swing through Las Vegas last month. On Friday, the administration announced the funding formulas and totals for the five states that are set to receive aid. Michigan will receive $155 million, Arizona gets $125 million and Nevada receives $103 million.

Funding is awarded based on a formula based on unemployment, price declines and the volume of delinquent loans. California had the second worst price decline, the third-worst unemployment rate, and the greatest volume of delinquent loans at the end of 2009–enough to grab almost half of the $1.5 billion that the Obama administration agreed to give to the five states. While Nevada, which has had the sharpest home-price declines and has a 13% unemployment rate, walks away with the smallest cash grant, the state actually takes the most money per delinquent borrower. (Read more about the funding allocation formula here).

It’s now up to the states to decide how to use the money, and they’ll have to present plans to Treasury next month. Those plans could include new efforts to modify loans, including principal write-downs for borrowers who owe far more than their homes are worth, initiatives to address second-lien mortgages, and efforts to speed up short sales, where homes are sold for less than the amount owed.

[CA renter]

With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.

[CA renter]

With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.

[CA renter]

With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.

[CA renter]

With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.

[CA renter]

With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.

[NotCranky]

[quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.

[NotCranky]

[quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.

[NotCranky]

[quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.

[NotCranky]

[quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.

[NotCranky]

[quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.

[CA renter]

[quote=Russell][quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.[/quote]

We’ll have to agree to disagree on that one. I know a number of people who are very decent, law-abiding types who are growing angrier and angrier by the day as the govt bails out all the reckless idiots at the expense of those who try to do things the right way.

If they begin reducing principal balances, for instance, expect nearly every mortgage debtor to stop paying their mortgage so they can demand a cramdown. It’s what the govt is conditioning people to do, and if playing by the rules gets you in trouble while the scammers are making out like bandits, expect everyone to become bandits. It’s just human nature.

[CA renter]

[quote=Russell][quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.[/quote]

We’ll have to agree to disagree on that one. I know a number of people who are very decent, law-abiding types who are growing angrier and angrier by the day as the govt bails out all the reckless idiots at the expense of those who try to do things the right way.

If they begin reducing principal balances, for instance, expect nearly every mortgage debtor to stop paying their mortgage so they can demand a cramdown. It’s what the govt is conditioning people to do, and if playing by the rules gets you in trouble while the scammers are making out like bandits, expect everyone to become bandits. It’s just human nature.

[CA renter]

[quote=Russell][quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.[/quote]

We’ll have to agree to disagree on that one. I know a number of people who are very decent, law-abiding types who are growing angrier and angrier by the day as the govt bails out all the reckless idiots at the expense of those who try to do things the right way.

If they begin reducing principal balances, for instance, expect nearly every mortgage debtor to stop paying their mortgage so they can demand a cramdown. It’s what the govt is conditioning people to do, and if playing by the rules gets you in trouble while the scammers are making out like bandits, expect everyone to become bandits. It’s just human nature.

[CA renter]

[quote=Russell][quote=CA renter]With every one of these new programs, they are sending a clear message:

Those who are prudent will be forced to pay for the least responsible people in our country. If you make a huge financial mistake (like gambling on housing prices), you will be bailed out as long as everyone else makes the same stupid mistake.

Every time they discuss principal reductions (at taxpayers’ expense), I can’t help but think we should all go out and buy $1MM homes, then demand that they reduce our balances to whatever we decide we should pay.

They are treading on thin ice here, and I wonder if they are thinking about the probable consequences of these actions.[/quote]

There is no thin ice. Who is going to run out in the streets exposing people who are working the sytem, blowing the whistle on their neighbors,clients and the rest? What is going to happen if they do? Nothing good, and maybe they get themselves hurt one way or another. Nothing is going to happen. People who wouldn’t cheat before won’t cheat anymore now. Some are going to collect some trophies by what you or I consider cheating and life will go on.[/quote]

We’ll have to agree to disagree on that one. I know a number of people who are very decent, law-abiding types who are growing angrier and angrier by the day as the govt bails out all the reckless idiots at the expense of those who try to do things the right way.

If they begin reducing principal balances, for instance, expect nearly every mortgage debtor to stop paying their mortgage so they can demand a cramdown. It’s what the govt is conditioning people to do, and if playing by the rules gets you in trouble while the scammers are making out like bandits, expect everyone to become bandits. It’s just human nature.

[Author]

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