Would this housing plan be better?

Credit and mortgage advice Forums Home Insurance Would this housing plan be better?

This topic contains 0 replies, has 1 voice, and was last updated by  Anonymous 8 years ago.

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    The government is about to spend a fortune on bailing out banks and homeborrowers facing foreclosure. Why not take all of these 30 year mortgages, and change them over into 50 year mortgages with a comparative mortgage rate and a mortgage insurance attachment. The monthly payment would drop to an affordable range and the banks are still guaranteed to get the agreed upon price for the home. If a person still cannot afford a 50 year monthly rate than they should not be there anyway and they can be foreclosed on. In twenty years the price will be back up where it was and the owners can sell and break even. Much better than foreclosing or government bailouts right?
    Currently, these people are never going to own their homes, they are getting foreclosed on. When conditions get better, they can always refinance to shorter term or pay more to pay down their principal. We are talking about people who are losing their homes, trying to get them a more manageable monthly payment. People choose 30 year mortgages over 15 year mortgages all the time. How is this different?

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