“This is a form of economic stimulus that goes to Main Street rather than Wall Street,” says Nicholas Carroll, a journalist on consumer finance and author of Walk Away From Debt for a Better Future. When freed from a mortgage payment, people’s first purchases tend to be necessities, such as socks and underwear, he says.
Homeowners have trimmed interest payments alone by 11% ”” or $67 billion a year ”” from the peak in 2008, according to the Bureau of Economic Analysis (BEA). The savings come equally from grabbing lower interest rates and reducing what’s owed by paying down principal or defaulting on loans.
Consider this, since the government chose to take sides and screw the investors – foreclosures have gone through the roof. Investor properties flooded the market with properties as investors walked away – why not, not the primary home anyway. What if the government refinanced EVERYONE. The new rate would be lower, and the hit to banks would have certainly been less that the bogus stimulus. It is my view, that we would have already turned the corner in housing, all that refinancing cash would have gone back into the economy. Instead the government told investors that they were the cause, and investors said OK, screw you. The result, depressed values due to excessive inventory, depressed neighborhoods, etc. It is not the role of government to CHOOSE sides, just to make the opportunity available for ALL. Default on many mortgages was probably clear when the mortgage was taken out . Irresponsibility has to be shared by the lender for giving high risk [url=http://ameriloansearch.com/installment-loans/bad-credit-installment-loans.html][b]installment loans for bad credit[/b][/url] to people who were trying to live beyond their means and poor financial planning.