I’m not an economist (got a C in HS econ). But I’d be curious to know the affects of a wide apply mortgage forgiveness if the bank holding your loan goes under.
Let’s say the only requirement to have your home free and clear is that you remain in it for 5 years. This would be an fascinating debate. I’d reckon it would boost the economy because of the extra income.
So the taxpayers end up paying for all the mortgages held by a bank that went under. Sounds nice but this could add up to trillions of dollars, I’d prefer the homeowners live up to their obligations – except it was me being forgiven (building the money), them I;’m all for it.