billw wrote:There are many ways to solve this problem without rewarding banks for making stupid loans or people living beyond their means. What I'd like to see the government do instead of just giving banks tons of money and hoping they 'do the right thing' is set up a program similar to what is currently in place for student loans. If you lose a job or take a pay cut you can put your loan in forbearance. This postpones payment for a year without harming your credit. It doesn't forgive the loans or absolve you of your interest obligations, it just gives people some breathing room until they can get on their feet again. After a year the student loan company can modify your loan repayment schedule, stretching out the amount of payback time so the monthly payment is affordable. How many people that just lost a job would jump on that chance.
Forbearance for mortgages, I like it, and would accept it if available.