[LomanBill]

[Restructuring a mortgage with a balance of $500K on a house that is now worth only $300K through no fault of the homeowner]

 

What about the ones who've refinanced the house X times, taken all the equity out and blown it on His and Hers (or Hers and Hers, ehem) Escalades, ATVs, big screen HDTVs, Omaha Steaks, and trips to Club Hedonism?

 

We bail them out too?

 

No.  They should have lived within their means.

 

We'll feed their kids, that's the Christian thing to do - but mummy and daddy (or, mummy and mommy, ehem) need to learn a few lessons they apparently were never taught.

[fightinJAG]

Of course not.

There would be rules, you know. Just because something can go down a slippery slope (as can everything known to man) doesn’t mean it will.

There would be situations where restructuring would be helpful to the larger economy and where it wouldn’t be. This isn’t a reward to the individual per se.

It would be very simple to limit such a plan to home purchases (i.e., exclude refi’s) within a certain period of time (last five years, say) and where a certain downpayment (such as 10-20%) was put down by the home buyer.

If you’re in that category, my FRiend, your downpayment, however many tens of thousands of dollars it was, is GONE and is NOT coming back in a very very long time, if ever.

The loss of that downpayment is 100% caused by the policies of the U.S. Government through the RATS who flooded the market with toxic paper, insured it on our dime, fed the greed that is inherent in human nature, and now want to use our money to bailout deadbeats instead of giving a break to those who are contributors, not takers, in our economy.