13 October 2009

Whiskey Tango Foxtrot?

So, let me get this straight, the latest foreclosure prevention program from the Treasury involves evicting people from their homes:
HAFA already holds the support of Fannie, according to a VP at the agency, Eric Schuppenhauer, who believes the new program allows borrowers in imminent default to “make a graceful exit” from their home. HAFA will keep the stigma associated with foreclosure away from the borrowers, he added, and help keep communities intact.

Maggiano adds that HAFA will offer financial incentives to both servicers and borrowers, and associated secondary investors, in order to facilitate a short sale or deed in lieu of the property.
So, this is sensible policy, while giving bankruptcy judges the power to cram down mortgages, like the do for almost every other sort of debt is evil socialism, or maybe a bad hair day, or something bad.

Huh?

H/t Atrios

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