At the Bank of America Investment conference this summer, Countrywide itself declared:
Causes of Foreclosure:
58.3% Curtailment of income (Job Loss)
13.2% Illness/Medical (unpredictable)
8.4% Divorce
6.1% Neg Cash flow / can't sell (or can't afford to sell low enough)
5.5% Low regard for property ownership (idiots who got in with no investment)
3.6% Death / Estate Issues
1.4% Payment adjustment
3.5% Other
This plan and all the other politicians plans are like putting lipstick on a pig...the pig will always be a pig! You can't change it. If the government would just friggin' stay out of it we might actually make our way through this nightmare.
Sure, giving people hope is a good thing, but this plan gives false hope and it won't help the dingbats who are really screwed that aren't in sub-prime loans. The Alt-A crowd, the Neg-AM crowd, and the Heloc Crowd. This will do nothing to stop the unwinding, it will only make it worse because investors who buy the CDO's and ABS's will say "NO MORE" will we buy paper that will not produce the yields that were promised.
How would you like your retirement investments ravaged by this rate freeze plan? This plan is so wacked it's unbelievable!
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