What about all of the people who refinanced with a large cash-out and then spent it on high priced toys making them unable to keep up with the payments? Are they going to have their principal reduced?
I can’t imagine that the Govt can have any oversight, transparency or accountabiity on this. This is just tooooo complicated and too massive. Obama is in dream land with this idea of co-operation with Freddie & Fannie. There is not enough money in the whole bailout amount to help this situation.
I can’t believe they are going to withold the bailout money from the mortgagers unless they “adjust” all of these foreclosed mortgages. They will probably do it for very few homes and then set these examples up as what is being done all around the US.