[TeleStraightShooter]

From what I gather the plan is to lower the interest rate of the mortgage in question to achieve 31% of income ratio.

On average the lender would chip in about 1% (which most are willing to do now) and YOU {via future taxes fronted by Chinese $$$ now} get to pay the mortgage company about $8,000 to cover the remaining 2-3% to arrive @ the 31% of income ratio.

[jennyjenny]

I'm guessing there is no way to get the vast majority of these people to 31% without extending their loan to 50+ years. And, I'm not sure it would matter any way because most of these people have demonstrated they have a spending problem. You help them out with this, they'll look at it as extra cash to borrow/spend on TV’s, vacations, fancy cell phones, a wii, etc.

[kenavi]

From what I gather the plan is to lower the interest rate of the mortgage in question to achieve 31% of income ratio.

On average the lender would chip in about 1% (which most are willing to do now) and YOU {via future taxes fronted by Chinese $$$ now} get to pay the mortgage company about $8,000 to cover the remaining 2-3% to arrive @ the 31% of income ratio.

Banks would be giving better terms on defaulted mortgages even without this gov't subsidy, they just can't afford to foreclose on so many homes when the market is so illiquid. All they needed to do this was some certainty on what the gov't's policies are.