. . . . . Perhaps the Washington state couple featured in a recent Money story on loan modification was a bad example of the housing crisis (Responsible homeowners resent aid to the irresponsible, Letters, Wednesday).
. . . . . But I know of homeowners who made good down payments and before this mess began had 20% or more equity in their homes. Now they owe more than the home is worth, through no fault of their own. Being underwater and current in their payments, they are unable to obtain any mortgage modifications. To get one, they would have to default and ruin their credit. It is not just irresponsible homeowners who are suffering and need help. Something as drastic as the bank bailout needs to happen or the housing market might collapse. Jim Karavite, Royal Oak, Michigan: USA Today 9/20/2010
. . . . . Maybe you haven’t noticed, Jim. The housing market collapsed about two years ago, which explains why so many folks are “underwater” now.
. . . . . As soon as somebody coined the word “underwater” to represent home mortgages, liberals across the nation climbed on board to beat the drums for more government control over human greed and evil-doers. Everybody understands underwater, as the folks in New Orleans learned. What most liberals refuse to accept is that virtually everything you buy is worth far less as soon as you remove it from the store. If someone else, like a bank or mortgage company, is sharing ownership with the purchaser, there is a contract you must sign to secure repayment, or recover value in the event of default.
. . . . . The above liberal letter writer is dead wrong on at least two major points in his classic letter. The housing market has already collapsed, and the banks have been bailed out because of it. Exactly why anybody should receive a government subsidized bailout for a home mortgage that is current is a stretch of the imagination. This is probably why responsible homeowners resent subsidizing irresponsible homeowners??? However, this is the policy of our current “re-distributionist president”.
. . . . . The second factual error is that any homeowner with decent credit is able to modify a home mortgage at any time, increase or reduce the mortgage amount, and negotiate a more or less favorable interest rate. The fly in the ointment is discovered when somebody, usually a liberal, feels the government should guarantee the value of all consumer purchases. Hello!!
. . . . . Let’s make sure we understand exactly what is proposed through “Mortgage Modification” as proposed by our liberal letter writer. When the house is underwater, the mortgage should be re-written to represent its true value. Right!! Exactly who is supposed to pay for this loss in value: The bank, the government through loan guarantees, or the tax payer?
. . . . . Let’s consider an everyday example which most Americans understand. When you purchase a new car, its value is underwater by about 25% as soon as you drive it off the lot. If you paid cash for the car, that is the loss in value you pre-paid. On the other hand, if somebody else, like a bank, helped you finance a loan, the car is underwater by 25% when you drive it home.
. . . . . Using this car example as a matter of current government policy, it is now possible to buy a $40,000 car, and immediately lose $10,000 in value the day you drive it off the lot. Because the car is underwater you refuse to make any payments. Now you get to keep the car, and the government (tax payer) is responsible to reduce the car’s mortgage to represent its true value. This kind of financial nonsense makes sense only to Bernie Madoff, who never paid for anything, and a large number of folks in California, and now Michigan.
. . . . . In terms of mortgage modification, why is the government responsible to maintain the value of your car purchase, your home purchase, or any purchase you individually may make? Because your new car is now 25% underwater, should the government step in and pay for a reduced mortgage? If so, who should take the loss in value? The bank? The tax payer?
. . . . . But, this is exactly what liberals seem to believe. Somebody has to pay for my loss in “value”!!! Demonize the banks and make them pay. Demonize Wall Street, whoever they may be, and make them pay. Demonize human greed, and create a consumer protection agency which will protect every consumer from all the greed in the world.
. . . . . When you are “underwater” in anything as a consumer, the government must pay, – which means those who pay taxes, – the evil rich. Damn right, those who pay taxes are upset.
. . . . . Whatever happened to “let the buyer beware”. Does the individual no longer have responsibility to be prudent in managing his personal affairs, or is he/she so irresponsible in conducting his daily affairs that Big Brother must create a federal protector to keep the little folks from being ripped off by all the unscrupulous evil-doers in the world?
. . . . . In the final analysis, it is always the evil rich, also known as the taxpayer, who must pay the bills for all those who, through greed or ignorance, believe they are entitled to something they can’t afford, and expect that “something must be done” for those who are “suffering and need help”.
. . . . . If the current administration of ultra-liberals ever finish transforming America as they would really like it, there will be no “capital” in America, we will all receive a check from Washington in exactly the same amount as everybody else, and the land of opportunity will be no more.
. . . . . But wait!!! Wasn’t this experiment already tried in the USSR over the last 100 years, and went bankrupt fifteen years ago? One definition of idiocy (or underwater) is doing the same thing over and over and expecting a different result. Or, as my 14 year old grandson once laughed, never underestimate the power of idiots in large numbers. At present, liberals and progressives do not have a death-grip on idiocy. It appears to be a contagious disease which has infected most of the federal government. Many states and cities are not far behind in their “collective idiocy”.
. . . . . America’s taxpayers are the evil-doers who end-up paying the governments’ bills, through no fault of their own. Hello!! Figure that out. When the taxpayers are all gone, who will pay for all the entitlements then?