FER..
Shhhhhh!! You make too much sense,,, They don’t want you sharing that logic.
Ms Bair is clarifying that it’s not a bailout, remember.
WHY would a FB agree ?? to be able to stay.
There are all the people who are looking for a reason to be able to stay in the house that they OWN, remember.
It’s theirs, the one that they couldn’t afford that they bought with no money down….
The 20% gets deferred without additional interest.
The 80% gets paid P&I, but in the first 5 years you won’t be paying much “pee”
They will still owe the majority of todays 100% in 5 years.
It’s a plan,,,, but not the best one.
FDIC has bigger fish to fry. They are EXPECTING 100-200 bank failures in the next couple of years.. Encouraging sign ?? UH-UH… A bank failure with millions of account holders may just take some priority to sort out.
Even if some ppl were upside down $500K, they have too much pride to get foreclosed on, and some people just aren’t going to walk away, no matter what. They would rather bleed their retirement accounts and the kids college fund to keep making those payments and protect thy glorious, almighty credit score
How dare you tell them that they will owe more than the house is worth in 5 years too…so mean!!
No Aunti em,, it just isn’t possible, I’m going to click my heels and everything is going to be OK,, I just know it.
C’mon Toto,, we’re off on the yellow brick road.
Enough of the common sense and logic…
The bigger issue is if they are offering lower payments and deferring 20% interest free for 5 yrs, WHERE DO I SIGN UP ??
How many payments do I need to miss so I can get the bailout(oops)too ??
There’s no pain to the borrower, just a benefit. I want it also!!
