Mortgage Relief Plan: An Unfair Solution to the Mortgage Crisis

[Kelly8]

That's why I said the MAJORITY benefited...I know that's not everyone, but it's MOST people who filed taxes last year. "I" am not in trouble w/ my house, but I have to foot part of the bill for people who are? I'll gladly pay back money that my family received last year...I consider that more of a "cash advance" to me. There's a big difference.

I hope that for your sake you are never in trouble and you if you are that you find more compassion.

 

[ChefBeckyD]

The Democat kindergartner would MAKE the Republican kindergartner GIVE his crayons to the others and leave him w/ none. Leaving the Republic kindergartner crying and confused as to why he had to be made to give up something that was HIS in the first place and his parents probably worked very hard to get for him.

LOL - that's probably the more accurate scenario.

I don't mind sharing - but when it's taken from me even when I say no, I consider that stealing.

 

[BadGirl]

I don't think we should be bailing out anybody (person, bank, or employer). Not a single dime should be shelled out....

People take risks all of the time (expecting their employement to be "guaranteed", buying a house certain that the value will increase, assuming that they will always have good health, etc.). Sometimes these risks work to our advantage, and sometimes they don't.

98% of the mortgages are still being paid on time. The economy can't be *that* bad if the majority of people are still making their payments.

 

[ChefBeckyD]

I don't think we should be bailing out anybody (person, bank, or employer). Not a single dime should be shelled out....

People take risks all of the time (expecting their employement to be "guaranteed", buying a house certain that the value will increase, assuming that they will always have good health, etc.). Sometimes these risks work to our advantage, and sometimes they don't.

98% of the mortgages are still being paid on time. The economy can't be *that* bad if the majority of people are still making their payments.

Actually, the statistic I heard on the news this morning is 92%.

And the person who was giving the statistic was saying the same thing you are. It's very sad that people are losing houses, but it's always happened - and it always will happen.

I am not heartless, as people who think this stimulus is a good idea would have you believe. In fact, we as a family have personally helped out friends of ours who we know are struggling right now. Lending a helping hand is a value I hold very highly.

I still think this stimulus package is completely wrong. But only time will tell.

 

[BadGirl]

Thanks for clarifying the statistic, Becky. I heard my husband mention it this morning....and it was in one ear and out the other.


My DH and I are about *this* close to putting in an offer in on some property to build a house. This excites me and terrifies me at the same time, because of a lot of reasons. We both have a great job, we both have substantial 401K investments, etc. But we're both realistic: we both drive vehicles with over 210,000 miles on them, both now live in a house that we'd have to sell, have jobs that could go away, despite how cushy they seem now. All of the positive things that we share now could be gone in an instant...and we're infinitely aware of that. Do we take the risk on this new property and new home? I'm still not sure. But you can guarantee that we'll not make the mistake of buying something that we can't afford to pay back, even if that means that we sacrifice our retirement fund. I would never expect anyone (an individual person or our government) to pay for my mistake in taking on a loan that I could not afford.

 

[chefsteph07]

I hope that for your sake you are never in trouble and you if you are that you find more compassion.

I consider myself VERY compassionate, but I am not going to ask the entire country and generations of children to help me out of my mess either. And I was just responding to the comment about what's different between THIS stimulus and last years.

 

[chefsteph07]

I don't think we should be bailing out anybody (person, bank, or employer). Not a single dime should be shelled out....

People take risks all of the time (expecting their employement to be "guaranteed", buying a house certain that the value will increase, assuming that they will always have good health, etc.). Sometimes these risks work to our advantage, and sometimes they don't.

98% of the mortgages are still being paid on time. The economy can't be *that* bad if the majority of people are still making their payments.

Groceries have gone up a lot in the last year, I have to go out and get some, but I have alot of other bills to pay this week...would someone mind buying them for me? Or can I just go in your fridge and take yours?

 

[esavvymom]

Nice idea, but 250 million times 1 million is more then 250 million!

Duh...yes..You are right. I didn't check his math. forget I said anything...*lol* Long week.

 

[pamperedlinda]

Duh...yes..You are right. I didn't check his math. forget I said anything...*lol* Long week.

