How will this change anything in the long run? Even if they guarantee new/revised loans to delinquent borrowers…the interest rate would have to be so low, or term so long —how would the mortgage be profitable for the lender? (Oh I get it, it’s not the lender…it’s the taxpayer) Can the government or lenders really provide enough relief for the coming resets of the next several years? Are those who get into fixed 30 years w/ nothing down able to afford their $450K mortgage on a $60K income?
I think the tax relief necessary, if not completely fair. It’s seems reasonable. Only because of the current sham market values. But that’s probably inequitable for other homeowners, since everyone is not going to get the tax relief….hummmm….
I feel like this puts the thumb on those who have worked hard, saved for a down, etc… It’s pretty much like we have to coddle and baby sit these idiot borrowers.
