Chris, do you want 2 million homeowners on the street and their properties in foreclosure and back on the market?"
Of course not. But this plan will prevent anything REAL from being done, while propping up the markets. That's all it was intended to do. This is BUSH, pal! This plan benefits some lenders, at it's very best. It's the Medicare Drug Benefit for RE.
I disagree. I think you are being far too cynical. A banker knows that its an expensive proposition to take a property back, redo it and then put it back on the market. This is a plan that makes it alright to try and keep the people in the house. At worse, it will keep foreclosures on a more distributed basis instead of a huge boa constrictor lump at the beginning running its way through the system. Besides, the feds will probably reduce the fed rate, meaning that mortgage rates probably will get back down close to the 'teaser rates' on these loans......so the difference won't be that big.
The VERY few chumps who qualify after the hurdles will be paying INTEREST on houses that will be declining in value for several years.
The decline will not go on for years. Its not even happening in all markets right now. I expect recovery in 2009.
They'd be MUCH better off just to quit making payments, save the money for deposit and rent, and then when time is up, rent some other lender's empty house for less than they would have paid under this "rescue". It's not like they have equity.
For many people, this was their first and only shot at owning a home. If they manage to pull it off, it will benefit them in the long run. Over the long run, owning property in the US is rarely a negative. And we might turn a huge negative [these teaser rate loans] into a positive. |
