thoughts on Bush mortgage bailout?

[gonebroke2]

http://www.msnbc.msn.com/id/20524454/

I think this is a bunch of BS. Let the greedy lenders and the Fed who encouraged these type of loans pay for it. Or just let the lying borrowers lose their homes and end up on the streets.

Now they want mortgage reforms after the party is over? I guess thats what happens when you live in a consumption based economy that needed equity withdrawals to keep this economy afloat.

[hawk59]

Doesn't seem like too big a deal, if any money is given to bail anyone out I am moving to a bunker and refusing to pay taxes ever again.

[Uglyowl]

Everything I have read, it will just delay the crash. This isn't going to be pretty.

[tolbiny]

I'm unsure what the plan is supposed to do, it allows people to refinance their homes easier right and to have those refinances insured by a federal agency? The first though that strikes my mind is that when these people do refinance and still are unable to pay back the loan then the mortgage company will be bailed out by the gov and the person is out the home. It sounds like the biggest scam ever.

['Chair]

i think people and companies getting destroyed here do not deserve a bailout. darwinism...I hope they starve to death on the street. But nooooooooo, that's not American or humane...

edit: if you can't afford a house, rent or MOVE out of southern california.

[gonebroke2]

[ QUOTE ]
Everything I have read, it will just delay the crash. This isn't going to be pretty.

[/ QUOTE ]

I agree. They are just delaying the inevitable. Bush and Bernanke can promise the world, but that is not going to stop the implosion of the mutli-trillion dollar derivative market.

[superadvisor]

Still doesn't help people who have stated incomes, rental properties (flippers), people with bad credit. Hopefully this only helps the smallest percentage of people who don't deserve it.

[haakee]

[ QUOTE ]
Still doesn't help people who have stated incomes, rental properties (flippers), people with bad credit. Hopefully this only helps the smallest percentage of people who don't deserve it.

[/ QUOTE ]

I heard on CNN that it would only help approximately 4% of the 2 million homeowners who are "having trouble" paying their mortgages.

[maxtower]

It doesn't look like the proposal has much in it that would alter the fundamentals of real estate valuations. As long as the rent/price equation is out of whack, prices will have to come down. This may just delay the correction a little.

[Jcrew]

The tax liability for debt forgiveness may accelerate downward prices as it motivates owners to aggressively persue short sales with their lenders. However a major stumbling block is that many of the loans are owned by MBS investors which might make negotiating a short sale tricky.