From Peter Goodman at the New York Times: Treasury Weighs Fixes to a Program to Fend Off Foreclosures
The administration faces growing pressure to do less for banks and more for households struggling with double digit unemployment.
The changes by the Treasury Department are expected to include greater assistance for homeowners no longer able to make mortgage payments because their paychecks have shrunk. The Treasury is still debating the method, looking at either direct cash assistance or a grace period in which borrowers could postpone payments. That component may not be announced next week, but would follow soon after.
The changes to be introduced next week are unlikely to address what has emerged to a potent factor propelling a wave of foreclosures: the roughly 15 million borrowers are said to be underwater.
Banks must ultimately forgive loan balances to restore equity to underwater borrowers.
I agree with this as more and more people feel they are throwing money into a depreciating asset and have no hope of recovering. Nothing seems to be working and we need a change. Remember the phrase CHANGE that we heard so much last year. Well, let's see some change. If it's broke, fix it.
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