Many Americans are upset about the mortgage bailout plan announced by the Obama team yesterday. Details are still sketchy, but this looks close:

People who bought homes they couldn’t afford with a mortgage they couldn’t afford get:

 

·         A reduction in mortgage interest rates

·         A reduced loan payment to a maximum of 31% of their current income

·         A reduction of the principal balance on their mortgage

·         A $1000.00 per year cash bonus for the next 5 years for making their future mortgage payments on time

·         The One Catch – They have to attend a HUD certified debt counseling program

see: http://www.examiner.com/x-3398-Phoenix-Finance-Examiner~y2009m2d18-The-Federal-Governments-Mortgage-RipOff

As shown on ABC, NBC & CBS every night, we see people that Refinanced their homes, year after year to buy new cars, buy new appliances for kitchens and bathrooms, Remodel, and put in new swimming pools. What has people upset is that taxpayers (some who never bought a house) will pay for all these things —  and the irresponsible people keep the house, cars and everything else at taxpayer expense.

Those 91% of Americans that were responsible with there finances get nothing but the pleasure to pay more taxes for a long time in the future.

SEE:  http://online.wsj.com/article/SB123500329338917907.html?mod=djemRealEstate#articleTabs%3Dcomments

Many Americans that bought a home in the past few years, lost all there equity from years of home ownership and are not only not being helped, but they have to pay for the irresponsible.

“The Obama  White House says even those who don’t benefit directly could benefit indirectly if the effort boosts the housing market and lifts the economy.

Brenda Gilchrist said she feels like she is being punished twice, first by watching foreclosures depress the value of her three-bedroom condominium in Santa Rosa, Calif., and now by subsidizing borrowers who bought more than they could afford.” If you can afford your home, you just lose all your life savings.

Others are skeptical that the plan will work. “Twelve months down the road they’re going to say, ‘We’re going to need to throw another $50 billion at the problem,’ ” said Mr. Newton, the Atlanta property owner. “They should just foreclose on the properties, auction them off on the courthouse steps and see who buys them.”

Others believe that whenever you have a Gov giveaway program, at least 10% figure out how to rip-off the system.

I believe the Government should get the rates lowered to 4% or less to allow home prices to stabilize, allow homes to be affordable, get rid of the foreclosure backlog, and stimulate home buying again.  Did everyone forget that over 90% of the population is STILL EMPLOYED and living responsibly?

Is it too late and we have just created  a new class of “income redistributed” Americans, where it is rewarding to lie and cheat? Remember, almost every “subprime” loan was a liar’s loan ===  that’s why there are NO SUBPRIME loans today! ENOUGH of this talk by the President that SUBPRIME people were hurt through no fault of their own! Enough with these news stories of people who were too stupid to understand the paperwork or even read their application.

When the Commercial market tanks in a few months—will they get a BAILOUT??