What they’re doing is crafting legislation that will make a deal with banks to write down their mortgages to the homeowners and in return the government goes on the hook for the liability if the loan goes bad. This lets the banks clear their balance sheets of problem loans/
Now, this is right out of a Looney Tunes cartoon.
*If they think people will stay in homes that are worth 30-60% less than they’re paying for with their mortgage, they must be smoking some strong stuff. If the banks (with a safety net from the U.S. Govt), renegotiate a $500k loan down to $400k and at a fixed rate and the home is now worth (or will soon be worth) $300k, a LARGE percentage of homeowners are gonna walk away and rent or buy a home that’s selling at true market price.
*And who would finance the mortgage if they ever tried to sell it at the value of the mortgage? And when they can’t sell it, they will walk away.
*And how many people would qualify for a mortgage (down pymt and income requirements) if they could find a buyer? Not many unless the government wants to start another housing bubble by financing homes at values greater than they’re really worth. (sound familiar)
*And how would they get an appraisal?
All this will do is shift the liability of all of these potentially fatal mortgages to the Federal Government, i.e. the taxpayers.
The older I get, the more I am convinced that there are essentially nothing but crooks and thieves. masquerading as Senators and Congressmen & women. Any of us who have saved our money and acted responsibly just keep getting it stuck up our rears and there’s really not a whole lot we can do about it. Charles Schumer is heavily involved in this latest escapade. I have thoroughly disliked Schumer for a long time. It started when he proposed a 50% tax on ammunition many years ago. He was shouted down with his bullet tax and it went away but it convinced me that the man is an idiot and a first class asshole. Since then, he’s done plenty of other things to convince me that I was correct. This STINKS!
Gotta go now and grease my ass up with my daily dose of Vasoline for tomorrow’s schennanigans from Capitol Hill.
