Do you want a bailout gift from the government? Well, it's happening all the time with the CARES Act, enhanced unemployment benefits, stimulus checks, and more. The fact of the matter is, we paid for the bailout gifts through taxes.
The Emergency Homeowner Loan Program, or EHLP, aka Government Big Daddy Bailout Fund will provide zero-interest loans of up to $50,000 to pay your mortgage, property tax and insurance bills for up to two years. That is pretty damn good, considering those who need such help probably make under $100,000 a year and have homes valued right around the median price of $170,000-$200,000.
Supposedly, the program allows you to limit your mortgage payment as a percentage of your income to 31% or $150, whichever is greater. The EHLP will pay the balance. Homeowners can receive this help for up to 24 months, or until they run through the maximum EHLP loan amount of $50,000.
If you keep up with your payments over a five year term, each year that passes, you don't have to pay back 20% of the loan! That's a free $10,000 a month you get to keep a month up to a total of $50,000! Let's say my house is worth $2 million bucks, which is not unreasonable for a 2,800 square foot house in a good area of San Francisco.
Given the loan is probably around 25-30% of the total value of the typical homeowner's house, that's like a San Franciscan homeowner getting a nice $500,000-$600,000 loan for free baby!
Bailout Gift From The Government
I would borrow that $500,000-$600,000 in a zippy by declaring hardship, pay off the loan amount regularly for 5 years and jump up and down singing “I love you Obama!”
Given only $1 billion is available to ALL of America, which is seriously a drop in the bucket, I would probably be tempted to share some of the $500,000-$600,000 free money from the government, with the application officer.
You know, buy them a Mercedes Benz, send their family on an all expenses paid two-week trip to Disney World or Hawaii or something. It's all about sharing the wealth as the government continues to redistribute!
We've only got until July 22, 2011 until this stupid program is over. When it is, don't worry, I'm sure there will be some other discriminatory program the government will come up with that will only help a tiny minority. But hey, at least our government is trying.
Be one of the first 30,000 applicants and win by applying here! But one thing before you waste your time applying for the lottery, if your income is over $75,000 you are shit out of luck!
Remember, our government is all about wealth transfer. There's no way someone making $85,000 a year could need help too. Nope! Only $74,999 and below.
It just goes to show you that one should always buy a home when your finances are in order. The government highly favors the owner class over the rental class.
They allow for mortgage interest deduction as well as fantastic free money subsidies if you bite off more than you can swallow. Don't fight the government. It's like Peewee Herman trying to fight Godzilla! We're all struggling in some way. We might as well go with the flow and take advantage of the government while we're at it.
Happy 4th! Don't forget the government loves you, and this program proves it!
Renters, how do you feel about homeowners getting a free $50,000 from the government? Homeowners, how do you feel? If you know the government is there to bail you out and provide free money for your entire home ownership experience, why would you rent if you have the money?
Regards,
Sam
I need it to help me go to hair school
My daughter and I live in a 16×7 foot travel trailer. We rent the space it sits on at a local campground. I just found a house on a little over two acres for $55,000. I would love a loan or grant like that. But will not happen. If they gave grants to renters we would have more homeowners, but I really don’t think they want this. And for $12,000 more I can have our things shipped here from staorage and have furniture and a vehicle. A small amount for some, unreachable for others.
how do you get this money from the government and who or how do you get in touch with the right people
The bailouts are starting to remind me of a blue light special at kmart… sad…
I’m starting to regret the fact that I’ve been financially responsible my entire life…
Acting as my dad would while joking around: “Stupid, Stupid, Stupid” as I pound my head against wall (again jokingly).
I am so glad Obama loves me.
Think of the giant bailout that will be announced right around election time. I can’t absorb all of the government offerings- I am still struggling to understand the release of oil from our reserves. Maybe I shouldn’t go on vacation anymore so I can keep up with all of this…
Gotta love election year and all the goodies the government doles out! I’m pretty certain Obama will get re-elected, unless unemployment rates stay above 9%.
If unemployed is below 8%, the market will be 10% higher imo, and of course, the Democrats will be re-elected and we will have more freebies and government spending.
Given that the current financial crisis is at least partly due to a political agenda to encourage home buying by people who would struggle to get arm’s length mortgage finance, this just illustrates how incompetent and out of touch with reality the politicians are. They seem to have more in common with failied Soviet era central planners than leaders of a not-as-free-as-it-was capitalist economy.
Having either bailed out just about every demographic imaginable, the only special interest group left is the taxpayers – current and future – who are being asked to foot the bill for this socialist nonsense. Where is the taxpayers’ bailout?
Maybe Socialism isn’t so bad though. Feels good to always have a backstop in case we get in over our heads no?
Not when you’re expected to backstop all the people getting bailed out. I’m happy to pay taxes for [insert appropriate uses] but getting more than a little bit fed up with bailing out the stupid, the greedy, the lazy, the dishonest, the reckless and those our politicians wish to bribe.
Looking forward to the day when I cease to be a US taxpayer.
