[Mashood]

The problem with these refinances would be that the market value of these homes has dropped and is below the principle owed. What will FHA refinance...140% LTV. The bigger question would be: why would the borrower want to?????

[goldstategop]

Well letting everything default would lower every one's property values as well as drive the economy into a recession. Not a good idea. FHA loans have few defaults and just raising the amount that can be borrowed is something that ought to have been done last year. I'm not talking about bailing out investors or speculators. But its a good idea to help working class folks keep their homes if we can.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus