How About a FOUR Billion Dollar Solution?
Gleaned from today's Chicago Tribune (10/03/08 Page 35):
Business columnist David Greising reports on an idea to offer $1000 per mortgage to mortgage services firms to renegotiate salvageable delinquent mortgages.
The FDIC says two-thirds of IndyMac's 60,000 delinquent mortgages are eligible for renegotiation. Credit Suisse says 6.5 million homes will enter foreclosure through 2012. Two thirds of 6.5 X $1000 = 4 billion dollars.
This sounds better and more useful to me than a 7 billion blank check with no requirements or incentives for mortgage firms to do squat. If the feds pay $1000 per and the firms rescue what would have been a $100,000 write-off, doesn't everybody, including the homeowner, win?