If Socialism were used responsibly by everyone it would be a great deal. Healthcare if you have a car accident? Great idea. Help subsidizing post-secondary costs, great idea. Paying people to do nothing and bailing out terrible business decisions at all income levels…Terrible idea (although not priceless…costs about 1.5 Trillion a year too much).
Wow, makes me wish I hadn’t paid off my house. Apparently there’s money to be made in being a crappy manager of your own money. I’m so tired of feeling like I’m the only one who does the right thing by paying all my bills, staying out of debt, saving for emergencies, and investing for my retirement. I’m half tempted to go back to credit cards and rack up tons of debt since there are few ramifications for it anymore…
I feel exactly as you do! I paid off my house and now I’m regretting it. Had I been more financially irresponsible, I would be much better off today.
Nice how the government is re-enforcing financial folly. I’m glad I’m paying taxes so other can live a larger life than me… grrrr
What I would do is set up a separate entity like a LLC and milk the government for all you can! Pet the entity subsidize your expenses and you go in and enjoy the Miller high life!
The terms of the program are rather nuts. I wouldn’t be too surprised if they extend it. Our government loves to keep around expensive programs that only benefit a small number of people.
I couldn’t believe they were doing this again. HAMP was a complete and utter failure and they’re giving away more? It’s just pissing money down a rathole. These people can’t pay their mortgage under any circumstances and we’re just giving away another Billion. Crazy.
When you say “The government highly favors the owner class over the rental class”, I think it’s really just the administration trying to give away as much stuff as possible in an election year. It won’t surprise me if in the fall we see the “Renter’s Relief Program” to pay renters monthly to not break their leases. It’s crazy!
As a landlord of several properties, I welcome the renter’s relief program so that I’ve got a backstop! :)
Let’s go government! Give us more discriminatory goodies pls!
Sounds like a good idea. But, our current administration is at odds again and probably doesn’t want landlords taking advantage of renters even though the administration is trying to help homeowners. Hmmm.
I wonder as more and more of these types of programs come out if less and less of hard working americans will start to be less and less honest with the government?
I mean why pay taxes if they are just going to benefit someone else? It might be a good time to start bartering whenever possible, because your tax money is going to benefit someone else while you’re sweating blood and tears…
On second thought why fight the system, let’s all go out and buy more than we can’t afford! Houses, cars and whatever strikes our fancy, after all the government will bail us out!
Sad, very sad…
I know 4 people milking unemployment for all it’s worth. Two have already gone on 6 week trips around the world while collecting $1,400/month in unemployment. Now that is sweet!
A good idea is to create a separate entity, like a corporation and just go nuts.
This sort of fraud is even worse in Canada. I know about 20 people who work very high paying seasonal jobs, then collect ultra-high rates of employment insurance for 6 months a year due to that high pay rate when they do work. They are perfectly capable of working the whole year, but why would they work when they can get a great wage sitting at home? Terrible economic incentive.
That would be awesome but geez is that a short window to act on it. Hopefully they extend it.
I read about this program recently. I’m wondering if it may just prolong the misery of the real estate downturn or if it will actually offer a legitimate solution to struggling families?
Perhaps a better solution would be for the mortgage companies who allowed borrowers to buy homes without income verification should create a fund to rescue the housing market. Lets also include the investment bankers who sold the mortgages too. In other words, all the people who profited from the house of cards to pay for it.
Yep, let’s help everyone! BTW, 3rd time I tried commenting on your site and can’t. Your comment system doesn’t allow me to type. Might be me, or maybe not. Best to look into it.
It isn’t so much to help everyone, but to have the people who benefited most from this situation to pay to fix it. There are limits to everything, they could create a pool of all their profits and that would be the limit. A lot of money was made from these transactions, why do they get to keep it and the taxpayers pay for the fix.
The people who benefited the most are those homebuyers themselves who were able to live way beyond their means and are now getting another bailout!
i have a better idea – just hand out cash and have people line up to get it. might as well. another incentive for irrational decision making
Great idea! I’ll pay someone 50% of the free money so I don’t have to do anything.
What if you were to only need$26,000 of the$50,000 after three years wouldn’t it be paid in full??
Seems to me like the government is still kicking the can down the road. Giving money out to homeowners, while the government is in debt for how many trillions again?
If the government is going to put us in debt by $1.5 trillion, what’s $1 billion between friends?
True. But every little bit counts I guess.
Man this is a little too left wing for me, and I’m a pinko, Socialist-Canadian haha; but seriously, this will encourage the exact opposite of what they’re hoping to avoid in terms of responsible consumer behaviour and responsible use of Credit. The USA has been killing small scale loans to help fund new small businesses, and are desperately trying to cut back on the deficit (roughly the same per person as Greece), but this is considered a spending priority? I don’t enjoy the idea of repossessing a home, but still…
Lol, nice! Never heard of the term “pinko”. When we meddle in free markets, we inevitably create further unintended ripples that are often times negative. Are you still in Uni and if not, how long have you been working?
I guess technically I am in University again. I graduated last year and have been working, I am starting my Masters Degree over the summer.