Despite the fact the loan modifications aren't exactly working and evidence that the Obama administration's last efforts to stem the hemorrhaging haven't been working very well. In fact it may have done more harm than good.
U.S. Plans Big Expansion in Effort to Aid Homeowners
Many of these loans have been bundled together and sold to investors. Under the new program, the investors would have to swallow losses, but would probably be assured of getting more in the long run than if the borrowers went into foreclosure. The F.H.A. would insure the new loans against the risk of default. The borrower would once again have a reason to make payments instead of walking away from a property.
Many details of the administration’s plan remained unclear Thursday night, including the precise scope of the new program and the number of homeowners who might be likely to qualify.
One administration official cautioned that the investors might not be willing to volunteer any loans from borrowers that seemed solvent. That could set up a battle between borrowers and investors.
This much was clear, however: the plan, if successful, could put taxpayers at increased risk. If many additional borrowers move into F.H.A. loans, a renewed downturn in the housing market could send that government agency into the red.
We are in a vortex of s**t which now includes Social Security which arrived earlier than scheduled.
I am trying to write something witty, but I can't. All I see is grin and bear it.