I just read this story in the Washington Business Journal. The State of Maryland has decided to bail out some troubled borrowers with interest free loans to catch them up on the past due mortgage payments. This "bridge to hope" sounds alot like mortgage welfare. Giving someone 3 months of payments on a home they can't afford, will result in a delay of the foreclosure by those 3 months. I can't really see any situation other than a temporary job loss of three months (isn't that why you save money and have unemployment insurance?) that could justify handing someone who is about to lose their home a "get out of jail for three more months" card. This program will cost the taxpayers of Maryland some serious cash and put even more strain on the state budget.

If the state was really concerned about keeping people in their homes, and they just had to spend some of the taxpayers' money, they could subsidize investors to come in and purchase these properties, with the understanding that the current home-owners could stay and pay rent. At least then the borrowers would have a reduced monthly payment and could avoid the expense of moving.

Let's hope that this type of "help" doesn't catch on in Alabama. I don't want my state tax dollars going to these types of programs.