California to offer program to trim underwater mortgages

The Sacramento Bee reports:

Lots of people will want to get in on this one: California is going to use federal money to pay down the mortgages of struggling homeowners.

The California Housing Finance Agency announced Wednesday that it will spend $420 million to trim individual mortgages by up to $50,000.

So, taxpayers through Freddie and Fannie helped many buy overpriced real estate in California. Now, to deal with the problem of overpriced California homes: taxpayers are supposed to help those who couldn't afford those houses in the first place!