Thread: Hillary and Bush agree: Government should bail out homeowner

http://michellemalkin.com/2007/12/03/hi ... omeowners/


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About Contact Archives RSS Columns Photos Michelle Malkin Hillary and Bush agree: Government should bail out homeowners
By Michelle Malkin • December 3, 2007 11:41 AM Here we go again. Earlier this summer, Hillary Clinton and the Dems started clamoring for a massive federal housing bailout. President Bush followed suit. Now, both sides are at it again:

Democratic presidential candidate Hillary Clinton called for a 90-day moratorium on foreclosures for homeowners who default on subprime mortgages.

The New York senator, is also seeking a five-year freeze on the monthly rate for subprime adjustable mortgages and a requirement that the industry report how many mortgages have been modified. In a letter to Treasury Secretary Hank Paulson, Clinton said she may consider legislation to protect lenders from lawsuits and let them convert certain mortgages into “stable, affordable loans.â€

I really believe the vast majority of people who are facing foreclosure, got there by overspending on everthing else. Like credit cards, new cars, new furniture for their new houses, etc.

Most of us have learned you pay your bills, before you play.

Did we not see this coming?

I do think Americans overspend - absolutely.

I also think most, not all, but most of the ones who cannot afford their homes should have had sense enough not to purchase the homes just because 'we can make those payments'. The don't think about insurance, taxes, upkeep, etc., and many bragged they bought their homes a year ago and, 'it's already worth $20K more" . The taxes are going to escalate, often whether the market prices does or not - and the insurance certainly will as the price goes up.

Some credit card debt, however, is not totally because of overspending - although much could be helped. Think about a working man who suddenly has medical costs. Even with insurance, a lot will come out of pocket. Think about increased property taxes, car registration, professional licenses, insurance, etc. Those are things that must be paid, so you end up putting some of them on the credit card or you pay them with your food money and buy food on the credit card.

Americans do tend to overspend, true. On TV this morning they had a segment on one man who owns a townhouse in MD. His mortgage went from $2200 when he bought the house in 2005...to $3400 a month today! That's a HUGE increase in the interest rate!

YEs, and there were some financial people warning homebuyers of this fact - yet they wanted those big homes -

You know one of the things the government and the ones who claim our economy is so strong is that 'homeownership in America is at an all time high'.

People who make a downpayment on a home that is way more than they can afford - who plan to pay on it for 30-40-50 years - are not really homeowners - at least it doesn't seem to me.

I realize most of us have to have house payments for a time, but when you owe a fortune and have made the minimum down payment, you really don't have anything - except obligation.

The govt shouldn't bail out any mortgage companies because of this. This is their fault. If they had not offered all the subprime package loans that they have, we wouldn't have this mess. They only did this to increase their bottom line and line their pockets.
How else can you explain the invention of the ARM loans, no document loans, and the other questionable loan programs they've created?

And thanks to the easy availability of credit, Americans have been spending beyond their means for too long. Economists have been warning about this for years, and nobody seems to have paid attention.
If you look at recent GDP graphs, you will see the savings sector (I) of the economy has been negative since around 2000.

Clearly some folks are living above and beyond their means. Do they not plan ahead ? Do they not understand that an adjustable mortgage can increase their payments ? Do the tax payers have the responsibility for bailing out someone who made a bad decision and got in over their heads ? I don't think so. The problem is these days its not a question about how much the price tag is but instead its about how much the monthly is.

Johnny

I will also take a wild guess here alot of those bad loans went to high risk home buyers such as "illegal aliens" who have been deported or left town due to job loss or law enforcement.

I don't believe you can give loans or credit cards to law breakers and expect them to stay around for the bad times or do every thing possible to hang on to their home, it was a place for them to hang their hat for a while and when things get tough just walk away, as they will walk away from their credit cards and any other obligations.

Anyone who takes a chance on giving perks to illegals deserves what they get, don't bail them out with my money, I did not OK it I fought against it!



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This whole loose credit thing got started by Bush's executive order on Minority Housing Initiative to house his illegal aliens. Who would have thought making loans to illegal aliens on the basis of their tithe record to the church would result in foreclosures.

hey... my neighbor has 7 houses. Lives in one the other 6 were bought on subprime trying to flip them before the crash....

Here I am making 102,000.00 a year a I dont think I could afford the prices,

Now, I am going to get stuck with the cost of all the looneys and I am the one without a house

You tell me who's laughing all the way to the bank