Saturday, September 04, 2010

White House to Deploy Broader Mortgage Aid -

White House to Deploy Broader Mortgage Aid - "Officials say between 500,000 and 1.5 million so-called underwater loans could be modified through the program, the first initiative to target homeowners who are current on their mortgage payments but are at risk of default because they have no equity in their homes. Some experts are warning, however, that the same knots that tied up prior initiatives could do so again.

Under the new 'short refinance' program, banks and other creditors that write down mortgages to less than the value of the property can essentially hand off the reduced loan to the government. The process involves refinancing borrowers into loans backed by the Federal Housing Administration."

I mentioned weeks ago that this was coming. When an underwater borrower hands off a chunk of their debt to "the government," that means "the taxpayers," so I'm pretty sure that means that people like me are paying somebody else's mortgage. I don't know about you, but I'm getting sick of this kind of "aid." Who, precisely, is going to pay a share of my mortgage?

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