Free From Broke

A Personal Finance Blog for Regular Folks

Economy

The economy is a tricky thing that at times makes perfect sense and others...well not so much. Articles here help you understand what is going on in the economy and how it affects your wealth.

Mortgage Plan to Help Homeowners – $26 Billion Settlement with Big Banks

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If you’re wondering when help will arrive for your underwater home, on February 9th, 2012, a giant step forward was taken on your behalf.

The Obama Administration announced a settlement with five of the largest banks, Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, and attorneys general in all states with the exception of Oklahoma.

The $26 billion foreclosure settlement brings to a close the litigation surrounding the use of robo-signing in the foreclosure process and may provide much needed relief for many of the nation’s underwater homeowners.

Background

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Obama Mortgage Relief Refinancing Plan – A Tax on Big Banks and More

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We Can’t Wait

That’s the new slogan that the Obama Administration is trying out, presumably thinking of the campaign as Obama approaches the full force of election season.

In Las Vegas, one of hardest hit housing markets in the United States, Obama said, “we can’t wait” for an increasingly dysfunctional Congress to do its job and provide relief for the millions of Americans underwater on their mortgages.

Obama went on to say that the housing bubble was the greatest cause of the current economy and that millions of Americans have continued to responsibly pay their mortgage even though their home is worth less than the value of the loan.  In his recent State of the Union address, Obama laid out a plan to help underwater homeowners.

Here’s how the mortgage relief plan would work. [Read more…] about Obama Mortgage Relief Refinancing Plan – A Tax on Big Banks and More

Three Stories That Prove Consumers Still Have Power

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There’s a story that the media has missed in all of their 2011 wrap up stories.

It’s one of those rare feel-good economics stories that deserves to be relived because in 2011, one group above so many others who tried, showed that they have far more power than what they thought.

It’s not a story about Wall Street bankers, Washington politicians, the Tea Party movement or even the Occupiers.

It’s about you.

You, the consumer, showed that when you speak, you can influence the actions of the world’s biggest companies.

Not convinced? [Read more…] about Three Stories That Prove Consumers Still Have Power

Senate Passes Bill to Extend Payroll Tax Cut Temporarily (and Other Provisions)

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On December 17th, after what were characterized as more heated, intense negotiations, Republicans and Democrats in Senate came to a compromise that extends the payroll tax cuts for just two months. 

The House still needs to pass the bill, then it’s up to the President to sign the bill.

The Obama Administration wanted further cuts that would save a household making $80,000 per year an additional $2,500 in tax liabilities.

If the payroll tax cuts haven’t been high on your reading list, there are a few reasons why that should change.

Within the bill there are winners and losers and much like the recent Supercommittee impasse, when this issue surfaces again in February, your paycheck could be at risk if both parties can’t come to a longer term agreement.

Here are a few reasons you might want to keep up with this issue. [Read more…] about Senate Passes Bill to Extend Payroll Tax Cut Temporarily (and Other Provisions)

Unemployment Extensions In Jeopardy – What Long Term Jobless Should Consider Doing

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Congress is racing against the clock to renew extended unemployment benefits.

Democrats in the House and Senate would like to renew the current program, allowing the unemployed in the hardest hit states like California and Illinois, to collect unemployment insurance for a maximum of 99 weeks.

If the GOP’s plan goes through, these states will see that maximum cut by 40 weeks, leaving millions of people in an even tougher financial crisis.  If Congress doesn’t move fast, about 6 million people will lose benefits.

How unemployment extended benefits work

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