CNBC's Diana Olick reported today that President Obama's plan to bail out "responsible homeowners" will provide incentives for lenders to forgive secondary liens---including home equity loans.
The proposal posted on the Treasury web site provides that "the program will include additional incentives to extinguish second liens on loans modified under the program in order to reduce the overall indebtedness of the borrower and improve loan performance." Page 5, paragraph vi.
So, in other words, the Obama administration has crafted a plan to assist responsible homeowners---who just happened to suck money out of their properties like ATMs. Since they are unable to pay that money back, it looks like the American taxpayers will foot the bill. Does that mean we also get to use the stuff they purchased with our money?
Wednesday, March 4, 2009
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