I am sure this will not stop Republicans from railing against it even though it is less of a tax payer financed give-away then McCain's proposal to simply pay banks full cost for the mortgages, then re-negotiate directly with homeowners. I wonder how McCain will spin his opposition to the Obama plan, since it is less "liberal" and "socialistic" than his proposal.
http://money.cnn.com/2008/10/08/news/economy/McCain_mortgage_plan/index.htm/snip
Under a mortgage rescue plan announced at the debate Tuesday night by Senator John McCain, much of the burden of paying to keep troubled borrowers in their homes will shift to taxpayers.
McCain's original plan called for lenders to write down the value of these mortgages and take those losses. But the Republican presidential candidate unveiled a new $300 billion plan in response to the first question of the debate.
He said, "I would order the Secretary of Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes, at the diminished values of those homes, and let people make those - be able to make those payments and stay in their homes."The government would convert failing mortgages into low-interest, FHA-insured loans.
"Millions of borrowers" would be eligible for the program, dubbed the American Homeownership Resurgence Plan, according to McCain economic advisor Doug Holtz-Eakin.
To qualify, homeowners would have to be delinquent in their payments already, or be likely to fall behind in the near future. They would have to live in the home in question - no investment properties would be eligible - and have had demonstrated their credit-worthiness when they purchased the property by making a substantial down payment and by providing documentation of their income and assets - no liar loans./snip
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