[GAgal]

In tonight's debate, Biden said that he and Obama wanted to give judges the ability to change the principals of loans: "Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe." Note he repeated it to make sure he got that across. That should outrage responsible voters who live within their means.

[Dems_R_Losers]

Wow, I missed that part of the debate! This is outrageous and will kill what is left of the housing and mortgage industry.

[Jedidah]

I heard Biden say that, and my jaw dropped.

Am I the only one who didn’t know they were considering this? Astonishing.

[wtc911]

Note...the 'rescue' bill that Mccain signed has exact language that allows the feds to reduce the principal on delinquent mortgages.

Furthermore it mandates that holders of secondary mortgages (and home equity loans) will have to accept any amount that the feds decide to give as full payment.