Clinton has a stunningly simple solution, as stated in one of her TV ads: “freeze foreclosures” for 90 days and “freeze rates on adjustable mortgages.” Those are a perfect answer, assuming this is the question: How can the government reward irresponsibility, discourage mortgage lending and increasing the cost of financing a home?
After all, it’s easy to pass a law prohibiting lenders from foreclosing. But the first result of that would be a lot more borrowers deciding that paying the mortgage is no longer the highest priority. Those who have practiced strenuous frugality in order to meet their monthly obligations would get nothing, and those who behaved recklessly would prosper.
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SHOCKER!
From BankRate.com
“Borrowers who try to ignore their financial problems — and their lenders’ phone calls — will likely lose their homes.”
Suggested new line of reasoning:
“LENDERS who try to ignore their financial problems — and their BORROWERS’ phone calls — will likely lose their loans.”