Some Homeowners Feel Mortgage Bailout is Unfair..
Posted on December 5th, 2008 by Justin under Advice, Bradenton Florida Real Estate, Florida Real Estate, Sarasota Real Estate, Shirley International Realty Inc.
(“Yes, Mr. Loan Officer! I’m literally upside down in my home!” I like the article below because this is a question I get quite a bit.. “What about me? The guy who didn’t make a stupid investment or take uncalculated risk & buy more home than I could afford? And the Feds are letting my neighbor escape his mortgage??” Understand Mr. Disciplined Mortgage Payer.. That penalty is not as light as it seems.. A blotched credit report with recorded foreclosure will haunt speculators for many years to come..)
Mortgage help unfair but needed
SAN DIEGO – Dec 5, 2008 – Some homeowners who make their mortgage payments on time say they are irritated that the U.S. government is helping others who don’t.
Helping some homeowners but not others may not be fair but is necessary to keep the U.S. economy from sinking further, CNNMoney.com reported Friday. As the number of delinquencies soars, home values decline, adversely affecting the economy.
“There’s always the issue (of) ‘I’m paying my mortgage even though I’m upside down and my neighbor is not,’“ said Mark Goldman, a real estate professor at San Diego State University.
Letting delinquent mortgage borrowers slip into foreclosure harms the entire U.S. financial system, Goldman said.
“The appropriate public rationale (for the bailouts) is to support housing prices,” he said. “The reason they’re doing this is to stop plummeting prices and everyone benefits from that.”
But just because it’s appropriate doesn’t mean taxpayers like it, CNN Money found.
“All these idiots who bought homes they couldn’t really afford are going to be rewarded with loan modifications, but what about those of us who didn’t make stupid decisions?” asked Jay Black, a CNNMoney.com reader who rents in New York.
Others wonder why help is available only to borrowers who are at least two or three payments behind.
“Why does a homeowner have to be behind in their mortgage to qualify?” asked Tamila Fiola of Fall River, Mass. “Why can’t help be brought to those that are struggling to keep the note current? My sister-in-law pays over $5,000 a month for her mortgage; she struggles to make it but she does.”
Copyright © 2008 by United Press International.
December 9th, 2008 at 5:37 am
nice picture, i like it, make me laugh…. ha ha ha….
December 9th, 2008 at 8:19 pm
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December 20th, 2008 at 1:53 pm
The housing market has crushed a lot of people. The people that are upside down in their house are their because the lenders let them. But then the lenders do not own the mortgages. it is like a bad chain of command. My Bank is not even my bank. Who knows who owns my house. I know I never will. Most people do not. I am 150k upside down and have an interest only loan. I just got laid off and the bank does not want to talk to me. You say my credit will be messed up. The government needs to take the morgages and unbundle them and let the homeowners or renters in my case deal with someone who is making making the money. all the servicers are is High end property managers with no say so in your situation.