Expanding Help for Home Buyers

Any lender that borrowed taxpayer money should be OBLIGATED to modify loans for loyal, responsible customers. Anyone with a mortgage in good standing with, say, CITI, should be able to earn the new low rates that are available. They should not have to miss payments or suffer a credit hit to then earn assistance. This would make people feel better about their underwater homes and free up money that would help either pay off existing debt or be put to use through new purchases - boosting the economy. The thought that CITI gets taxpayer money and then refuses to assist homeowners is flat wrong. Worse, CITI can use taxpayer funds to offer loans AT INTEREST back to the taxpayer! This is absurd. Imagine giving your friend $100 only to have your friend do you the kindness of offering you $100 back, but at 6% interest? This is crazy! The banks b*tch and moan about people walking away without doing anything to meet them half-way and possibly keep them in the house. What is worse, giving a person a new 4.5% mortgage and keeping them in the house? Or letting them walk away. Apparently the bank prefers the latter and the quick, if lesser, cash that comes with it.

JDW of GA 9:19AM November 10, 2009