it is probably a good idea. it stops the government from having to continue supporting them with their mortgage by making it easier to dissolve the agreement.
A guy that does not live up to his signed contract gets $3k to move. The guy that paid cash for his house and lost alot of money gets nothing for moving expenses. Keep rewarding people for failing and you will soon find everyone failing.
From the article: "Along with the financial incentives, the new government program makes another key change. Mortgage companies will have to set their minimum bid before the house is listed for sale. If the offer is above that, the lender must accept it." Hmm? Like auction, but the (first) to go more high than the minimum bid is the winner?
Damn, more free handouts. This just elimates a futher drop in prices that could have been a benefit to a first time homebuyers, by doing this it's creating another propped up housing market, it would be interesting to take notice of what the price of a true real estate market would be, but since intervention rules in the housing market actual prices will never be noticed.
All this dose is kicks the can down the street further, keep the banks in the black by utilize mark to market, gets another group of suckers to buy over priced homes, and makes Obama admin looking good to the blind cool-aid drinkers who can't see the bigger picture here. Home prices will now take years longer to gt back to fundamentals. itâs one big ponzi forced the tax payers.