Moving Expenses, Too?

I feared this was the way Fannie and Freddie would go. It didn't take long. How long before the American taxpayer becomes the largest landlord in the US? The issue involves individuals who are being evicted from apartments, not because they missed the rent, but because the owner was foreclosed upon.

So the Feds take ownership and tell the tenant you needn't move. But it doesn't end there. If they opt to move out, we get to pay for their moving expenses, too. Huh? Something tells me this is a program, headed for disaster and I bet we haven't seen anything, yet.

Fannie admits doing this makes it more difficult to sell the properties. But so what? It's not their money it'll require to pay for administration of this program. If people do stop paying rent, do you think Fannie would actually ever evict them? You know eventually a judge will say they can't.

File this one away with the Examiner piece on our having to provide voice mail for the homeless. It's welcome to the promised land. No phone, no home, no job, no worries, dude! Uncle Sam is here! I can only imagine what such programs will eventually cost after the waste, fraud and abuse sets in.

“While it may be sometimes tougher for us to sell a property when people are in it, we understand that lots of people are in tough situations right now,” said Chuck Greener, a Fannie Mae spokesman. “If a renter wants to stay in their home, we’ll make that happen. And if they want to move out, in many cases we’ll help them pay for the move.”

Comments

[Fred Beloit]

Lordy day in the evenin', more money down the drain. And get this: science-ignorant Al Gore scares the living crap out of science-ignorant Obama with Gore predictions of looming warming disaster.
"'The time for delay is over; the time for denial is over," he said on Tuesday after meeting with former Vice President Al Gore,...'"
http://apnews.myway.com/article/20081214/D952LKP00.html
If it weren't going to drive us all to the poor house over nothing, I would be LMAO.

The sky is falling, including the celestial orbs. It won't go up again until the next cocklicranes.

[syn]

The real tragedy is how Freddie-Fannie are depreciating the real value of privately-owned homes; this is not a Democrat vs Republican vs Centrist vs Libertarian.... this hits everyone who has invested in real property.

I rent (have what is called a lucky against inflation lease) so I'm not one who be the loser but I feel sorry for those who are directly involved in this, which is everyone who owns a home.

Just wait until college kiddies find out several years down the road that their inheritance homes are worthless.

One would think that regardless of political affiliation those who own their homes would be outraged by the theft.

[Eric Blair]

Oh jeebus, houses are not going to be 'worthless'. Maybe they'll go back to costing what they did in '96, but worthless? You demonstrate your ignorance with that statement.

A house isn't an 'investment'. Anybody who thinks it is, or bought their house as an 'investment' are like the asshats who collect baseball cards as an 'investment'.

And I'm willing to bet that my mortgage is less than your rent, too.

[syn]

"Maybe they'll go back to costing what they did in '96, but worthless?"

However, in 1996 the Feds did not own the number of mortages they own today (I believe the number now is half the mortages in America).

How do you value something which no longer holds value. Yes indeed, a home is not an investment. You are correct, it is a place to live unfortunately, home owners borrowed off their homes, which they could not afford in the first place, as if they were a bank but instead of allowing the market to properly operate the Feds are buying up the bank not that home. What it comes down to...that mortage you paid is now simply rent. Rent-seeking nation:

http://www.realclearpolitics.com/articles/2008/11/rentseekers_run_amuck.html

The difference between your rent and mine...you have to pay property tax. A tax which will most certainly increase from state to state over the coming years to make up for the lost revenue which is now being used to pay for those mortagage (or rather bank) failures.

Do tell, who will purchase your home if the cost of your home is greater than its value? Most likely, the government.

[Eric Blair]

Who says I'm selling? This is the big fallacy here. You simply assume that the only reason anybody buys a house is to sell it for more money later.

And your rent is going to go up relentlessly year after year, because the property taxes for your rental are included in the rent, someplace. My property taxes actually went down this year, too.

Stocks may not have intrinsic worth, but a dwelling in habitable shape? Land? Don't make me laugh. That always has value.

[fatsacca]

Hate to break to you but renters pay property tax also, its passed through as part of the rent.

[syn]

"And your rent is going to go up relentlessly year after year, because the property taxes for your rental are included in the rent"

I don't think you quite understand what a "lucky against inflation lease" is, rent increases are determined a Board of Government Officals...even though private sector landlords own the property they really have no say in matter.

[syn]

"Who says I'm selling"

Well, you are not going to live forever and since you can't take your home with you when you go wouldn't you like to have the freedom to pass that asset on to those of your choice instead of the government?

"Land? Don't make me laugh. That always has value."

Not if the government owns more land than the private sector.

[Eric Blair]

Not if the government owns more land than the private sector.

Last I checked, the government is the largest landowner. Always has been.

[syn]

"the government is the largest landowner. Always has been."

No, not always however has always been expanding ownership of private sector. Further compounding the problem, the Kelo decision has basically ended that thing called 'right to private property'

This is why I do not understand why you are not outraged; the government is stealing your right to private property whether through New Deal FDR-like rent-controls, Freddie-fannie mortgage theft or through the Supreme Courts!

Why are angry at me and not the politicians stealing your own private property?

I feel sorry for what is happeing to you and you are jumping my ass.

[Eric Blair]

Yes, always. Get your history straight, first.

The Supreme court was actually right to toss Kelo back at the legislatures, who make the laws in the first place. Following on the old saying that 'all politics is local' You'd best get some idea what your local politicians are doing first as well. I bet you can't even name who is on your town council, or your state representative. When is the last time they heard from you?

The Federal government is no more corrupt than your local government, and that's where it all starts.

[syn]

Instead of explaining why Conservatism doesn't work, would anyone explain to me how government provides a viable, healthly support system by taxing NON-DIET SODA or forcing Indian retailers to profile their buyers and engage in extortion?

NY Gov Patterson's plan to serve the community:

"The plan will come with a host of revenue raisers — increased taxes on hospitals and insurance policies, for instance — and at least one new assessment, a so-called obesity tax on non-diet soda to raise $404 million. The governor also is contemplating requiring new license plates to raise cash, reviving sales tax on clothing purchases, removing the tax cap on gasoline and threatening to require Indian retailers to collect taxes on sales to non-Indians by signing into law a bill passed earlier this year by the Legislature.

http://www.timesunion.com/ASPStories/storyprint.asp?StoryID=750267

[syn]

"The Federal government is no more corrupt than your local government, and that's where it all starts"

True enough all politics are local and, of course except in the specific case regarding the next President, government is corrupt; personally I don't make a distinction between any of them.

I live in a highly populated Democratic Partyland where 80% of the voters here tend to prefer the corrupt when they serves their purpose.

"Supreme court was actually right to toss Kelo back at the legislatures, who make the laws in the first place."

Oh.... that's good to know. Perhaps Roe vs Wade will be next.

[Fred Beloit]

syn: "Oh.... that's good to know. Perhaps Roe vs Wade will be next."
Ouch. Can't wait for the reply.

[Eric Blair]

Probably should be kicked back to the people. Its not like the people voted on Roe vs. Wade, now did they?

Maybe you need to try to convince your neighbors to vote the way you want them to. Worked in CA on prop. 8 didn't it?

And don't buy soda. It's not like that stuff is good for you anyway.

I can't wait for the screams of outrage when the One's universal health care mandates exercise for the fatties.