I don't know if anyone else saw this article that was on the internet http://www.msnbc.msn.com/id/27311840/
but these are words that I have preaching for sometime now.
I saw first hand how the mortgage mess happened...I was there, saw it happening and saw it fall.
I think that the only way for the mortgage mess to stop bleeding is for all lenders to reduce the interest rate on every one's loans to a low fixed rate...say 4 or 5 per cent. I know that this is going to cause them to lose alot of money in interest, but it will stop the massive amounts of foreclosures across the board.
I don't think that this reduction should only be made to those borrowers in trouble, I think it should be made on ALL loans, across the board...with every one's values dropping it is too easy for alot of people to walk away from their homes, this would give everyone a more affordable payment and the incentive to stay in their homes.
When values come up again, and they will...then everyone will begin to refinance again to pull money out. Unfortunately that is the American way now, since it is the only tax deduction for most of us. Most people will never accomplish paying their mortgage off, and never really work towards that.
It always reminds me of the bumper sticker...he who dies with the most toys wins...that pretty much sums up our society, we want what everyone else has only newer, bigger and nicer. And we have all learned the last few years that all you have to do is tap into the gold mine that you live in...your home.