Wednesday, February 18, 2009

A good plan, except...

I just watched the President outline his mortgage plan. I think it has two of the three key elements necessary: it will get people's loan balance below the value of their houses, and it will reduce payments to a sustainable level. What is missing (or at least I think it is missing), is a clawback provision for those homeowners who get a subsidized loan and then profit on sale later. I think this is critical for fairness. But perhaps I have just not digested the details of the plan yet.

It was so refreshing to see a President explain things so well, though...

3 comments:

Anonymous said...

I didnt see an explicit provision to reduve loan balance just payments.

Anonymous said...

I too thought Barack did a great job of explaining things - We all benefit from bailing out the folks who borrowed beyond their means.

www.TheTorontoRealEstate.com said...

I totally agree and applaud Barack for the bold step , I think we should give him a credit for comming up with this reduced interest rates for home owners.
When the going gets tough.....