Posted on 03/08/2010 10:06:57 AM PST by TheDailyChange
For the borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lenders assurance that they will not later be sued for an unpaid mortgage balance.
(Excerpt) Read more at nytimes.com ...
So how stupid does that make me for continuing to pay my mortgage?
Election year coming up. To thwart the Dems bloodbath that will purge the majority of them, they are trying to extend some more BS hope for the homeowners who are stuck, this tactic is only because they need the VOTES.
Like I said, if it is too good to be true, it probably is.
From the article:
“The problem is highlighted by a routine case in Phoenix. Chris Paul, a real estate agent, has a house he is trying to sell on behalf of its owner, who owes $150,000. Mr. Paul has an offer for $48,000, but the bank holding the mortgage says it wants at least $90,000. The frustrated owner is now contemplating foreclosure.
To bring the various parties to the table ... the government intends to spread its cash around.
Under the new program, the servicing bank, as with all modifications, will get $1,000 ...”
So the bank wants $90,000 but the only offer is for $48,000, a $42,000 loss. It boggles the mind that the government (and the reporter too!) thinks that giving the bank $1,000 (reducing their loss to $41,000) is going to do anything at all.
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