economy:

Titus: Bailout should help underwater homeowners

Monday, April 27, 2009 | 5:34 p.m.

Dina Titus

WASHINGTON -- As banks begin to repay (or give back) their bailout money, Democratic Rep. Dina Titus wants the windfall to be used to help underwater homeowners in Southern Nevada.

Titus wrote a letter today to Treasury Secretary Timothy Geithner requesting that funds from the $700 billion Trouble Asset Relief Program approved by Congress last fall go toward creating a new program to help homeowners who owe more than their homes are worth.

“As you know, my district in Southern Nevada has been severely affected by the current housing crisis,” Titus wrote. Nearly 60 percent of the homes in Las Vegas have negative equity.

“I am worried that you see this problem as minor and that enough has been done to help homeowners with negative equity in their homes,” she wrote.

Titus asks that a new program be particularly geared for those homeowners who are more than 105 percent underwater.

Part of the Obama administration’s existing mortgage aid program helps those who are up to 105 percent upside down – meaning they owe, for example, $420,000 on a home now valued at $400,000.

But in Las Vegas, some homeowners would not qualify.

The Obama administration has said if families are in distress and at risk of foreclosure, another part of its program would enable them to work with their lender to have their loans reworked to a more affordable payment.

"I believe that keeping families in their homes will play a major role in stabilizing and eventually ending the housing crisis, both in Southern Nevada and throughout the country," Titus wrote.

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By vmanstuff

April 27, 2009

8:29 p.m.

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Has Congresswoman Titus actually done anything other than talk and write letters? Has she proposed any legislation? I'm not saying she hasn't. The story just doesn't give us any detailed information? I only hope she isn't just going through the motions, so when election time comes around, she can SAY she did something.
By neiman1

April 27, 2009

10:58 p.m.

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What is she thinking? How is money we didn't have, lent to banks, somehow a windfall when it gets paid back?

This isn't NEW money, it's money we borrowed as a country to loan to banks. Now it goes to pay off the loans we took to get it.

Now you know why these brains will follow Pelosi and Reid.
By milfy2001

April 28, 2009

4:41 a.m.

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this is crazy talk !
why should this money be spent on underwater home owners. as usual, the government wants to spend money on the shiftless and irresponsible. why should i pay because my neighbors' assets have negative equity. hey diane, why not help all the owners of stocks who lost value while you are at it.
By lvmachead

April 28, 2009

6:20 a.m.

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All the owners of homes that are upside down are not shiftless and irresponsible. I'm making my house payments and am not planning on abandoning my home, but I can't refinance to take advantage of the lower interest rates, that would put more money in my pocket and then back in the economy. It would also help as my salary remains stagnant (or decreases, being one of those shiftless and greedy teachers)and the cost of living (gas and utilities) increases.