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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (103895)	11/5/2011 11:09:02 AM
From: ChinuSFO	Read Replies (1) \| Respond to of 149317

Good post. It got me thinking and my initial reaction is that the Govt. should bot be in the business of giving cold hard cash away. Or even the banks should not be expected to do so. OTOH, if these folks had job opportunities, wouldn't they be in a position to pay down the debt over an extended period of time instead of the original 30 year period? Besides, in a good economy, the houses will appreciate. So why should anybody want to lower the principal when the possibility exists for price appreciation in a good economy.

To: Road Walker who wrote (103895)	11/5/2011 7:16:06 PM
From: tejek	Read Replies (1) \| Respond to of 149317

Her truth begins with a shocking calculation: of the 55 million mortgages in America, more than 10 million are reasonably likely to default. That is a staggering number — and it is, in large part, because so many homes are worth so much less than the mortgage the homeowners are holding. That is, they’re underwater. What do you think? At one time I would have been against reducing the principle but given the way people were finagled into these mortgages, I have changed my perspective. If clear evidence can be shown that people were duped, then I think there should be principle reduction. That wouldn't include people like me who bought at the peak but knew what I was doing. Rather, it would be people who got into loans with no money down and small mort. pyments the first two years like $800 per month only to see that number jumb up to $2K per month at the end of the second year.