Housing compromise

A compromise solution to keep foreclosures from getting any further out of hand:

Congressional aides say the Bush administration has hammered out an agreement with industry to freeze interest rates for certain subprime mortgages for five years in an effort to combat a soaring tide of foreclosures.
It's an idea. It's not perfect. But it probably helps some people.

There's always a question with these sorts of things whether you are rewarding people who perhaps should be punished (people, for example, who simply bought too much house). But no solution is perfect, and this seems like it isn't the worst thing they could have done.

holly commented:
I like the solution that Countrywide Mortage came up with. They mainly said 'screw this, we are losing money, people are losing houses, this sucks for us.' They then called several of their subprime mortage holders, and renegotiated them into more stable mortages. A few months ago it was more than 17000 people who had changed over. I understand that they were looking out for their own buisness, but they took initative and people benefited too. It apparently has kept them out of the red in a big way. Guess personal interest by corporations can sometimes work out for everyone (I can't belive I just wrote that...)
on Thu Dec 6 10:20:48 2007

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