The most recent attempt for a plan to bail out the the average United States mortgage holder is very flawed. They are planning on restructuring your loan if you are more than 3 payments behind on your mortgage. This will benefit the people who are not being responsible withpaying their debts. This bailout will actually encourage people to fall behind on their mortgage and get a restructuring that will save them money. With millions of americans barely holding on to their house when houses around them are dropping in value by 10 to 50 percent, they will now have a good reason to stop paying.
Will this effort actually keep people in their houses which will lower the supply of foreclosures? If that is the intended outcome I am anxiously awaiting to see if that will actually work. This is a big risk to take with many other negative scenarios that could take place. We will have to wait and see.
Chad Miller
Prudential Callhoon Company
Posted by crmhomes 