Look I don’t like this deal either by a long shot, but let’s have some perspective. This Federally sponsored program, and its on a volunteer basis. It will take 3 to 6 months to implement, and investors will never go for a blanket freeze. They will want the loan servicers to make sure the guys they help actually qualify. This means a little more one to one basis than the feds are looking at.
When was the last time a fed program actually worked as it should. It reminds me of when the president mentions a program on the state of the union speech, and then everyone goes wild for and against it, and the plan never sees the light of day. This will see the light of day, unfortunately, but I have faith in the feds that they will screw this one to the point that it will be too little too late. Prices are coming down to affortability, and I think that decline will actually start to pick up steam. If anything, this program may stop the death spiral that may happen because of “no hope” of a housing bottom may cause a panic in the chicken littles inside of all us. Some of us just have a higher threshold!