1) Must have made all payments to date on the existing loan
2) wouldn’t be able to afford the loan if it adjusted
most of these people won’t even pass condition 1
also, lets not forget that these subprime teaser rate low intrest loans are neg amo and at the moment the mortgage balances are higher then the house is worth, in five years the mortgages balances will be even higher.
besides, the mortgage mess is just as bad or worse with Alt A loans.
IMO the goverment should just buy up all the repo homes in CA,AZ,AR and FL for .50 on the dollar, then rent them out and use the income towards paying down there dept!
