Obama Takes on Mortgages

The Obama administration is going to take another wack at mortgage modification. Since the previous program had so many rules and restrictions it basically did nothing to aid the housing market or underwater home owners and was a waste of taxpayers' dollars. This time they are going after people that are not yet behind on payments, but are underwater. In order to entice banks to take the necessary hair cut the administration plans for the FHA to take ownership of the newly reduced mortgages.  This will shift the risk of default to the taxpayers! Hopefully the upcoming elections will change the tune out of Washington.