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So what’s better for the mortgage company? Freeze the interest rates and/or refinance and have a chance of keeping cash flow from the loan going or end up stuck with an overpriced piece of property they can’t sell or will sell at a loss anyway? Sounds like an overall win-win.

This is what I'm complaining about. Everybody is just assuming and taking it on faith that this is better for the institution holding the mortgage but I have seen absolutely no numbers to back this up.

The instututions holding these mortgages didn't come up with this scheme. If Paulson, Clinton, Mozillo, Rubin, et al say this is better for the institutions then let's see the numbers that show us why unabashed socialism is once again the fallback position.

BTW here is a summary of the program. The three-percenters are in “Segment 2” in the “34-page document” link. (”Segment 1” is/are people who can probably refinance on their own; “Segment 3” are people who are probably screwed.) In other words, “Segment 2” is what this thing is all about.

http://loanworkout.org/2007/12/07/american-securitization-forum-outlinines-procedures-for-servicers-to-follow-in-streamlining-loan-modifications/

Note his ominously abrupt end to his summary:

“I am going to stop this post here because I am pretty upset with this plan. I had reported yesterday that I am cautiously optimistic about this new Hope Now deal and that the devil is in the details.”

“The devil has reared its ugly, horny head in this ASF guide.”

“I called this a “big” step forward yesterday by Paulson and Hope Now. I’m going to recant that statement and say, “This is an ity bitty baby step forward and it looks like many homeowners and housing counselors will continue the “same” battle they have been fighting with mortgage servicers before this new plan was announced.”

I’ll be very interested to see how this plays out come Monday.

"The instututions holding these mortgages didn't come up with this scheme. If Paulson, Clinton, Mozillo, Rubin, et al say this is better for the institutions then let's see the numbers that show us why unabashed socialism is once again the fallback position."

The numbers have been all over the web the last 6 months or more. "Unabashed socialism"??? On the contrary, this is capitalism at it's absolute best. Entrepreneurs doing what they have to do to keep the cash flow going without giving away the farm. The people you name have absolutely nothing to do with this. And, more than anything else, this is all about preserving the good faith and confidence foreign investors have in US investments. Without foreign investors this country will dry up and everyone knows it.