First of all. You don't get it. The homeowners aren't getting cash. The bankrupt too big to fail banks are! Homeowners get new loan from gov for twice what their home is currently worth then instantly have to use the money to pay off bank with prior mortgage. Bad bankrupt too big to fail bank off the hook on a mortgage that they made commission on in 2001 and now is worth half. Taxpayer on hook. walla. Everyone should no this. It's not complicated. and deadbeat homeowners are not going to be off the hook for the debt. Banks are.
My friend is going to go for this even though he's not underwater. But, he's gonna take a new 30 year mortgage even though he's got just 16 left on his mortgage. Whatever lowers his payments he likes.
Obama is obviously trying to buy votes.
House prices are going to continue to fall where the wages are far below 1/4 house prices, where there's 10% + unemployment, where there are many foreclosed houses, where there was a big bubble, where the demographics are bad.