Which came first, the chicken or the egg?

Or in this case, the foreclosure or the modification leading to default?

From the WaPo: Obama readies steps to fight foreclosures, particularly for unemployed.

Why worry about the economy and the lack of jobs, right?  Two years of unemployment lined up, free healthcare, and now–you don’t have to pay for your house, either?

How inconvenient that this comes out the same day: over half of the folks who have “modified” their mortgages with government help have still ended up in default.   Why bother making house payments–how passé–when that free Obama money will make it like Christmas for everyone.

From Bloomberg:

Modifications are “clearly not working well and it’s not a surprise,” said Sam Khater, a senior economist at First American CoreLogic in Tysons Corner, Virginia. “It’s pointless to rewrite these loans because they’re underwater.”

So what does Obama do? Double-down on something not working, of course:

The Obama administration plans to overhaul how it is tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.

Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower’s income, which would typically be the amount of unemployment insurance, for three to six months. In some cases, administration officials said, a lender could allow a borrower to skip payments altogether.

How about we just eliminate everyone’s mortgage? Free housing for all!  I’m sure Fidel would approve–he already praised the miracle of Obamacare.  Why would Cubans bother to risk life and limb escaping the horrors of socialism if they only get more of the same here?

God help us all.


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