Yet another try at foreclosure rescue

Well, as Ronald Reagan said “Government doesn't solve problems; it subsidizes them."  I guess all the stories out there about tarp funds going to waste and a revamping of a revamping of the government’s efforts to stave off foreclosures are a modern day example of Reagan’s infamous quote.  The government helped create the mortgage crisis by “regulating” or should we say ‘deregulating” the banking industry via Fannie and Freddie back in the 1990’s. This was the government’s effort to make sure that those that wanted to own a home could, regardless of their ability to pay the loan back.   Today, the government blames the “fat cats” for the problems and vows to fix them.  Anybody ever wonder what would happen if the government just stepped back and let the market sort thing out?

The following story from CNNMoney is just another in hundreds about the government helping us all out:

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Under fire for the low number of people receiving long-term mortgage help, the Treasury Department on Thursday announced new guidelines that will require applicants to provide all paperwork before getting a trial modification.

The new policy will make it harder for troubled homeowners to start the process, but it should make it easier for them to qualify for permanent assistance under President's Obama foreclosure prevention plan.

Click here to read the entire story: CNNMoney