McCain Supports Mortgage Crisis Bailout
By Doug Jacobs on Oct 7, 2008 in Foreclosure News
In the Tuesday evening, October 7, 2008 presidential debate, Senator McCain announced his support for a federal program to help those facing foreclosure. He suggested that the government institute a program to help homeowners who have mortgages that exceed the value of their home.
Under such a program, the Federal Government will, apparently, buy the mortgage and reduce it to more accurately reflect the house’s actual worth. Thus a homeowner, whose home has decreased in value, wouldn’t have to pay the amount of the loan that is unsecured (not covered by the house’s value). Such a program would stop innumerable foreclosures. The exact details, however, are still somewhat vague, and like many government programs; the devil is in those details.
Senator Obama has long supported a program to allow bankruptcy judges to do much the same thing – adjust the amount of a mortgage that is treated as secured and therefore has to be paid.
So there might be some relief for homeowners no matter who wins the White house in November.
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