Thursday, October 23, 2008

And here we go again

To recap:

$300B mortgage bailout bill from July

$700B bailout bill from Sept

$150B stimulus package from April

Result: foreclosures are up 71% this quarter

Solution: another bailout of course. The new scheme involves the FDIC bailing out idiots who cant make their payments with modified mortgage terms. Here is the funny part though:

After the FDIC became conservator of mortgage lender IndyMac this summer, Bair instituted a loan modification process for loans that were 60 days or more past due and which IndyMac either owned directly or serviced. About two-thirds of the 60,000 loans under IndyMac's umbrella are considered potentially eligible for the new program, she said.

Through this week, IndyMac Federal has mailed more than 15,000 modification proposals to borrowers and has called many thousands more in continuing efforts to help avoid unnecessary foreclosures," Bair said. So far, more than 3,500 have accepted the offers

3500 out of 15,000? Wow talk about successfull programs!! People realize that it's better to just walk away than get saddled with some mortgage on a house that will never get back to the value they bought it at. These modifications usually mean extending the mortgages out to 40 or even 50 years to lower the payment. Only the stupidest of stupid people would agree to such a scheme. But the government being the government will keep coming up with stupid ways to waste my money.

Put yourself in the shoes of one of these morons. Option A is walk away and never think about the house again. Option B is sign up for a debt trap where you will be paying a mortgage in the year 2058. And this for a house that was built in a few days by a crew of illegal aliens, as most houses built this decade were. Only an inept government employee could possibly see Option B as beneficial.

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