Bob K.

The Government's Subprime 'Bailout' Plan Will Kill the Housing Market

I am sorry to say but the author is correct, these "saved borrowers" are far better off defaulting and renting through their negative credit period of seven years than being stuck in a negative amortized loan. Meaning the price of their homes continue to fall as their payments remain with little upside of an equity build. Do the math. The prime brokers set up an ingenious trap.