I liked your math better....

 

[Kelly8]

I don't think I ever heard anyone ask for someone else to pay for their mortgage. What people asking is a restructure of the loan! Stop being so judgemental!!!

 

[esavvymom]

I liked your math better....

*hehe* sorry about that- the idea sounded so good, I didn't even try to multiply it out, but shoot...even if you DID give each tax payer only $10,000 (that comes out to $2.5 trillion (I think...it's hard to track that many zeroes!)....the stimulus would probably work more effectively than the almost $1 trillion in the proposed and most recent stimulus packages combined.

Oh well, we shall see where the chips fall. Obviously Wall Street isn't too crazy about the fabulous stimulus monies either...course they blame it falling on the job market still looking bad (as if it would have rebounded that quickly).

 

[susanr613]

please keep in mind that this is one of several strategies being tried. it has to work in conjunction with others. A "bunch of people overbuying" is not the sole cause of this crisis, and the package is not designed to help them anyway. It's designed to keep money in the financial system by enabling those that can to continue paying for their houses. From a human perspective, I think it's better for community/national morale to see people in their homes, continuing to strive, instead of neighborhoods blanketed with forclosure/short sale signs. It's also safer - empty neighborhoods are targets for vandalism and other crime.

I am disappointed that some people posting here seem to have no sense of compassion or desire to help their fellow person. This plan is not at all like me going into your fridge and taking your food. It's more like the neighbors rallying to bring food to an invalid, knowing that she will recover and be back out and about one day.

 

[BethCooks4U]

please keep in mind that this is one of several strategies being tried. it has to work in conjunction with others. A "bunch of people overbuying" is not the sole cause of this crisis, and the package is not designed to help them anyway. It's designed to keep money in the financial system by enabling those that can to continue paying for their houses. From a human perspective, I think it's better for community/national morale to see people in their homes, continuing to strive, instead of neighborhoods blanketed with forclosure/short sale signs. It's also safer - empty neighborhoods are targets for vandalism and other crime.

I am disappointed that some people posting here seem to have no sense of compassion or desire to help their fellow person. This plan is not at all like me going into your fridge and taking your food. It's more like the neighbors rallying to bring food to an invalid, knowing that she will recover and be back out and about one day.

I love this analogy!

 

[jrodeo]

Not sure on my thoughts on this yet, I am trying to list the pros and cons...it has so much more to do with than just helping out those who bought more house than they could afford, it has to do with stabilizing a faltering economy.

However, I did tell my son to remind his very negative minded econ teacher the difference between Democrats and Republicans begins in Kindergarten....

The Democratic Kindergartener will share his crayons with his classmate, and the Republican one would tell the classmate to go get a job and buy his own.

This is what the democrat politicians have all the democrats convinced of. If you check the statistics, republicans give more in charity every year, way more than democrats. And the democrats actually have more money than the republicans, so you can't use that excuse. And, by the way, I'm so unhappy with my own party right now that I can't even say I'm a Republican anymore. I'm just a conservative. I think most of the politicians are out for their own hide and couldn't give a hoot for all of us out here in the trenches.

 

[BadGirl]

I am disappointed that some people posting here seem to have no sense of compassion or desire to help their fellow person. This plan is not at all like me going into your fridge and taking your food. It's more like the neighbors rallying to bring food to an invalid, knowing that she will recover and be back out and about one day.

We have compassion, but we've also worked for what we have and didn't over extend our finances. When a Realtor and a Bank told us we qualified for a $450,000 mortgage we stayed small and went with about 1/2 that amount. Seeing what is going on now I wish we did buy the 450K house so you could pay my mortgage.. being that you are so compassionate.

Now that we made the right decisions we don't get a break on our interest rates, nor do we get a break of $8 - 15000 in a free loan. We still have to live in our small house while our neighbor in the 4000 sf house with 4 bedrooms, 3.5 baths a rec room, and a swimming pool has his hands out for MY money so he can renegotiate his loan for a lower than prime rate AND get a free loan (that he doesn't have to pay back) so he can afford the house he shouldn't have bought in the first place.

