A payoff for irresponsibility
so, today Dear Leader unveiled his mortgage bailout proposal. $75B. Here are couple choice provisions of this bill:
“The Treasury will share in the cost when lenders reduce monthly payments by forgiving a portion of the borrower’s mortgage balance.”
translation- we know a lot of you bought homes that were over-valued and that you had no reasonable expectation of being able to pay for, so we’re going to adjust the value of your mortgage to what we deem to be fair.
By bringing down the foreclosure rate, it will help to shore up housing prices for everyone.
translation- we’re going to attempt to continue to perpetuate the sham debacle of over-valued housing prices through creating an environment of fixed pricing. While we realize that many of you were flipping properties as an investment tactic rather then purchasing homes as residences and places to raise families, we also realize that reduced values will lower property tax assessments, and we can’t have that.
Companies that service mortgages will get $1,000 for each loan that’s modified, and as much as $1,000 for three years when the borrower stays current, the government said. Homeowners also are eligible for $1,000 annually for five years for remaining current on their loans, according to the plan.
translation- your tax dollars are going to pay for this, so don’t think for a second that you’re going to be getting any kind of a reward. In our graciousness, we’ve decided to throw you a bone for acting like mature, responsible adults.
I think this bothers me more then anything that Obama has said or proposed to this point. Where does self reliance come into play? What about judgement? What about responsibility? What does this say to the millions of us who either purchased homes that we could afford without any kind of crazy financing and STILL lost our shirts, or to those of us who just weren’t comfortable with no doc, interest only, and ARMs…who were priced out of the market a few years ago with the absolute insane upward spiral of housing prices driven by the greed of investors who purchased homes for reasons other then what they were intended for?
This bill sets a very bad precedent in that it tells us that we can’t be held responsible for our own actions and decisions, and that through only the grace of our benevolent and all-powerful government can we hope to be able to survive.