what gets me is that a lot of the people walking away from loans are investors... homeowners have an incentive to keep paying regardless because otherwise they would pay rent.
On 3/8/08, J.J. Merrick <[EMAIL PROTECTED]> wrote: > Um, why should I foot the bill for idiots that loaned people who > could'nt afford a house money? What about us who thought "Hmm you know > I should save up for 20% down, pay down my debts so I have a good > record and pay my rent on time" instead of getting a house just > because everyone else was telling me to buy buy buy even if you can't > really afford it. > > > How about these people lose their houses because they never should of > had them in the first place? > > /opinion > > > J.J. > > > > On 3/8/08, Gruss Gott <[EMAIL PROTECTED]> wrote: > > The federal government would lend each participant 20% of that > > individual's current mortgage, with a 15-year payback period and an > > adjustable interest rate based on what the government pays on two-year > > Treasury debt (now just 1.6%). The loan proceeds would immediately > > reduce the borrower's primary mortgage, cutting interest and principal > > payments by 20%. Participation in the program would be voluntary and > > participants could prepay the government loan at any time. > > > > The legislation creating these loans would stipulate that the interest > > payments would be, like mortgage interest, tax deductible. Individuals > > who accept the government loan would be precluded from increasing the > > value of their existing mortgage debt. The legislation would also > > provide that the government must be repaid before any creditor other > > than the mortgage lenders. > > > > Although individuals who accept the loan would not be lowering their > > total debt, they would pay less in total interest. In exchange for > > that reduction in interest, they would decrease the amount of the debt > > that they can escape by defaulting on their mortgage. The debt to the > > government would still have to be paid, even if they default on their > > mortgage. > > > > Participation will therefore not be attractive to those whose > > mortgages that already exceed the value of their homes. But for the > > vast majority of other homeowners, the loan-substitution program would > > provide an attractive opportunity. > > > > -- > > "A little rudeness and disrespect can elevate a meaningless > > interaction to a battle of wills and add drama to an otherwise dull > > day." > > > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:255999 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