And it's NOT like helping out an invalid. I don't know of a single invalid that got that way by choice.

 

[Crystal Patton]

I think what is needed is a hand up, not a hand-out. But it is a fine line to tell the difference between the two. A line I am not qualified to find, I hope those we elected, as a nation, can.

 

[BadGirl]

I think what is needed is a hand up, not a hand-out. But it is a fine line to tell the difference between the two. A line I am not qualified to find, I hope those we elected, as a nation, can.

California elected the people in charge now.. not the nation.

 

[Crystal Patton]

California elected the people in charge now.. not the nation.

Honey, don't even go there. I am soo with you and that is a WHOLE other bucket of fish.

 

[PamperChefCarol]

Wow! Normally, I don't get too offended by the posts on this site, but this one really did! I understand totally where everyone is coming from in thinking that there is a problem with people buying things they can't afford. My hubby and I are in the mortgage problem. The reason why I am so offended is because we could afford our house when we BUILT it! My husband had an AWESOME job. In fact, I was going to school full-time (student teaching at that), and we were building a house, saving money and traveling! We were doing very well. Then the company he worked for got sued by the union. The company had a choice. They could either pay up the wazoo for every worker they had working for them or rejoin the union. They chose to rejoin the union. Unfortunately, they couldn't afford all the union benefits (we had benefits under the company pre-union, too). So the owner sold out to another guy. This guy decided to quit paying a couple of workers. We went to the union to try to work this out, and they told us that because we didn't pay the dues, they couldn't help us. Their lazy butts couldn't see that we couldn't afford to pay the dues because my hubby hadn't gotten a paycheck. We had another home we were renting. It was our first home that was a dump that we bought extremely cheap then fixed up. How did we know so many years ago that the housing market would crash? Well, we had a short sale on it, and the mortgage company "lost" our file. It just turned up in Massachusetts! I went to school for teaching. Michigan right now has the highest unemployment rate in the nation (over 10%) and the schools are even cutting back on substitute teaching. We are scraping to get through this crisis. So, if it means the government can help us out after they signed that stupid NAFTA agreement which heavily hurt Michigan, then by all means help me out. I just wish that people would realize that there is a gray area out there. Again, we were doing quite well, and we are very smart with our money, but we got hurt.

Another one in the same leaky boat. We did all the right things and bought a house that we could more than afford, the economy took a dive, we lost our business, our savings, retirement, etc and now aren't looking for a bailout, just a hand to hep us through until we can get straight. And it's not for lack of trying on our part, husband has 2 jobs (which is amazing for a man his age) and I have, what, 5? If someone can push the mortage company to lower our rate a bit, I am all for it. I will be dammed if I am going to loose my house, but a little help would sure help.

 

[susanr613]

BadGirl, many people that this plan is designed to help didn't get that way by choice either...just read some of the posts on this board. Unemployment/underemployment and catastrophic health issues can wreak havoc even on a healthy budget.

For example, I had to visit the ER recently. Fortunately nothing was wrong, but I needed a lot of tests. My hospital bill was over $7,000, which is actually pretty light. My insurance covered all but $700, which I am paying off over the next 6 months. I live in a small house, have a small car, and have a full time job plus Pampered Chef. I am aggresively saving through a 401K, 529 plan for DS's college, none of which I can touch without paying heavy penalties. So, if I didn't have health insurance or if I lost my job, I would, all of a sudden, be in a lot of trouble NOT of my own choosing.

We can all find irresponsible, overleveraged people in our lives. Look a little harder, and you'll find the responsible people who got knocked sideways by life.

 

[pamperedlinda]

This thread is going on the ugly side ya'll....please don't go where the political threads went back in the fall. There are friendships here that don't need to be hurt and other 'non-friendships' that don't need to be stoked. Please, can't we have a conversation without the blame-game and petty comments?

 

[jwpamp]

Hey, I for one think that it's a good thing to help each other. Isn't that what Jesus would do?

 

[pampchefrhondab]

Jesus would say, "Though shall not steal."!

