Originally posted by MattyX:
It's a measure to help the borrowers AND the lenders. It's better for the economy if the housing market is not flooded with foreclosures. It's better for the banks to not have to sell houses because they'd rather sit back and collect mortgage payments. They'd probably lose lots of money on any sales they did manage to close, anyway. Its better for borrowers because they can keep their homes.
I don't see a downside to this as long as it is a stopgap measure and not a permanent "solution." Lotsa folks hate to see anyone else get a good deal. It doesn't affect you, so quit hatin.
The downside is that people like BurghPath get fucked as the ones who have subprimes but aren't in any trouble with their mortgage (though they may be stressed financially) get no help. They still have to shoulder the burden. Only those who are behind, or in default of their subprime loan are going to qualify for this reprieve.... It's bullshit.
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