Much of the banking drama from the last few weeks can be traced back to bad mortgage bets, making us wish that homeowners were never approved for loans they never could have afforded. Yesterday, a government drafted mortgage aid program launched into action that aims to contain the mortgage crisis from causing more trouble. The $300 billion, three-year initiative aims to allow about 400,000 homeowners to exchange their existing mortgages for more affordable ones, therefore staving off potential foreclosures.
Lenders must first decide if they want to participate in the program as they'd be taking losses on the existing loans, and it's not clear if the so-called "Hope for Homeowners" program will go over well in the industry. A report by the State Foreclosure Prevention Working Group is critical of the initiative and found that in the past year, about one in five loans that were adjusted to give more favorable lending terms became delinquent again. What do you think of the mortgage aid program? Are you hopeful that it will prevent more foreclosures?
i think that i need to hear more about this to understand if i think that it'll help or not. i have a mortgage and i have fears that i'll be stuck not being able to make payments on it when it adjusts and i think that if there was a way for me to get aid, then it might ba good thing. i used to get frustrated when i heard about all the people that were just getting away with these houses that they couldn't afford and there was gov't help to get them out of the bad situation, but knowing where we are now - i guess you have to do what you can, and if there is aid - then it's a necessary evil.
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