Obama offers mortgage relief on trip

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					                                                                                                                                          Tuesday, October 25, 2011 - BUTLER EAGLE 7

Obama offers mortgage relief on trip
Housing crisis still                 epicenter of foreclosures and
                                     joblessness. “Where they won’t
                                                                            on housing have not worked as
                                                                            well as expected.
                                                                                                                  most of his proposals.
                                                                                                                    While Obama has proposed
                                                                                                                                                         the revamped refinancing pro-
                                                                                                                                                         gram, the Federal Housing
creating problems                    act, I will.”
                                       Making a case for his policies
                                                                               His jobs bill struggling in Con-
                                                                            gress, Obama tried a new catch-
                                                                                                                  prodding the economy with pay-
                                                                                                                  roll tax cuts and increased
                                                                                                                                                         Finance Agency estimated an
                                                                                                                                                         additional 1 million people
                                     and a new effort to circumvent         phrase — “We can’t wait” — to         spending on public works and           would qualify. Moody’s Analytics
By Associated Press                  roadblocks put up by Republican        highlight his administrative ini-     aid to states, he has yet to offer     say the figure could be as high
   LAS VEGAS — President             lawmakers, Obama also laid out a       tiatives and to shift blame to        a wholesale overhaul of the            as 1.6 million.
Barack Obama offered mortgage        theme for his re-election, saying      congressional Republicans for         nation’s housing programs. Econ-         Under      Obama’s    proposal,
relief on Monday to hundreds of      that there’s “no excuse for all the    lack of action to boost employ-       omists point to the burst housing      homeowners who are still current
thousands of Americans, his lat-     games and the gridlock that we’ve      ment and stimulate an economic        bubble as the main culprit             on their mortgages would be able
est attempt to ease the economic     been seeing in Washington.             recovery.                             behind the 2008 financial crisis.      to refinance no matter how much
and political fallout of a housing     “People out here don’t have a           Later in the week, Obama           Meanwhile, the combination of          their home value has dropped
crisis that has bedeviled him as     lot of time or a lot of patience for   plans to announce measures to         unemployment, depressed wages          below what they still owe.
he seeks a second term.              some of that nonsense that’s been      make it easier for college gradu-     and mortgages that exceed house          “Now, over the past two years,
   “I’m here to say that we can’t    going on in Washington,” he said.      ates to pay back federal loans.       values has continued to put a          we’ve already taken some steps
wait for an increasingly dysfunc-      The new rules for federally          Such executive action allows          strain on the economy.                 to help folks refinance their
tional Congress to do its job,”      guaranteed loans represent a           Obama to address economic ills          While the White House tried          mortgages,” Obama said, listing a
the president declared outside a     recognition that measures the          and other domestic challenges         to avoid predicting how many           series of measures. “But we can
family home in Las Vegas, the        administration has taken so far        despite Republican opposition to      homeowners would benefit from          do more.”

Low mortgage                                                                                                                                              RE-ELECT
rates elude many                                                                                                                                            DAVE
Borrowers can’t
refinance loans
                               under no obligation to refi-
                               nance a mortgage they
                                  A growing number of                                                                                                      BUTLER TWP.
By Associated Press            these people are missing
                               mortgage payments and
   WASHINGTON             —                                                                                                                         paid for by the candidate
                               falling into foreclosure.                                                                      1148600
Today’s record-low mort-
                               And the higher rates
gage rates are out of reach
                               they’re locked into limit
for millions of U.S. home-
                               how much they can con-
owners who would benefit
                               tribute to a weak economy.
from them most.
   One in four homeowners
                               If they were able to refi-     Dan and Maggie Micoff stand in front of their house in                              It’s not too late to
                                                                                                                                 LIME & FERTILIZE
                               nance at today’s rates, it     Marine City, Mich. The Micoffs bought their two-bedroom
with a mortgage — 11 mil-
                               could boost consumer           home in 2003 for $119,000 with a 6 percent loan. Eight
lion people — owe more
                               spending by tens of bil-       years later, they owe more than their home is worth and
than their home is worth.
                               lions of dollars, economists   can’t qualify for a lower interest rate.                                                your lawn!
                                                                                                                                        Hoopes Fertilizer
These “underwater” bor-                                                                                                                                                           ®
                               say.                                                                       ASSOCIATED PRESS
rowers have virtually no
shot at refinancing.              Underwater homeowners
   Their plight is a drag on   are paying an average 30-      their mortgage on time and      the Micoffs, both 58, could
the housing market and         year fixed mortgage rate of    in full and losing, or walk-    shave at least $120 from
the broader economy.           5.7 percent, according to      ing away from, their home.      their monthly bill.
   The Obama administra-       an analysis of mortgage          Underwater borrowers            “The banks won’t work
tion is hoping at least 1      data by CoreLogic and The      are the “most desperate         with us,” Maggie Micoff
                               Associated Press. That                                                                                        OPEN: Mon.-Fri.•8 - 5 Sat.•8 - 2          1149598
million of these borrowers                                    population in the country       said. “We helped bail them
will take advantage of its     compares with today’s          today,”      says     Barry     out, and now we can’t even
refinancing program under      average rate of 4.11 per-      Bosworth, an economist at       get a personal loan to get
more        lenient    rules   cent on a 30-year fixed        the Brookings Institution.      by. We could rent some-
unveiled Monday. Home-         mortgage. For a homeown-         Dan and Maggie Micoff         thing for a few hundred
                                                                                                                                                  L AWN & G ARDEN
owners who are current on      er with a $250,000 mort-       bought a two-bedroom            dollars cheaper.”                         101 S. Monroe Street • Butler • 724-287-3745
their payments will be eli-    gage, the lower rate would     home in the Detroit suburb
gible to refinance no mat-     save more than $200 a          of Marine City in 2003.
ter how much their home’s      month.                         They paid $119,000. Eight
value has dropped.                For many Americans, a       years later, they’re under-
   Still, it’s unclear how     few hundred dollars each       water with a 6 percent
many borrowers will bene-      month would mean the dif-      loan.
fit. Lenders will remain       ference between paying           If they could refinance,


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