Diana Olick of CNBC believes no one is going to notice what she did. Well, CNBC now that you brought this to our attention, I think we will amplify it!
In Second Liens Forgiven: Are You Kidding Me, Olick did her homework and discovered in the fine print of Obama's Home plan:
Is this incredible or what? People used home equity loans as a glorified ATM card to stay afloat while their jobs disappeared as well as to continue a middle class lifestyle they could not afford. Seniors also did this in order to plain survive.
What a loophole! Can you imagine just getting $40,000, $80,000 dollars forgiven and you walk away Scot-free?
Someone takes out an absurd revolving credit loan, clearly could never afford it and wala, now to put their debt in line with their income ratio it is forgiven without even entering bankruptcy?
The original U.S. Treasury plan details document is here.