Today the prime will drop to 1% (gov. loaning to banks).

Breaking (good) news today..

A new gov. backed program allows you and your mortage co. and/or bank to renegotiate your loan for up to 5 years reduceing your payments by half in many cases..

I think this is great allowing people to keep their homes...

vic

But what after 5 years, isn't this just putting a band-aid on a problem? The bottom line is people still have to have the money to afford a home. Home prices are still way over inflated even after the huge drop in recent months.

Well, gives them time to sell instead of getting foreclosed.

Good point. However, most people are now upside down and will still be in debt when they sell. I'm not sure what this does exactly but delay the pain.

I agree its a band aid, but its a band aid while the wound is bleeding...
Maybe after 5 years folks will realize that owning a home is expensive and they just might cut their credit cards and not buy a new car every year...
BMW's used to be the status symbol but owning your own home has replaced that for the average person...
I thank God i've been blessed enough to not owe a penny on mine and thank him daily for it...
I just hope this will help a lot of people and at least relieve that much stress on families...
Well you know where i'm going with this...just hope it helps a little..

vic