[atomicweeder]

Here's my concern -- US government buys the bad debt from the banks (that's actually morally correct since CRA forced the banks to give mortgages to winos in the first place).

Eventually govt ends up actually owning a lot of the mortgaged properties.

Obama, Sharpton, etc. eventually DEMAND that the govt let poor people live in these empty properties. Entire communities turned into crap.

[omega4179]

deadbeats live in them anyway.

[Republican Wildcat]

They should just pay them off and be done with it rather than “buy” into anything else or create a new program - if they do anything. It’s not a good idea in any event because if businesses get the idea the government is just going to bail them out there is less and less reason for them to be careful and thoughtful in their business decisions. I don’t like this at all.

[Azzurri]

I don’t like the looks of this. A lot of people are going to end up with free homes or get ridiculously low re-finance terms from the federal government. In essence, all of us taxpayers will be paying for deadbeats to stay in their home and keep it. You just know the libs are going to try and forgive these debts.

[popdonnelly]

“Eventually govt ends up actually owning a lot of the mortgaged properties.”

HUD was America’s biggest slumlord 30 years ago. Let’s go back to giving loans to people with good credit.

[wardaddy]

that is sorta part of this plan if the Dems get their way

folks with bad mortgages get to keep their homes and we as tax payers assume the difference between the original and what they can actually afford

ain’t America great?

I doubt Mac will fight this with 47 days to go

this issue scares me in the final weeks with the media carring the water too

[Mad_Tom_Rackham]

If they’re going to liquidate these properties at a loss anyway, why not just let the owners stay and reduce their debt service? This could help prevent a lot of properties (and neighborhoods) from going to hell. We’re going to pick up the tab anyway.

[Danae]

I hear ya! You are right one, and those communities continue to allow themselves be manipulated by these “people”, the DNC leadership. Its Astounding.

[EBH]

Or the government does what the banks would/should have been doing with them...Auction them off.

[ARCADIA]

...actually morally correct since CRA forced the banks to give mortgages to winos ..

That's a very minor part of this whole mess. What's more, everyone knows it.

What about the flippers?

What about the speculators who purchased blocks of condos pre-construction to resell after the development was completed?

What about middle-class families that could afford a townhouse but instead got a McMansion with easy money?

What about the families who took out second mortgage on their inflated-equity to put in a pool and a jacuzzi?

Not to mention all the bankers who looked the other way, the appraisers who inflated their assessments, the financial analysts who put in super-optimistic assumptions in valuation models.