Originally Posted by Boney_Taters
But, as was discussed in committee today, what if the loans are sold to the government for MORE than they are worth?

The banks and lending institutions, regardless of the pisspoor job they did in handing out those loans, will benefit from the bailout.

The homeowner, who may have entered into the agreement seeing the world through rose colored glasses, won't benefit at all.

The country as a whole will be hamstrung by the incredible amount of money being diverted from important citizen projects, into banks and lending institutions.

This is the main problem and this is the reason I don't trust the government to do a good job with this. Banks have already written down a lot of losses on those loans and if they will now sell those to the government at face value when they were originated then I think that is plain wrong.

It is not hard to find average current market price for a property and I think the government should pay that and nothing more for a loan, even if the face value of the loan is 100,000 dollars higher.

A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb

The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond