[quote=pemeliza]Although I am strongly opposed to principle forgiveness, I am in favor of government backed financing for homeowners at today’s interest rates on “existing principles” as long as the borrower can afford the payment under reasonable income ratio assumptions (even if the borrower is underwater).
If the homeowner cannot afford the house at 4% then the solution IMHO is foreclosure.[/quote]
I can agree with that.
The thing that really got me irked about this “plan” was the idea that GSE-owned homes be used for rentals and then, somehow, “investors” with government loans would…what?…buy them?!?!?!
WTF?!?!? Since when are taxpayers/govt responsible for making these parasitic “investors” rich, and at the expense of renters and future buyers, to boot?
