READ THE FINE PRINT and consider the timing, anything said 5 days before an election cannot be relied upon.
The fine print that I read was principal reductions for a 5 year period using the fdic model. I’ve looked at that model in depth and it’s no bargain for the FB, certainly not something that you should hurry to jump into you if you are safely renting and it will be paid for out of the 700bln that Paulson has access to.
It’s nothing more than a cloaked interest only loan, it never builds wealth or equity, the reduction is not free, it is a lien on the house, it must be repaid and in 5 years they will lose their house but it spreads it out. Only fully doc’d will qualify and .38 of their income will be used as the payment, it won’t help most Southern Californians. I could bore you with all the details but it is more fun to see everyone go all nutso thinking their diligence will not be rewarded. Just Chill, we will see the proposal in a few days and we can punch holes in it then.
