I hope you all realize that far from being “free money”, these loans are guaranteed by HUD/FHA and when they’re “forgiven” what actually happens is that the federal government assumes the loan and pays the interest on it from your taxes.
So really, instead of being interest-free and forgivable, you and your descendants will be paying interest on these loans through your taxes forever. The total amount will far exceed the amount that was “forgiven”. And of course, since these loans increase the money supply, as all loans do, the inflation that results will also eat into your paycheck’s buying power.
Don’t worry, the banks get their interest in the end. They’re assured of it because the government has pledged your taxes to pay it. Not only that, but should you end up defaulting on your loan, they have a property that’s been kept up by the taxpayers, rather than they having to rehab the property before selling it as a REO.
The banker’s scam is beautiful in its insidiousness and subterfuge.
Oh, and while helping the elderly and others down on their luck is a fine goal, this isn’t the way to do it. Consider that fact that if these people hadn’t had to pay 2 1/2 times the price of their house in interest on bank-created money, they’d have plenty to do their own repairs.