Low-Income Renters to Pay for Housing BailoutDean Bakerbyline‚ May. 22‚ 2008Unfortunately, that is not a joke. This appears to be the latest gem to come from our leaders in Congress. Just to remind everyone of where things stand, Congress was wrestling with the situation of several million low- and moderate-income families, who are facing foreclosures on their homes. The main problem here is that they were pushed to buy over-priced homes in bubble-inflated markets. Making matters worse, many of these homeowners were also the victims of sub-prime mortgage scams. They got loans that started with relatively low teaser rates. These rates then reset, typically after two years, to much higher rates that made the mortgages unaffordable. |