Comments on: Frank Bill Largely The Same After Hearing http://www.fhaloanpros.com/2008/05/frank-bill-largely-the-same-after-revisions/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 04:56:56 +0000 http://wordpress.org/?v=2.6 By: jdj http://www.fhaloanpros.com/2008/05/frank-bill-largely-the-same-after-revisions/#comment-8313 jdj Wed, 07 May 2008 23:02:34 +0000 http://www.fhaloanpros.com/2008/05/frank-bill-largely-the-same-after-revisions/#comment-8313 One thing that I've never heard the supporters of this and other bailout plans is: What happens if house prices keep falling after the new FHA mortgage is written? The purported reason for the bailout is to get borrowers out of underwater loans. So, if they go back underwater in 6 months or a year, then what? Do it all over again? It is reckless to tell borrowers that simply by dint of the fact that they are underwater that they deserve to be rescued by the government. What do you tell these people when their new loans are underwater? Why wouldn't they bray like lusty animals for another bailout? One thing that I’ve never heard the supporters of this and other bailout plans is: What happens if house prices keep falling after the new FHA mortgage is written?

The purported reason for the bailout is to get borrowers out of underwater loans. So, if they go back underwater in 6 months or a year, then what? Do it all over again?

It is reckless to tell borrowers that simply by dint of the fact that they are underwater that they deserve to be rescued by the government. What do you tell these people when their new loans are underwater? Why wouldn’t they bray like lusty animals for another bailout?

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