I don’t believe in this because the vast majority of these people removed cash from their residences and bought luxury vehicles, took trips and sent kids to college with the money, etc. They should have lost their homes long ago.
It’s not fair to the rest of us who kept our head down and paid our bills all during the (lengthy) fog-a-mirror-get-a-loan party.
Some of them undoubtedly mattressed some of the cash they took out (“stole”) from their residences and are still using it to supplement their (meager) incomes today, enabling them to work part-time or not at all while paying on ~2% APR loan mods for 40 years.
This proposal enables this huge bunch of scammers to continue to “work the system” while letting their properties go to waste, thereby bringing down their neighborhoods. Of course, since their entire mortgage (with back principal and interest) will come home to roost when/if they sell, they never will sell and there is no incentive for them to sell since they won’t recover anything. They also can’t afford the maintain their homes for the duration …. until they die. That’s too long for people like me to sit around and wait since they are mostly all (opportunistic) Gen Xers. I was hoping to see much quicker foreclosures and different, more financially solvent folks get into these properties who have the means and wherewithal to repair and improve these properties before I put my property on the market.
This group never should have been qualified for a purchase money mortgage to begin with. They’re losers and should be renting.
As you may surmise, I’m “acquainted” with several of these people and my opinion of them is that they are scum.
