The government is now extending this program to homeowners who’s mortgage is 125% of the value of their home! Are we trying to start this mess all over again?

Just because someone made timely payments on their mortgage for the past 12 months doesn’t mean they won’t run into financial hardship tomorrow. If that happens, the first thing they do is walk away from a home where they have negative 25% equity!

No bank would ever lend in this situation normally, so I’m guessing that the government (i.e. you and me as taxpayers) is at least partially backing these loans in case of default.

On an optimistic note, this will probably help increase the pool of cheap, foreclosed properties that CNA Capital can scoop up on the cheap - let us know if you want in on this action!

[1] Obama extends mortgage refinancing program - Jul. 1, 2009