I suppose the part where they allow automatic refinancing at current interest rates might be a good one. It obviously could give people a lower rate than what is called for given their risk factors, but if they were going to go bankrupt otherwise, it’s probably better to get some money than none at all.
I don’t even see how you would work a plan that forced lenders to reduce payments to a percentage of income. So unless that is a voluntary plan whereby if the lenders reduce to 38%, THEN the government provides 7% of that so the lenders can be guaranteed some form of payment, that might be workable.
But what I’m guessing they want to do is to reduce the amount OWED to the lender so that the payment drops to 38%. And that I do NOT want. I don’t want ANY PERSON IN THIS COUNTRY who borrowed money to buy a house to now get that money “given back” to them in the form of debt relief, and have them keep their house.
Because that would reward the stupid, the greedy, the ignorant, and those who borrowed money and spent it all on things, at the expense of the prudent people who only borrowed what they could afford, and didn’t take money out of their houses to buy big-screen TV sets.
But I’m sure that is what Obama wants. It’s the “perfect” liberal plan. The only people who benefit are those who are poor and bought “rich people’s” houses. The rich don’t benefit because they won’t qualify since they can still afford their houses.
I think would be called "reverse liar loans".
"Liar loan" was the inductry term for "stated income loans". You didn't have to prove your income, just state what it was. People overstated and got bigger loans than they could afford. (No big deal, prices were rising so fast, they could cash out at a nice profit before getting caught in a bind.)
Now, these same people will be hiding cash income (or grandma's check) that was supposed to help pay the mortgage.
I think your idea has alot of merit and I would be open to adding my name to that Class Action suit. I am from AZ where BHO is currently talking out of both sides of his mouth and I heard a story on our local news today about how stimulus money would be spent to “upgrade” schools here. They focused on two separate ones, both in bad shape, needing alot of remodeling, etc. One school is in a poor district and the other is in a middle-class area...the bottom line at the end of the story was that the “middle-class” school would not receive any of the stimulus money, because the stipulation for the Federal $ is for “poor” neighborhoods only. The middle-class will not exist by the time this yahoo leaves office (hopefully soon!).