because they know these borrowers are a really BAD risk in the first place.
I am not in favor of this plan. But if it is going to come to pass, these are ideas that may make sense and be helpful.
It will help eliminate some of the costs of maintaining the properties. You can have families stay in neighborhoods where their children are already enrolled in schools and have friends. Where they have pride in the property that they have called home for several years. This is the reality of the situation. There are folks in my neighborhood that are having a hell of a time paying a 1500 per month mortgage. Plus taxes. Rent it to them for 1000 and see how it works. Better than rows of empty homes with grass up to the knees and crackheads squatting in them.
This is a way to have at least some money coming back into the fed right away. If they do not pay, evict them.
Many families are suffering from this. If corporate lenders are going to be able to wipe their books clean, the least we can do is offer a little help to these folks. Not bail them out, but throw a life line half way.
I can feel the beating coming from you guys already! LOL