By CELESTE NIXON
Tribune Staff Reporter
cnixon@tribunemedia.net
DESPITE the lofty promises, only about 700 people will benefit from the government’s mortgage relief initiative, FNM leader Dr Hubert Minnis said yesterday.
During a press conference at FNM headquarters, Dr Minnis said last week’s announcement of the Mortgage Relief Scheme was a clear case of “cynical smoke and mirror politics” – as the numerous preconditions and restrictions will severely reduce the number of people who benefit from the “watered-down” programme.
“This so-called plan provides no assistance whatsoever to those Bahamians whose home have already suffered foreclosure,” he said. “Further, it will not prove to be effective in helping the thousands of Bahamians whose homes are now being threatened with foreclosure.”
The plan itself, Dr Minnis said, limits the number of people who are eligible for relief by imposing preconditions which were never indicated when election promises were made.
“None of these conditionalities were made clear when the PLP were promising voters that all would be well and that their defaulted mortgages would be taken care of by the PLP government.”
“This is not what they said initially they made the Bahamian public believe that they would all be rescued, this pie in the sky,” he said. “They made them believe that once you elect the PLP today, tomorrow your homes are saved – that is what they sold and now they are saying we can’t save it, but we can look at 700 of you.”
Last Wednesday the government laid out the parameters of the mortgage relief plan, Minister Michael Halkitis later telling Tribune Business that it had allocated roughly $10 million to the plan with some 1,500 persons qualifying for mortgage relief.
According to Minister of State for Finance Michael Halkitis, the government will launch the plan in the first week of September. During his contribution in the House of Assembly Mr Halkitis said requirements for eligibility under the plan were: Owner occupied primary residential properties only, including owner occupied duplexes, not vacant lots or revenue generating/investment properties; mortgages originating prior to January 1, 2009; outstanding mortgage principal amounts, not exceeding $500,000; acceptable credit history prior to June 30, 2008 and loans that are delinquent due to documented financial hardship caused by involuntary unemployment or chronic illness.
Mortgages must also have sufficient sustainable documented and verifiable income to support the restructured payment and lenders must have a valid first and possibly second mortgage and the property is clear of other mortgages or loans.
Mr Halkitis also said the borrower would have to sign a forbearance agreement and perhaps new loan contracts that outline the extent of their obligations and the results of any breach.
However, Dr Minnis said, the main problem facing the unemployed is the lack of “sufficient, sustainable, documented and verifiable income.”
Additionally, Dr Minnis said that the Clearing Banks Association have not been heard from as to whether they support this programme.
“The so-called Mortgage Relief Plan does not deliver on the PLP’s campaign promise made to distressed homeowners, who are threatened with foreclosure. It is another broken promise that will only serve to disappoint and to blight the hopes of thousands of trusting Bahamians who were deceived by the PLP,” he said.
Comments
TalRussell 11 years, 8 months ago
First the red shirts"Original" Hubert said he endorsed his former, law partners Mortgage Relief Plan. So also said the "New" Hubert A who offered his conditional support, both saying the rumored $250 million was not affordable by the new government?
Now, it's much lower at $10 million and all of a sudden the red shirts are shouting that it's not enough millions?
Sorry, you Ingraham red shirts, PM Christie is helping struggling natives and not what you're used to...helping the old UBP Guard's families and your foreigner friends?
PM Christie is putting the government's $10 million where his mouth is to help many natives struggling with their mortgage payments.....yet the red shirts offered "NO" financial relief to home owners in trouble when they controlled the public treasury?
by TalRussell
truth1242 11 years, 8 months ago
What you need to do is... STOP BEING SO BIAS. The point of the matter is. The PLP promised to help MAJORITY of all home buyers. They said that BEFORE and AFTER the general elections. After doing some SERIOUS REVIEW and MOODY's assessment. Shows that it was in fact UNREALISTIC. Now they are saying they can ONLY help a few hundred people. The FNM along with Hubert Ingraham both AGREE with the mortgage relief plan once it was REALISTIC and once it help majority people.THE PLP promised too much and only a FOOL is buying what was being sold ON CREDIT!
by truth1242
TalRussell 11 years, 8 months ago
Comrade truth1242 at least I come on here as an objective truth teller.
truth1242 11 years, 8 months ago
No you come on here as an PLP DEFENDER....The point is, The PLP promised they did not deliver and YET YOU are pointing the fingers to Minnis and Ingraham. Both wants the best for all homeowners who are having problems paying their mortgages. The PLP promised that they will make a mortgage plan that will reduce the cost to help out most of those persons. YET YOU ARE ON THIS FORUM talking about Minnis and Ingraham like they promised the world and then some.....YOU SEE WHERE IM COMING FROM? Its obvious your far from a objective truth teller.
TalRussell 11 years, 8 months ago
If you read me, which you obliviously enjoy, I stated at the time PM Christie announced the Mortgage Relief promise during the 2012 General Elections that the entire government's involvement in Housing i\has and continues to be a complete failure.That they need to get out hell out of it and not pump more millions into any plans.
