I hear ya, but this is already well underway. Buried in the "Rescue" Bill was provision to allow " Principal Write- downs". In fact it went on and said there were no limitations as what the feds could do to the loan to insure that foreclosure does not occur.
McCain is not speaking to the base here. He's trying to get the populous undecided vote.
But there’s a big difference between could do and will do!
I don’t think its that bad,they still have to pay for the house,they still pay interest. The neighborhood does’nt go to crap ect. The house gets paid for. The only provision I would put in it is a penalty if they sell the house later when housing prices go back they have to turn the difference back over to the government.
That one nearly killed me but... what if, when the government “renegotiates” the loan, the govt gets a lean on the property for the amount they forgive or interest rate costs incurred?
FWIW, the "renegotiation" would take place after the gov't had bought the bad loan from the lender for face value.
The idea -- which isn't all bad -- would then be to get at least some of the bad loan back by allowing the borrower to renegotiate.
“In fact it went on and said there were no limitations as what the feds could do to the loan to insure that foreclosure does not occur.”
So - hubby and I have paid regularly on time.
In fact we get a few extra payments in each year.
I’m wondering - what incentive is there to keep this senseless course of action?
If we really want to save money, we should stop paying - go into default - and then Paulsen will knock $50 g’s off our principal?