Mortgage modification is the least the banks could do for us

Converting the predatory loans to tradional loans was a No Brainer and advocated by many (including yours truly) several months ago in the earliest stage of this meltdown. But the greed of of the lending industry and their pathetic pleads for a taxpayer bailout to free them of their own stupidity woudln't allow them to use common sense.

That said, as long as we're rewarding greedy financiers and irresponsible homeowners then something should be done for responsible taxpaying citizens -- those of us who pay our mortgages on time every month and don't live off the backs of taxpayers. Our banks and the Fed should reduce interest rates on our existing loans without all the paperwork hassles and fees and we deserve more of a tax writeoff on our interest expenses.

How about doing the things to make America great, like rewarding responsible behavior and discouraging irresponsible behavior?

I reported appraisal fraud to the Department of Real Estate and they took no action as is typical of most "comsumer protection" agencies. Try writing to the Bar. This "crisis" was crafted by its benefactors and "resolved " by the same, for Benefit of the same. A good deal of the benefit will go the speculators and frauds and very little to deserving families.

While it is very nice that there will be a bailout for those folks who may lose there homes, what do the rest of us get out of this? What about those of us who were smart enough to finance what we could afford or those of us who rent. Seems like this bailout is a nice thing for those who have been irresponsible, the banks and homeowners who got in over their heads, but what do the rest of us get besides are tax money being used on something that was not our fault.

The author writes mortgage modification is a great deal because the banks will pay for the mortgage bailout and not the taxpayer-hello, who does he think is bailing out the banks at this time-the taxpayer. Lets not keep rewarding bad behavior like many who used their equity in their homes like an atm card. They deserve what they get.

This plan supposedly reduces the defaultor's mortgage payment to equate to 34% of their income...doesn't say if that is gross or net income!

Ostensibly, that could translate into a person earning 30,000K/year getting a modified loan payment of only $850/month! What if they paid $800K for their house????

And how long does the modification last? If they get a break for one or two years, does that mean they will be able to afford that house when the modification expires?

If the principal is permanently reduced, it will cause riots in the neighborhoods, reduce property values, and huge property tax problems.

Too many unanswered questions...it sounds like it's just going to delay the inevitable!

All in all...this sounds like a disaster waiting to happen!

What about people that don't have mortgages. We paid off our mortgage and live w/n our means. Maybe we should have gotten the McMansion and then the gov could have given us a free house. It is just crazy if the gov bails out the irresponsible home buyers. What is the gov going to do for me - hey they are talking about giving irresponsible people some freebies where is mine. Maybe I should quickly go find a McMansion so the gov can bail me out too.

It is good that these people are given the opportunity to stay in their homes.Now comes the time for truthful negotations. The buyers agreed to pay $500,000 for the house , but only are making the payments on a $250,000 house. Both parties need to agree to place a silent second, or balloon payment, for the balance on the renegotiated contract. The buyer stays in their dream house for 30 years, the mortgage company does not get the profit until the second or balloon payment comes into play, but nobody loses in the long run.

Why should low income minorities who NEVER should have been allowed to get loans for $400K be allowed to get Gov. subsidies??? Why should they be rewarded for stupidity???

We should have let the entire subprime crash play out and let the chips fall where they may! This is going to cost us 10x more in the long run, and the problems will NOT be solved!

The crooks need to be taught a lesson...and so do the stupid, ignorant minorities who don't know how to do simple math! If you make $30K/year...you can't afford a $400K mortgage! What's there not to understand????

It's much more complicated than that. It's not just the people who signed bad loans that are in trouble right now, it's all of us. Every facet of our economy is in trouble. Some of us are loosing our businesses because of lack of customers, others are loosing their jobs, some have lost our investments and our savings.

This is a serious threat to all of us and it's going to get worse before it gets better. Helping just those people that signed bad loans is NOT the answer. What about the rest of us who are struggling because of the roll down effect?

When I look at propositions that will raise our taxes, it makes me cringe! The last thing any of us need right now is higher taxes! Lower our taxes during this time of crisis, don't raise them!

Knee jerk or partial fixes aren't going to help us. Those who are suffering, loosing our businesses and jobs through no fault of our own NEED HELP TOO!

How about renegotiating all bank loans to 1% above what the banks are borrowing at from the fed. Mortgage rates are still around 6%. Look at the rates credit card companies are charging. Better to reduce rates and get something, than loose all to default.