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
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!
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,