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Thursday, May 13, 2010

Free Money to Make Your Mortgage Payment

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Tami Luhby at CNNMoney: States: Let taxpayers cover 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 us $1.4 billion the Obama administration is sending their way to help the unemployed and underwater avoid foreclosure.

The federal governments doling out a total of $2.1 billion to 10 states, which also include Nevada, North Carolina, South Carolina, Rhode Island, Ohio, and Oregon. The other have not yet submitted their plans to Treasury for approval or have not made them public.

This is now becoming a topic of debate as to, who should have their home foreclosed on, who should be helped, and will people just stop paying their mortgages to get help whether they need it or not? Here are some of the opinions stated in the article:

"There are benefits for all if us for stopping foreclosures any way we can." [Alan White, law professor at Valparaiso University]

"Every dollar spent will go to families who need it." [Paul Willen, senior economist at the Federal Reserve Bank of Boston]

"This is more than they would have collected otherwise. The lenders should bear the losses for this. They are the ones who made the loans." [Mark Calabria, director of financial regulation studies at The Cato Institute]

"Why should anybody work if you are going to be in your house either way?" [Casey Mulligan, economics professor at the University of Chicago]

How far should this be allowed to go? How much help to borrowers should be extended? Let us hear from you.

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