You remember Peggy the Moocher, she is the sister who voted for Obama because she thought he was going to pay her mortgage.
Well Peggy will be sitting pretty very soon.
From The Washington Post: The Obama administration plans to overhaul how it is tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.
Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower's income, which would typically be the amount of unemployment insurance, for three to six months. In some cases, administration officials said, a lender could allow a borrower to skip payments altogether.
[…] Officials said the new initiatives will take effect over the next six months and be funded out of $50 billion previously allocated for foreclosure relief in the emergency bailout program for the financial system. No new taxpayer funds will be needed, the officials said.
I have a better idea, take the $50 billion and pay down the deficit with it. Then institute my time tested plan called “The Moving To More Affordable Housing Program”. The details of the program are pretty straightforward; you pack up all your crap and move to a smaller more affordable place. It even comes with a secondary option; I call it “The Family and Friends Option”. Family and friends who love and care about you, makes their homes available to you for free on a short-term basis.
The best part about The Moving To More Affordable Housing Program is that it’s FREE! Even Peggy can try it, though I kind of think she will opt for the Family and Friends Option.
Via: The Washington Post