HAMP for Investors Announced
I just saw an announcement on Bloomberg TV that the HAMP or Home Affordable Modification Program will be extended to investors for up to 4 rental properties. Starting in May, investors can make application for a loan modification that can include reduced interest rates, increasing the length of the loan, and principal forgiveness. One caveat is that the property must remain as a rental, though I did not hear what length of time is imposed for participation.
Where has personal responsibility gone in today’s world???
Purchase a primary residence with a no documentation loan that you knew you couldn’t afford in the best of times. Stay in the property for months/years with paying a mortgage or property taxes… shrug it off.
Take out big college loans for a degree with limited career potential/income at an expensive college when a state university would have done, make minimum payments for 20-25 years and then it is forgiven… no sweat.
I may have just become my father in that I’m a bit alarmed & irritated with the way some people have totally forgotten that decisions have consequences and expect someone else to take care of them when it doesn't turn out. We all want to get through this financial crisis, but have we taught anyone who is listening that there are no moral hazards left???
I welcome your opinions, whatever they might be.