This time we're attacking second mortgage holders and asking them to give the embattled mortgage holders (morons) free money by abdicating their rights to principal owed them.
Two things - first of all, how did these guys get second mortgages and what where they used for? I'm betting you look in the garages and see new cars. Look in the living rooms and see big screen T.V.'s and I'm bettin' that most of this was financed with easy-to-get home equity.
Second - the telling sentence in the article is this one:
"For some borrowers, even a reduced payment is too onerous, leading to redefault."
The point is that in many cases, unless you reduce the loan balance to near zero these people can't afford the loans. It's because the majority of them are unemployed. If the feds wanna help out, they need to be looking at ways to create jobs.
"For some borrowers, even a reduced payment is too onerous, leading to redefault."
- Editorial - The Year in Foreclosures - NYTimes.com (view on Google Sidewiki)
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