[quote pri_dk]
Or did you start this thread just to make a cheap, useless, partisan jab? Exactly what Rich has asked us *not* to do, many times over.
[/quote]
Hold on a minute there.. you don’t hold the power of edict.. Rich Toscano does. How does the flippant remark:

Seriously!?!?! Ignore income and credit history!?!?!

Give me a break!

equate to a partisan jab? Absolutely no mention of political sides – anywhere in Huckleberry’s comment. The ‘subject’ post also does not allude to politics.

As for my position on it, taking the approach of ignoring income and credit history risks continuing down the path of moral hazard and entitlement that got us to this point in the first place. At some point it has to stop, iodine has to be poured on the wound to sanitize, the cavity has to be seen by the dentist and fixed, the gangrened limb has to be amputated. It is only a matter of when, not if. The more it is delayed, the worse it will be when it does occur – or the patient dies.

Being less obtuse. An individual who overextends themselves financially to get them in position of needing this type of foreclosure prevention will not learn by being bailed out, and will be fairly certain to re-default even after being refi’d. They will see that their finances are less tight, and see all sorts of opportunities for ‘their new found wealth’.

PS: The comment above is backed with a little experience. I know of someone who is getting a FHA refi.. and is already looking at buying new stuff.. including car. Debt service to gross income is currently over 55%. All I can do is shake my head at this..