31
Aug
07

1000th Post: Mortgage Crap

President Bush may very well have done some less than bright things while in office. But he’s got plans to bail out stupid people with stupid mortgages. Please do not get me wrong. This is not a race thing or a class thing. It’s common sense. When you buy a house, you put the asset (the house) up as collateral in the event that you default on the loan. This means that if you stop paying your mortgage, you lose your house. It’s the same with a car loan. If you do not understand this concept, you should not be borrowing money for the purchase. You should also understand the terms of your loan. If you don’t, get somebody to explain it to you. Understand what happens if you default.

Way too many people bought homes that they really could not afford. Or they bought homes with mortgage products that were simply stupid. Adjustable rates that guaranteed that the rate would go up, negative amortization loans, flex-pay loans. Or high interest (sub-prime) loans. This is insanity. If you were stupid enough to get yourself into this bind, you deserve consequences. And those consequences should not, under any circumstances, involve the federal government coming to your rescue. President Bush will direct Treasury Secretary Henry Paulson and Housing Secretary Alphonso Jackson to work on an initiative to help troubled mortgage holders get services and products they need to keep them from defaulting on their loans. Bush also has other initiatives that equate to a federal bail out.

I call bull shit.

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1 Response to “1000th Post: Mortgage Crap”


  1. 1 anna
    August 31, 2007 at 8:46 am

    I call bullshit too. I bought my house during the real estate boom, I could have qualified for a bigger loan, but I was more concerned with being able to pay my bills than with impressing my neighbors. If people get in over their heads, I’m sorry but they deserve to drown.


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