Monday, July 13, 2009

U.S. mulling mortgage aid for unemployed | U.S. | Reuters

U.S. mulling mortgage aid for unemployed | U.S. | Reuters: "NEW YORK/WASHINGTON (Reuters) - President Barack Obama is mulling new ways to delay foreclosure for jobless homeowners who are unable to keep up with monthly payments, an administration official said on Monday.

The official told Reuters it was reasonable for policymakers to consider options for loan forbearance -- allowing borrowers to delay, defer or skip payments -- that are more effective than those currently available in the private sector."

But if you impair the bank's security, why should they lend in the first place? Are they just supposed to lend money and not get any loan payments? How is that a business model? I realize it sounds great to a socialist, but we are talking about the real world.

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