Daniel,,
Until today, the JC loans have been a joke. I knew when they announced them that they wouldn’t be useful to most.

Many people are in distress, many are not. Very few people have 50% to put down, but they are out there. It’s a tiny % though.

Most people didn’t qualify for JC’s. There was a limit of 45% total debts to verified income, and most people who need help don’t qualify based on income (or equity position) or both. (The $417K loans will allow up to 60% DTI)

They are still going to help a small % of people, but will make it a bit more affordable for some to buy…

MOST people who bought a house in CA the last 3-4 years have paid more than it’s worth today. That’s a lot of homes that are upside down.

As of today, there are some options for people with equity to get a better rate, but most people don’t have any equity unless they had a large down.

There are a large number of people who bought before 2002 and do not have a mortgage problem at all, but it’s still surprising that some people with equity have 7%+ fixed rates. They are paralyzed by fear..(ignorance in some cases)

The govt is scared and desperate. Any little thing that they do to avoid any foreclosures, is a tiny help. I still see this being a long downward slippery slope, with the average person clueless and in denial.

I see lots more foreclosures to come,, until the govt rolls out the red carpet to the irresponsible, and if they do that, I see riots coming from the responsible side.