(Community Matters) Since last Spring I’ve thought mortgagees should be helped by the government, arguing that someone was going to be bailed out and it might as well be individuals rather than financial institutions this time. Well, the latter have since received trillions, and we’re just getting to the individuals. Had we provided mortgage relief early on, our economic catastrophy might not be so deep.
I agree with President Obama’s intention to focus on the “responsible” borrowers and acknowledge that it will be a wide net that includes some irresponsible ones as well. Appears we are deliberately not including borrowers with the capacity to pay but who now find themselves underwater in home values. I’m torn on this one.
Of course they should continue to pay. And, of course we know given that millions are now in this position, millions will walk without some sort of relief. Again, there will be a bailout for this economic fallout as well. Shouldn’t we try to head it off and spend a fraction of the eventual monies by forgiving the balances over current values with a recapture provision from eventual home sales? Just a strawman and still toying with the overall thought.
Community Matters 