Can't afford your house? Here is an easy fix, let taxpayers do it.

DaemonSeid · #1 05-12-2010, 08:43 AM

NEW YORK (CNNMoney.com) -- Unemployed? Owe more on your mortgage than your home is worth? Your state might one day pay your mortgage.

Giving people free money to cover their home loans is just one of the radical ways that four states -- Florida, Michigan, California and Arizona -- plan to use $1.4 billion the Obama administration is sending their way to help the unemployed and underwater avoid foreclosure.

Many consumer advocates have said the government should help cover the payments of these troubled homeowners, lest the mortgage crisis continue spinning out of control and dragging down everyone's property values. But other housing experts warn that paying off loans creates a moral hazard and could actually dissuade people from looking for work.

Innovative programs, however, are exactly what the administration was hoping for when it unveiled the Hardest Hit Fund initiative in February. Officials are looking to help the unemployed and underwater, who are now at the heart of the crisis. Despite the administration's best efforts to stabilize the market, home prices are still sliding and foreclosure filings are at record highs.

Link

AnotherKD · #2 05-12-2010, 08:48 AM

Damn, where is all of this money coming from???

And how can I get in on that? Oh, wait, I have a stable job and pay my mortgage on time every month. Damn you, responsibility.

DaemonSeid · #3 05-12-2010, 08:49 AM

^^^ aren't you noticing some extra lint balls in your pockets too??

AnotherKD · #4 05-12-2010, 09:18 AM

I wouldn't know, they're turned inside-out.

DaemonSeid · #5 05-12-2010, 09:20 AM

Haaa!!!!!

DrPhil · #6 05-12-2010, 09:34 AM

Government safety nets are what we have expected from the government for generations. And "we" means everyone and includes services like wealthfare (for the well-off) and welfare. But, finding solutions and safety nets is never fool proof. Perhaps there is a way to extend the mortgage credit with proof the person is looking for employment or even doing odd jobs to make money.*** Similar to how unemployment checks work. TECHNICALLY, people are not supposed to receive unemployment if they aren't seeking a job. Of course, it doesn't work that way most of the time and the poor and uneducated aren't always the ones stiffing the system.

DaemonSeid · #7 05-12-2010, 09:37 AM

Hence...'bail out'.

cheerfulgreek · #8 05-12-2010, 09:39 AM

I'm moving to another country.

AOII Angel · #9 05-12-2010, 10:05 AM

Okay...I've gotta plan! When I get to Phoenix, I'll divorce my husband, make him buy the house, and we'll make the state of AZ buy it for us! He's unemployed! Genius! Who thinks of this stuff?

AZPrez · #10 05-12-2010, 10:08 AM

Quote:

Originally Posted by cheerfulgreek

I'm moving to another country.

Won't work. I live in another country and I still have to file U.S. taxes.

cheerfulgreek · #11 05-12-2010, 10:14 AM

Quote:

Originally Posted by AZPrez

Won't work. I live in another country and I still have to file U.S. taxes.

I wasn't serious, I was posting out of anger. But I'm curious, Why?

AOII Angel · #12 05-12-2010, 10:18 AM

Quote:

Originally Posted by cheerfulgreek

I wasn't serious, I was posting out of anger. But I'm curious, Why?

Because he's a US citizen. You don't remember Wesley Snipes getting in trouble for tax evasion for not paying taxes while working on films in Europe?

cheerfulgreek · #13 05-12-2010, 10:22 AM

Quote:

Originally Posted by AOII Angel

Because he's a US citizen. You don't remember Wesley Snipes getting in trouble for tax evasion for not paying taxes while working on films in Europe?

I figured that. I would just keep filing U.S. taxes until I was a citizen of that particular country.

Obama sure is handing out a ton of freebies. He definitely won't be getting my vote again.

AZPrez · #14 05-12-2010, 10:32 AM

AOII Angel is correct. U.S. citizens need to file for U.S. taxes regardless of where they live. The U.S. is one of the few countries that requires this (though I hear the U.K. is also considering this now). Tax treaty agreements take much of the bite out of taxes payable, but it's still a hassle to file for U.S. taxes in addition to the taxes of the foreign country in which one presently resides.

(Oh, and I assumed you weren't serious, cheerfulgreek, when I replied.

)

AnotherKD · #15 05-12-2010, 10:39 AM

[QUOTE=cheerfulgreek;1927804]
Obama sure is handing out a ton of freebies. QUOTE]

But some people don't realize that this money has to come from somewhere, and as we're pretty much past our credit limit with other countries... it's coming from my wallet. There's a car that parks somewhat near mine at work that has a bumper sticker saying "Honk if I pay your mortgage". I thought it was funny, and now I just think it's sad.

What about those people who are on the brink of home ownership? Those that will have to pay more taxes (as the taxes used for programs like these can't all come from only the people making over $200k/year) so their budgets are stretched and also that the place they were looking at to buy now has even higher property taxes that they can't afford. This is starting to sound like the gentrification thread now... pardon my ranting...