On Thu, 19 Feb 2009 10:36:52 -0800 (PST), Frogwatch
wrote:

On Feb 19, 1:24 pm, Wayne.B wrote:
On Thu, 19 Feb 2009 07:33:55 -0800 (PST), Frogwatch

wrote:
It happens to many of us, we make one of the biggest purchases we will
ever make and soon after we begin making payments we find ourselves
“underwater” on it with it being worth less than we owe. Should we
just walk away or stay in it? If you just stay with it for long
enough and continue making payments, eventually you will be above
water but that will take a long time. Maybe I should ask for a
bailout. If I call my loan for my new truck a mortgage do you think I
will qualify for the Obama bailout?

I know you're being facetious but almost all vehicle loans are
underwater from day one unless you put up a really substantial down
payment.

You miss the point. Why should "underwater" mortgages be bailed out
when underwater auto loans are not, the concept is the same thing.
Both will eventually be above water.

What I haven't heard any of the "talking heads" mention about the
mortgage problem mitigation is whether those who refi-ed their home to
buy a boat or auto qualify.
I can see reducing interest rates to keep "qualified" people in their
home. Not good, but if stabilizes the economy it might be worth it.
Might make a 15-30 mortgage a 50-year mortgage to reduce the vigorish.
The banking industry and not the taxpayer should take the big hit
on this. Principal loan amount should *not* be reduced.
Those who refi-ed to pull money out of their so-called equity should
not qualify. They were irresponsible and should live with that.
Same with owners of more than one home.
It's going to be a nightmare to administer this.

--Vic