There is some logic to that. Helping people who are broke does almost nothing. Someone who cannot make a $900 a month house payment is unlikely to be able to handle one at $600. Many of the people in question are out of work or have low paying jobs. Many have considerable consumer debt which makes them like almost every other citizen.
The federal government cannot halt the decline in the housing market by resetting terms for homeowners who won’t benefit from the process.
Until the issues of having too many homes which are worth less than there mortgages and the rising rate of unemployment is addressed, the government is better off buying the homes and letting their current residents stay in them. By:Douglas A. McIntyre