 

[jwpamp]

Yes, and then He would forgive them. And let's remember that not everyone who is losing their homes did bad things. Many of them were a victim of circumstances of the economy. Look at Carol and Kelly....it's only my opinion, but I don't think that the "everybody for themselves" attitude works very well and I would certainly appreciate a helping hand if I were in those shoes.Like I said, I am not sure if this whole thing will work, so I don't have an opinion on it yet.

 

[jrstephens]

This thread is going on the ugly side ya'll....please don't go where the political threads went back in the fall. There are friendships here that don't need to be hurt and other 'non-friendships' that don't need to be stoked. Please, can't we have a conversation without the blame-game and petty comments?

Now Linda, don't you know that doesn't seem possible on this site here lately? HA!

 

[wadesgirl]

I didn't read a lot in here but I just wanted to give my story. DH and I met at our last job. It was a company that had been around this area for 40 plus years and right after I started there in 2000 they were sold to a corporate company. DH and I met after I had worked there for 2 years, he had already been there for 8 years. Four months before our wedding in 2006 they closed the company and we were all out of our jobs. Luckily we do not live outside of our means. We both drive really crappy used cars (seriously falling apart) and paid cash for a trailer so we could save for a house one day! Neither of us have alot of debt and have been working to pay it all off before we even get our house. Luckily we were both able to find jobs shortly after being laid off and we still work together. But we now drive 35 minutes one way to get to work (and that's highway traveling from our large town to a smaller town that had jobs). Instead of ignoring the situation and looking for hand outs, we have made things work with what we have. I see his brother and SIL who are living large, buying huge houses, getting new cars, etc and just hope that the day never comes where they loose everything for the choices they made now.

 

[Kelly8]

Who is stealing?! That I take awesome offense to! It's so ironic to me that everyone is so passionate about this mortgage help, yet the government has had federal aide for decades for people who simply don't work! Isn't anybody up in arms over that?! Why are so many people so upset about helping people who deserve it when the economy took a nosedive!?
Carol-welcome to my leaky boat! We can band together and help each other!
Susanr-thanks for your compassion and understanding. Your posts are very well stated!

 

[jrstephens]

yet the government has had federal aide for decades for people who simply don't work! Isn't anybody up in arms over that?! !

I get up in arms about this all the time when I see people abusing it. It irritates me to no end to see someone pay for their groceries with welfare but see them getting into a BMW in the parking lot.

I am all for programs that help people that actually need it but I am totally against programs that help people that made bad choices over and over again without the consequences of them.

Just recently there was a story on the news about the rising cost of insurance on the gulf due to the hurricanes. This one lady was talking about the $34 month increase was going to send them under, all while she is standing in front of her huge two story brick home with a carport full of 3 expenses cars and a boat and a manicured lawn! Can she not see the need to down size instead going on the news complaining about her expenses?

 

[BethCooks4U]

We are talking about our collective money here and that makes us passionate but come on folks! What happened to compassion?

The welfare system was started to help people out of poverty. It helps a lot of people get back on their feet but unfortunately the system is very flawed and some take advantage of it while others don't get the help when they truly need it.

We are not talking about welfare in this instance. There are a ton of hard working people in trouble through no fault of their own. Why can't they get help?

Sure some made stupid mistakes or risky decisions but who are we to judge. That's why there has to be oversight. Someone has to decide who gets the help and they are saying that the money is not intended for those who bought more house than they should have.

Now, the "welfare" that fires me up is the money is given to the rich, the CEO's and other "top" people. They don't need those bonuses when they fail, they don't need tax breaks that they don't pass down to the workers. I think that bonuses and tax breaks should be awarded only for American jobs created. How it works now is they lay off people so they can claim a profit and then they get the bonus - hello? I can't see how they can sleep knowing families are suffering and losing everything so they can get their millions.

 

[ChefBeckyD]

There are (at least) two different schools of thought on this whole stimulus plan - and there is very little ground for meeting in the middle, because the reason we think differently about it is because we have a totally different view of the role of national gov't in our lives.I think the stimulus plan is a bad idea - but because I do has NO BEARING on my level of compassion, or how much I give or serve.
Compassion is a part of my lifestyle - and I believe in abundantly giving back. That does not mean that I have to agree with or support the current stimulus plan.