My father was a kind-hearted man. He worked for forty years of his life at jobs he didn’t really like so that he and my mother could raise five (wonderful) children in a nice, safe neighborhood. They lived 28-years in the same house on which they paid their mortgage – month after month after month. My father lived quietly, paid his taxes on time, and, mostly, just hoped for the best.
Like him, millions of other people get up every morning, go to work, pay their bills, and mostly just hope for the best.
You know what? If my father was still alive and woke up this morning and read about this proposal, he’d have a heart attack, keel over, and die.
And, what are your thoughts?
Prodded in part by some of the nation’s biggest banks, the Bush administration and Congress are considering costly new proposals for the government to rescue hundreds of thousands of homeowners whose mortgages are higher than the value of their houses.
… [W]ith the current efforts to arrest the housing collapse so far bearing little fruit, Washington is being forced to explore new ideas, among them the idea of a federal mortgage guarantee for troubled borrowers …
… [P]olicy makers are listening to proposals from industry and community groups to use government funds to purchase and refinance billions of dollars in mortgages now in danger of default.
In Washington, it will be difficult to engineer a bailout similar to the one for savings and loan companies in the early 1990s, because Democrats and Republicans alike cringe at the very word bailout and fear a backlash by people who never became overextended.
But with millions of homeowners already underwater and the prospect that millions more may face the same situation, Democrats and Republicans alike are scrambling for ideas to keep people from simply walking away from their homes and to help those struggling to pay their bills.
Source: Rescues for Homeowners in Debt Weighed – By Edmund L Andrews and Louis Uchitelle, The New York Times