Is this the Government paying the banks to forgive loans on forclosure risk homes?
Wow, just not make the payment and the Obama cash machine will payoff your mortgage.
Wonder what secret qualifications you have to have to get this preferential treatment?
No, that isn’t it. The Government is forcing the banks to take drawdowns on the mortgages that they oversold, essentially.
“Under the settlement:
* Banks, not investors, would bear the cost of all writedowns
* There would be no new government programs developed to reduce principal. Rather, the lenders will devise their own modifications or use existing government programs.
* Banks will have to reduce second-lien mortgages when first mortgages are modified.”
“Wonder what secret qualifications you have to have to get this preferential treatment?”
I suspect what will happen is badly underwater mortgagees where the bank has problems with title will get paid a few thousand bucks (in mortgage reduction) but that will require that they rewrite their mortgage. Voila! The bank now has an original note and trust deed.
Mortgagee defaults two months later and the bank forecloses, this time with no problems.
Somehow, out of this, Obama will end up with a 20 billion dollar slush fund to spend on unions and the losses on the mortgages will be transferred to the taxpayers.