Do you want to pay for your neighbor’s swimming pool?
Politics, Bailout News, The Economy, Real Estate March 6th, 2009
Diana Olick from CNBC found this juicy piece buried in the pages of Obama’s housing plan:
While eligibly loan modifications will not require any participation by second lien holders, the program will include additional incentives to extinguish second liens on loans modified under the program in order to reduce the overall indebtedness of the borrower and improve loan performance. Servicers will be eligible to receive compensation when they contact second lien holders and extinguish valid junior liens. Servicers will be reimbursed for the release according to the specified schedule, and will also receive an extra $250 for obtaining a release of a valid second lien.
This is absolutely ridiculous!!! We’re not only paying for the people who bought more house than they could afford, but we are also paying for the HELOC they took out to buy a new car, a pool, or take trips?
Please call the White House and let them know that this is very wrong and it only encourages more irresponsible behavior.
