The Homa Files

This one just won’t die … and it gets me riled every time its heart starts beating louder.

Why should people who bought houses they couldn’t afford have their bad behavior rewarded with loan forgiveness while their mortgage paying neighbor has to pay off the full amount they borrowed ?  It just doesn’t make sense.

Maybe they should cut mortgage principle balances across the board — good loans and bad loans.  Let real home “owners” (like me) feed at the trough, too.  Better yet, extend the program across all loans — say auto loans.  I bet many Toyota’s are underwater these days …

CNBC: Force Banks to Cut Mortgage Principal: Watchdog, 20 Apr 2010

The watchdog overseeing the $700 billion bank bailout said that the Obama administration should consider forcing lenders to make principal reductions for struggling homeowners who owe more than their home is worth.

Further, he  urged the administration to consider extending the amount of time unemployed homeowners are forgiven from making mortgage payments as the maximum six months now allowed may not be long enough.

Full article:
http://www.cnbc.com/id/36658764

This entry was posted on April 23, 2010 at 7:57 am and is filed under Mortgage Crisis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.