Free Rent For The Unemployed
Starting in July the Federal Goverment will begin pressuring FHA backed mortgage companies to increase the length of time that mortgage companies give unemployed borrowers to get back on their feed. The unemployment mortgage assistance program being promoted by the Obama administration is going to suspend the payment requirement up to 12 months for those borrowers who are unemployed. During this period the borrower will still owe the full balance of the mortgage and any interest but they will be required to make no payments. For those out of a job this is going to be a welcome relief but for the taxpayer it may leave them scratching their heads. Certainly its a nice thing to do but anytime the government interferes with private business and forces them to do something that causes them to lose money the ones who pay are are those who are making thier mortgage payments on time and many times the taxpayer. Why? Well to get the mortgage company to suspend payments for 12 months it will likley offer these companies some sort of payment or tax relief. That lost revenue has to come from somewhere and it will come from those who are working hard, paying taxes and paying their mortgage on time. The suspension of foreclosures will also artifically inflate the value of homes delaying the bottom everyone is looking for in Real Estate. The opposite arguement is that this program will let those unemployed persons get back on their feet and pay their mortgage but data shows that suspending foreclosure only delays the inevitable and gives borrowers a free ride.
posted by beer234 @ 7:44 AM
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