President Obama is going to let Fannie Mae and Freddie Mac refinance loans that are worth up to 125% of the collateral's value in an attempt to stem the tide of foreclosures according to an article on Bloomberg.
Other than sticking it to the third of the population who rents their homes in an effort to bail out the 10% who are over extended, President Obama tosses empathy under the bus for renters to save the fools who willingly over extended themselves.
Can anyone explain the logic in that? Anybody ... Bueller ... Bueller? Has anyone seen Ferris Bueller?
1 comment:
Hey, if it makes them full recourse, then that is ultimately more $$$ for the govt. If I were that far underwater, I couldn't imagine wanting to take out that kind of loan knowing it'll be a LONG time to break even. But yes, the renters are the ones that always get f*cked when they roll out these gimmicks.
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