Senator Jeff Merkley Announces New Plan to Help Underwater Homeowners

Senator Jeff Merkley takes to the whiteboard to explain his new plan to rescue the housing market.

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  News & Politics

[Hankusb]

Senator Merkley this is a good plan. Many of these underwater homeowners were suckered into bad loans by unscrupulous bankers and unscrupulous mortgage brokers. We made the banks whole again, even though they did NOT deserve to be made whole again! We absolutely owe it to these suckered homeowners to make them whole again too. They are NOT getting a "free lunch" under your plan. They are still paying off their loans, but at an affordable rate. God job Mr. Senator!

[sixsix7minus1]

Many of us suffered a loss of bank interest on account of these persons refusing to BOYCOTT high house prices. So we end up with this inflation as a result of Bernanke manipulating up the stock market because millions of people refuse to hold back on overpaying for houses? Can you all see how this is unreasonable?

[sixsix7minus1]

How about helping out those who actually USED their minds, knowing of PE ratios in a bad economy, knowing just how bad the economic data is and yet lose from the purposeful manipulation of the stock market to be 100% higher than would otherwise had Bernanke not gotten involved? Manipulation is unlawful but Bernanke gets a free pass. There is a big difference in losing when an unlawful activity was going on versus not thinking about house prices and willing to sign a contract to buy regardless.

[sixsix7minus1]

I don't like this plan. It coddles those who chose not to spend wisely and continues to hurt those who were responsible. I sure wanted to buy a house but the ratio of house prices per income is far too high and makes no sense to buy, even now! In Southern Oregon the ratio of median house price per median income is around 6, or 2X too high for the high range of what would be reasonable based on historical data of times when our country was better functioning.

[sixsix7minus1]

We need lower house prices, not higher. To purposely keep house prices higher and further stimulate house prices to go higher while wages are stagnant or going lower, it fuels the wealth divide and that bodes poorly for society. Those who bought houses without thinking of the ratio of house price per income were irresponsible so why is government worried about coming to their rescue?

[Barry Murphy]

Great Job! I so agree with you. Thanks for your hardwork!

[Mike Fruzzetti]

It's nice to see one of our lawmakers at least trying to do something for the "rest of us." It may not be the perfect solution...but it's nice to see an approach on the problem. How many trillions has Wall Street benefited from between the taxpayers and the Federal Reserve?

[Annie Allerdice]

I am with you on this. Those of us living in Urban residential buildings are not included and we as much as a single structure homeowner are just as much at risk as anyone. I live in Portland, due to our Urban Growth Boundary we have a multiple of Multi home structures. To eliminate them from this program is clearly only going to serve the small portion of the ailing home owners. My home is upside down by 100,000.00. Seriously, include us all, so it is a fair and equitable program. Thanks.

[Lee Rice]

The only way this will work is to have the bank reduce the mortgage to the present value. People do not have the funds to continue to pay these high payments. Food has gone up, fuel has gone up. Where is the money going to come from to pay on this new loan. I am not doing a thing until I find out how the election turns out in November.

[Lee Rice]

This will never get it. We bailed the banks out while listening to our lawmakers telling us all will be well if we go along with the bailouts. Well not so. I put more than 20% down and now I am living in the world of ownership of a home nowhere near what it is worth. Sorry, this plan will not work. You are still paying on a loan that is higher than value of home. Someone will gain from this but not the homeowner

[SolarEXtract]

I'm in the exact same boat as you. No help because I'm with BoA and now I'm on the brink of doing a short sale because I'm all out of options. Soon, I may be homeless.