Mortgage Relief Program A Slap In The Face To Some (Subsidizing Life's Losers Alert)

Los Angeles Times ^ | 12/07/2007 | Walter Hamilton

[goldstategop]

When the government bails out people who bought more home than they could afford, what message does that send to those who treat the most important decision in their lives responsibly? It tells them they're suckers for waiting to buy a home they can afford. Talk about subsidizing life's losers - with your tax dollars. Welfare for the reckless and greedily indulgent.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[darkwing104]

bump

[Retired Greyhound]

exactly. I am in the same position in Long Beach.

Do the right thing and get screwed by the GOV.

[flowerplough]

"Aesop", "ant", and "grasshopper" all come to mind... some of us ants are suckers for waiting to buy a home we can afford.

[Retired Greyhound]

“delay the eventual day of reckoning when property values finally settle at their natural levels, keeping many would-be buyers locked out of the market in the meantime.”

[Truth'sBabyGirl]

I’m not worried. I’m sure Hillary or Obama has a plan to give huge tax credits to offset rent for those of us who are young professionals eager but now unable to become homeowners.

[mewzilla]

I’d love to know the average value of the homes being bailed out.

[goldstategop]

I used to live there. I couldn't afford a $600,000 home in California. President Bush's mortgage rate free is a band-aid. It does nothing to address the affordability question. What good is a mortgage rate freeze if you still can't afford to buy that home?

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[goldstategop]

By interfering with the market, the government keeps housing prices artificially inflated and only delays the inevitable.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[LIConFem]

Once again, the gov’t rewards stupidity and penalizes responsibility.

[Puppage]

It does nothing to address the affordability

Nor does it, nor can it, address the stupidity of home buyers failure to fully understand the mortgages offered BEFORE putting ink to paper.

[GraceCoolidge]

"It's hard for me to believe that someone didn't realize they couldn't afford a $600,000 home."

I wholeheartedly agree with this man. I cannot believe the houses people "thought" they could afford. The husband manages an auto parts store, the wife is a secretary for the school board, and they have three kids-- but hey! They can afford a 3500 square foot house with five bedrooms, media room, finished basement and "teen suite."

[goldstategop]

The ARMs and other exotic mortgage products were offered as a solution to the cost of a half-million dollar homes. They aren't. Sooner or later something will have to give.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[TexasGunLover]

Once again, the gov’t rewards stupidity and penalizes responsibility

Yep, remember, "We're from the government, we're here to help you."

Yeah, right...

[dfwgator]

The “Invisible Hand” does not take kindly to being interferred with.

[goldstategop]

This program can only help a limited number of people. Government does not have infinite resources. Its time the American people realized government does not have the means to take care of every one.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[AbeKrieger]

It does nothing to address the affordability question. What good is a mortgage rate freeze if you still can't afford to buy that home?

You buy one you can afford, and you take that into consideration before entering into a legally binding contract. I like to think that if I earn more money, I can buy things that others cannot. Expensive homes are not an entitlement, they are a LUXURY ITEM.

[Vet_6780]

Actually this ploy will not work.

All we need is lower rates to get back to normal. Much lower rates like after 2001.

The Fed raised the rates back up and now the entire banking system is froze up.

[bert]

As I understand it, there is no subsidy or taxpayer involvement. The life’s losers are not the winners. The lenders are the winners as is the public.

The public will benefit from the plan negotiated with the banks by not having bank distress and roiling of the markets. The banks undoubtedly developed the plan and allowed the President the plum of making it a policy of the government and removing the blame that might come from stockholders.

The people with bad loans are being given a 5 year window to solve their problem by refinancing or selling. The cost to the banks will be minimal compared to the cost of foreclosure and the resulting aquisition of realestate.

Those who experienced rate rises and foreclosure in 2007 are not saved. They must either bear the rate increase, refinance, selll out or be forclosed.

By the end of 2008 it will all be over except for those terminally stupid and unwilling to act to save themselves.

[Non-Sequitur]

Stop and think about who’s really being bailed out here. It’s not the over-leveraged, credit challenged homeowner who could walk away and probably not lose any money. It’s the idiot mortgage brokers with their ‘no credit bad credit no problem’ pitch and their practice of lending money to anyone with a pulse, and the major banks who bought the mortgages who are being bailed out. They’re petrified at the idea of reposessing all those homes in a plummiting housing market and are desperate for the governemnt to save them.