Readers Angry About Foreclosure Rescue Plan
There are many angry Readers Who Comment today about President Obama's $75 billion mortgage foreclosure prevention plan, but they aren't all angry about the same thing.
In one of the longest comment strings I have reviewed, there are complaints from homeowners whose mortgages are within their means and wonder why they have to help those who weren't as careful. There are complaints from investors who don't see much in it for them. There are elderly who see irresponsible youngsters taking away their retirement nest eggs. There are rules-based suggestions for what underwater homeowners should have to do as repentance for their sins before they can be helped.
Not all the details are understood in a program that is just another part of the federal response to the recession. And despite the many questions readers have, there is also a tone in many of the comments that recognizes something has to be done.
We'll start with one of the more entertaining exchanges in this often angry string:
1. strong>marknelso wrote, "In the perfect storm a conservative takes cover and does everything they can to keep the ship from sinking. The liberal tries to build a wind turbine to harness the energy"
2. GenericCommmentD replied, "What a lame ill-fitting analogy - and it might make more sense if conservative mismanagement hadn't caused your 'perfect storm' in the first place"
3. marknelso answered, "I'm rather proud of it, but I am a slime bag conservative, so consider the source."
4. And GenericCommentID said, "I don't think you're a "slimebag" especially not because you're a conservative - just don't think the analogy fits and don't think it's useful to trade in the "all liberals are this" or "all conservatives are that" mentality - best, and keep practicing the one liners ;-)
Would that we always had such civility in these discourses. Now to the others.
wege1 asked, "What do you figure the chances are that the wingnuts who had no problem bailing out big banks and insurance companies are about to get preachy about homeowner "responsibility"?
Pretty good, actually. For example, quietpatriot1776 wrote that "91% of Americans are making their mortgage payments. Another program from Obama bin Lyin' where the responsible and honest bail out the greedy, the stupid, the dishonest, and the corrupt..."
falconflight suggested that "Anyone who accepts the federal handout for their mortgages need to agree contracturally NOT to buy cable TV, or buy any vehicle weighing more than 2800 pounds (Yaris, Fit, Alevo etc), eat out no more than once a week for the next 3 years. Fair is fair, the government has the Right to tell these people how to live and make certain decisions. Don't you agree?"
And eldergent said, "Long story short: People who bought modest homes they could afford get to make payments for people who bought homes more luxurious than they could afford."
nychap44 wrote, "...My home has depreciated significantly in value... My retirement fund... is worth half of what it was worth just 14 months ago... Now after all my real losses I am told that you want me to be happy because I get to help those out by paying more taxes to support those that caused me to have lost the fruits of a life time of labor. I oppose the Obama plan. I have been punished enough for playing by the rules."
jdonner2 said, "A simple plan. Make more bad loans to the same people who can't or won't repay the loans that they shaould ahve never received. But at least this plan will allow Fannie and Freddie, who have already cost us at least $100 Billion, to fund more campaign contributions to the Democrats."
ermtwo asked, "Where does it all end?!! 75 Billion here, 800 Billion there, 350 Billion over yonder--Why not just plan to spend 5 Trillion by the end of the month and let the government own everything?!...Obama has really snowed America, and with the drive-by media's help. I hope our great country wakes up before it's too late!"
But aeaustin said, "Our country was put in dire straits by greed and those who favored Corporate Welfare rather than the common good. A lot of people were sucked into the mess by the professionals and politicians. It is long past the time to whine about who was "right or wrong" in this financial irresponsibility game. It has to be fixed, quickly, period!!..."
Abraham1860 wrote, "American Values circa 2009...You are An Idiot to Buy a Home Within Your Budget - Buy Big and Let Uncle Sam Worry About the Rest..."
cautious wondered, "Who is gonna check the underwriting on these reworked loans? If the lender is getting paid upfront by the government to rework loans, this is an invitation for disaster. Paying people fees and bonuses to make risky loans is how we got into this mess."
meadmkr said, "This program is missing a few things: 1) Mandatory attendance in a program like FreddieMac's Credit Smart/Don't borrow trouble 2) Refinace the loans at a 40-year fixed rate but do not adjust the principal via tax dollars 3)Garnish the (potential) tax refunds for any participant of this program... 4) A 10% tax additional credit on the paid interest for those with solid, non-toxic mortgages (in good standing) on our primary residence."
ltm353 wrote, "I would love to see my mortgage at 38% of my paycheck. It's currently at 71%. And no one will help me."
TooManyPeople said, "I purchased a townhouse in Prince William County in March 2008. I'm now upside down on the mortgage but current with my payments. What help is there for people in my situation?"
HillMan wrote, "The fact that this does nothing for investors is a huge mistake. As it is now, investors that want to step in and help by buying some of these distress properties can't, because we can't get loans, even though we have decades of great credit. There must be something in there for investors. Otherwise, the real estate market simply will not improve any time soon."
But steve1231 replied, "HillMan: investors shouldn't be playing with other people's money. If you are truly an investor, you invest your own money and don't need a loan."
ChangeWhat complained that "Barry, Libs and Socialists all try to solve problems with tax payer money. That...is all they know. That is how they BUY VOTES... Never control spending, reduce taxes...it is always tax and spend...disgusting."
EnemyOfTheState said, "For people needing some help with restructuring their mortgages, this seems like a win; for their neighbors, whose home values will go down if the neighborhood starts sprouting 'For Sale' signs, it also a win. Yes, your children will pay for it. They will also be paying for the Iraq and Afghanistan wars, a steep tax cut for the wealthy and a golden parachute for the nation's largest bank's CEOs."
We'll close with brady1, who wrote, "This will end when we stop using our houses as investments. They are homes first!... Mortgages, car loans, credit card debt, furniture payments, etc. They finally all caught up and consumers don't have extra cash because of debt bills. Therefore, they have to stop spending because no one will loan them money. These all lead to a recession."
All comments on this article are here.
February 19, 2009; 7:33 AM ET
Categories: Bailout , Mortgages , Obama | Tags: Bailout, Mortgages, Obama
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