"History is a wonderful thing, if only it was true"

Saturday, September 04, 2010

Seems that they don't learn

Oh good, raise my taxes to cover those who bought more than they could afford ...

White House to Deploy Broader Mortgage Aid - WSJ.com:

"The Obama administration on Tuesday will launch its most ambitious effort at reducing mortgage balances for homeowners who owe more than their homes are worth.

Officials say between 500,000 and 1.5 million so-called underwater loans could be modified through the program, the first initiative to target homeowners who are current on their mortgage payments but are at risk of default because they have no equity in their homes. Some experts are warning, however, that the same knots that tied up prior initiatives could do so again.

Under the new 'short refinance' program, banks and other creditors that write down mortgages to less than the value of the property can essentially hand off the reduced loan to the government. The process involves refinancing borrowers into loans backed by the Federal Housing Administration."

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