An Example of Massive Government Waste.

[Charles_Main]

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

Many banks and other observers are now saying, because of poor wording in this act, that many people who were not behind on their mortgages are now in fact deliberately getting behind. so they can then have the Government intercede, and force the mortgage company to renegotiate their loan.

This is just one example where a good idea, is abused, and will cause massive waste, simply because our representatives rush things through with out thinking them through completely.

They have created a reason for people not to pay their mortgages.

If you owe 95% or more of the value of your home for example, as a working Couple. Today you can have one of you quit your job, deliberately get 3 months behind on your mortgage, and then apply to have the government negotiate your mortgage down to 33% of your new lower income. Then your spouse goes back to work, and walla you have a much lower interest rate, and possibly even a lowered principle, all because you took advantage of an act meant for those really in need.

This law encourages poor behavior, and it is just one example of how government programs are and will be massively abused.

AS will the programs in the new Stimulus. This is a shining example of why Conservatives think Government involvement in anything is a bad idea.

 

[wimpy77]

what right winged website did you get this from?

 

[Charles_Main]

what right winged website did you get this from?

Actually it is what some banks have told congress.

But good try.

Also Listen to money line, he will actually tell you if owe 95% or more of the value of your home, and are still paying, you are a fool not to take advantage of this law.

I do not even have a mortgage as I own my home, however I still got a call the other day from a computer, informing me of my right to get Government help to renegotiate my mortgage if I need it.

They are actually calling people up and soliciting people to use this wasteful program.

 

[Charles_Main]

Mortgage modification nation: Who really deserves a cheaper mortgage? | L.A. Land | Los Angeles Times

Reporter David Streitfeld explores the same thorny issue in Friday's New York Times: How do you determine who really deserves a loan modification that reduces their mortgage payment? How do you prevent people from deliberately defaulting their way into a lower payment?

The answer is there is not a way in this act to make sure people are not deliberately Defaulting there way into a lower payment.

Two cents: This story is a reminder of a key factor in the housing bubble that started all this: The American consumer shares and spreads business tricks and trends at lightning speed; the American government, by contrast, is very slow to catch on. So, during the bubble, consumers quickly learned from each other how to buy real estate with no money down, how to suck the equity out of their homes and spend it, how to squeeze into a big house by paying a tiny teaser rate. There's little evidence government regulators learn as quickly -- during the bubble, they simply didn't notice the degree to which consumers had embraced risky, and ultimately disastrous, borrowing.

--Peter Viles

And now there is little reason to believe either that People are not abusing this act, or that the government will do anything about them.