mister d

Obama's Foreclosure Plan: A Closer Look

The housing market is to messed up for any plan to fix. Period. The only choice is to allow foreclosures to run their course and hopefully reach a bottom before even the americans who are fortunate enough to be able to afford their mortgages in these trying times smarten up and see the futility in trying to maintain a house that may never recoup its value. It is at this point that all americans, even you honerable hard working citizens will begin to question the financial feasibility of homeownership based on 2005 terms and conditions.

The one thing no one wants to admit or even recognize, especially rick santelli, is the basic principles of asset backed lending. The borrower agreed to pay x dollars per month for typically 30 years. In most states people are not defaultng on contracts as many are stating they are simply excercising an option within the contract to return the asset in leau of payment. Who is responsible for making the wiser of the two decisions, the borrower or the lender, is the real question.

Taking into consideration all the factors that surround a mortgage loan it would appear to be common sense to me. The lenders bear the burden of responsibility for making wise lending decisions as they are the ones who bear the greater of the consequences as demonstrated by todays current market.