An August Surprise from Obama? | Analysis & Opinion |: "Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.
The move, if it happens, would be a stunning ">>>>>>Keep reading
This Editor's OP: And you all know how much the bailouts helped JOE the Homeowner last year - right? Too bad it take s low approval ratings and an upcoming election in November to get the polticians working on the problems. Of course one nice side benefit - all those pesky loans that have fraud rift through them will now be absorbed into the system.
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