From Townhall (emphasis mine):
One of the administration’s programs helps distressed homeowners avoid foreclosure by providing permanent loan modifications.
Yeah, this is going to work out well. Doesn’t the Administration remember Rick Santelli’s rant on the floor of the Chicago Board of Trade where he and the traders railed against the idea that they (and us) should be responsible for paying other peoples’ mortgages? The TEA Party movement it helped to spawn has become the biggest political movement in recent history – and no friend of the ever-expanding-government policies of Obama!
Another program, now ramping up, gives states that have been the hardest hit by falling home prices funding to help reduce the principal of a borrower’s loan, among other things.
Heck, why can’t *I* get my principal reduced? After all, I’m current on my loan – why should I be discriminated against? I’ve played by the rules – not buying more house than I could afford (in fact, bought far less), haven’t remortgaged a whole bunch of times, and blown the cash on toys and vacations, or redone the house well above my pay grade. Heck, who WOULDN’T want to chop off 10%, 20%, or even more from their mortgage? Hey, MY house has fallen in market price too (and selling is about 196 days in my town to boot!).
"I think those will make a big difference in terms of the problems of unemployed homeowners and falling house prices," said Massad. But he added the process was tricky.
"There are issues of how you do it, making sure it’s fair, making sure you don’t create the wrong incentives," Massad said.
Fair? Are you kidding? NOTHING about taking taxpayer monies and just giving it…
…to others is fair. It does create the wrong incentive, espECIALLY if that person behaved as I didn’t – it says that regardless of your bad decisions – "Father" Govt is going to spread the cost of those bad decisions across everyone else.
And of COURSE, the grievance-mongers aren’t happy that those that took their own money (or their investors’) and made the loan aren’t being too helpful (a repeat of when Obama went after the senior GM bond holders and called them greedy as he handed over GM to the UAW):
One housing counselor expressed frustration with the servicers, saying more people would still be in their homes if their principal was reduced.
"Servicers are not required to do it," said Shaneece Hudson, a mortgage adviser with the National Community Reinvestment Coalition. "Principal reduction is an option (for the servicers.) But they don’t do it. They will do everything else first," she said.
Funny, that. Usually, businesses are in the business to make a profit for their owners – and these folks aren’t happy that the lenders won’t roll over and turn into charities? And deny the Obama Administration the glory? But I still haven’t figured out this: if the folks are unemployed, how is reducing the loan principal going to help – they STILL have no money to pay as they have no job!
It’s all about behavior…and these chuckleheads haven’t figured out that the behavior of the Obama Administration towards employers and the outright chaos they are presenting toward them as to the cost of adding employees is what is keeping these loans from being paid. Root problem, that.
