There is a smug self-rightousness in America that says they should not have bought a house they couldn't affort. These homeowners that can't now pay their mortgages have become the bad guys to many. Think again.
Imagine being offered the chance to own a home --- something you never thought possibe. A place for you and your family. Sign the dotted-line. Can you pay this much a month. Sure no problem. Of course, this is the wrong question. The real question is, can you afford this new payment in a year when your ARM mortgage goes from x % to 2X or 3C % rate. Oh yea, please read the fine print. Besides, in a few years when things change, life will be better, your job will be better, so don't worry about it.
Who was the bad guy. The person wanting to buy a home for his family ... the guy trying to live the American dream, or the one that gave him the false hope.
One of the biggest challenges in helping those in trouble with their mortgage is the belief by many Americans that they do no deserve any help. Well guess what. They should have been smarter, they should not have let their dreams cloud their vision. But, now helping them helps save America, not helping them lets America keep sliding down the tube. And, who would you rather help, the Executives at the bank that take the government handouts and then give themselves a bonus, or the common man trying to stay in house and keep his life together?
To me the only question remaining is this ... can Congress make a package to save these mortgage holders that is simple enough to work? Keep it simple. If you have a mortgage that is valued higher than the estimated value of your home, you qualify. If you qualify, you get a 3% loan on the estimated value of your home (from 3 estimators). That's all. It has to be that simple to work.
Or we can keep watching the water spin out of the tub.
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