If any man knows this it has be the lawyer?fisherman from Cooper's Town who has a very long history with government subsidized housing, all way back to his proud Pindling days as the Chairman of The Bahamas Mortgage Corporation, a post he held way back in 1982.
by TalRussell
truth1242 11 years, 8 months ago
DO NOT PROMISE ME 100 dollars and only give me 10 cents. Yet TalRussell eyes are on Hubert Ingraham and Hubert Minnis like they promised me the 100 dollar bill. Any SENSIBLE person would know that The PLP could not deliver such a plan but still promised the Bahamain people it. Minnis, Ingraham, educated people KNOW that it sounded too good to be true. If The PLP had a plan that was REALISTIC then Minnis and Ingraham wouldve agree. But this was only a PLOY just like their 100 day plan. Like I said YET TALRUSSELL is worrying about The FNM. Worry about The government who promised to do something!
truth1242 11 years, 8 months ago
Areas such as Technology, Economics, Philosophy etc. are always CHANGING! What a former Chairman of Bahamas Mortgage Corporation in the 1980's advice might help us but it might NOT BE THE RIGHT ADVICE at this time.What happened in The 1980's are different than what is happening now. What I am stating is that Economics world round argue about what can be done to fix the economy. Its a Global Economy.
The PLP promised to assist those homeowners who need help. A week after office they said they were working on a plan to help those persons. Hubert Ingraham and Hubert Minnis indirectly stated that If The PLP finds a good plan to help those persons without hurting our treasury, Then hey they will be happy and approve the plan. Ingraham & Minnis knew that aint no way the plp could come up with such a plan.
Now you are pointing the fingers at the two men who had THE LEAST INVOLVEMENT with this Mortgage plan. Minnis and Ingraham never was the persons who wrote THE PLP 100 DAYS and the Mortgage Relief plan.
YET YOU ARE ONLY TALKING ABOUT THEM TWO. OBVIOUSLY you are a PLP who cant blame the persons who sold you that dream.
Guy 11 years, 8 months ago
I am totally baffled at how biased this TalRussell person is! Totally baffled! I liken him to Peter Carey, another BLIND and BIASED political follower, but for the FNM. As a Bahamian voter, I expect that those elected officials who make promises to the electorate would fulfill them. It is ridiculous to require struggling, UNEMPLOYED Bahamians who can barely put food on the table to be able to provide verifiable and documented proof of sustainable income to save their homes! The point is they have no income, they have no jobs. For instance, City Markets was able to close down and sell without paying the staff a single penny now the government is gonna turn around and tell those affected persons that in order to get assistance to save their homes they need verifiable and sustainable income??? Are you kidding me? This has to be some kind of sick joke. As the country goes through one of the most difficult recession in recent years we have people like TalRussell who want to play politics and the blame game while the people perish. If the PLP wanted to sit idly by and blame the FNM then they ought not have entered the race. My personal opinion is to FIRE all of these politicians and regardless of the party and elect people who actually give a damn and have the fortitude to get the job done and the county back on track!
concernedcitizen 11 years, 8 months ago
on the city markets thing the gov is going use our treasury to pay the employees ,after Basil Sands and M ,Finlynson etc looted the pension
TalRussell 11 years, 8 months ago
Comrade Guy when you said that :"As a Bahamian voter, I expect that those elected officials who make promises to the electorate would fulfill them. It is ridiculous to require struggling, UNEMPLOYED Bahamians who can barely put food on the table to be able to provide verifiable and documented proof of sustainable income to save their homes!" did you have your defeated red shirts regime in mind?
since you're talking political quackery please allow me to refresh your slipping memory.
The red shirts announced a Housing project in Grand Bahama but couldn't find enough natives to meet their loan approval requirements.
Then, they not long before Hubert ring da 2012 General Elections bell they repeated this by announcing that they were turning a Shanty Town in Nassau into a government Housing project...but again announced that they couldn't find enough applicants to qualify?
by TalRussell
242 11 years, 8 months ago
Wow tal Russel you say 'It is ridiculous to require struggling, UNEMPLOYED Bahamians who can barely put food on the table to be able to provide verifiable and documented proof of sustainable income to save their homes'. Yet this is exactly what Mr. Halkitis said is a requirement to be approved. Now since your foot in your mouth, figure out a way to blame the "red shirts' For Halkitis stating this. Or just don't ever respond, like you usually do when you proven wrong.
242 11 years, 8 months ago
Quoted directly from the article you obviously did not read. You just saw the picture of Dr. Minnis and went straight to comment:
Mortgages must also have sufficient sustainable documented and verifiable income to support the restructured payment and lenders must have a valid first and possibly second mortgage and the property is clear of other mortgages or loans.
Mr Halkitis also said the borrower would have to sign a forbearance agreement and perhaps new loan contracts that outline the extent of their obligations and the results of any breach.
spoitier 11 years, 8 months ago
I don't know why Bahamians still believes what the PLP and FNM says, they are both full of it. That promise was to big and they needed the banks to get involve to fulfill it which was not going to happened, so I say let them both hang themselves because none of them are doing what needs to be done.
concernedcitizen 11 years, 8 months ago
the difference is i can see where our money went under the FNM ,roads ,harbours ,hospitals etc ..since the mid eigthies i can never see where are money goes under the PLP ..our debt rose 800 million from 2002 until 2007 ,can you show me where the money went ...they did build 1000 shoddy low cost homes ,surely that couln,t have cost 800 million
leonardo85 10 years, 7 months ago
The government should consider making this plan useful for more people. However, when it comes to mortgage having the right and updated information matters, it is better to get information from reliable sources like http://tucsonmortgagerates.org">TucsonMortgageRates.org.
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