OBAMA AND THE MORTGAGE CRISIS

How sick are we of hearing the word crisis?

Every day we hear something new with regard to the mortgage situation.  I refuse to call it a crisis because someone has to stop the negative press.  The latest topic is that people in foreclosure will be given help in the form of lower interest rates to hopefully stop the foreclosure bleeding (as of this writing the Fed has not lowered the rate).  Yes, this will help some but not all.  Let’s get real.  A lot of these people should not have been given loans in the first place.  If they couldn’t afford to make the payments then, they most likely cannot afford it now.  We should be letting the markets play out — capitalist economies have built-in recessions and the government messing with this one is just going to prolong the pain. 

A wise realtor said “your home is not mortar and bricks, it’s your family”.  So to say that “everyone deserves a home”, yes they do, just not one that they cannot afford. We have been a nation of instant gratification.  This is our opportunity to sit back and take stock.  Do you need that item or do you want that item.  I know that we need to spend to keep the economy afloat, however, the whole system is out of whack and spending out of control….both in the private and public sectors.  

With regard to the bailout, there are a few things that are going to happen.  You know those bad loans…the Freddie and Fannie ones, well there are 401K and other investment plans that have invested in those toxic assets.  That means that people’s retirement accounts will continue to be a target.  This is unfortunately a “by product” of this mess.  So, the whole country is paying for bad mistakes made by buyers, unscrupulous lenders, investors and politicians. 

There’s a group of people who cannot pay their mortgage (actually about 7-9% of the whole throughout the country).  Some are viable problems….i.e., people who’ve lost their job(s) and people with uncontrollable ARMs and who did/do not understand the ARM concept.  These are the people who should be helped.  I do believe that we need to help in certain instances to keep the “whole” together.  There should be stipulations in this mortgage relief program that exclude people who were greedy and are stuck with 3 and 4 homes bought as investments they can ill afford in the long term.

In addition, people wanting to buy a home have to actually “qualify”.  What a concept!  This whole community reinvestment act is what got us in this mess in the first place.  Who said everyone deserves a home?  It was some politician who thought he knows best.  What happened to saving for a down payment and actually having the income to support the mortgage payment? 

I pay my mortgage every month.  My interest rate is 6%.  I cannot refinance because my value has gone down.  Would I like a lower, more affordable rate?  Sure, but I cannot get it.  So every month I pay….on time I might add.  All these bailouts are going to do is create a lot of hard feelings — we’re seeing it now.  The media is pitting the have’s against the have nots.  This is crazy.  

We are heading toward a nanny state of more and more welfare.  People who honestly believe that they are owed something, without working for it.  It’s tragic what is happening.  As Americans we need to stand up and be heard.  I know I do my part and if everyone called or emailed these crazy politicians who think they know better how to spend our money, we’d make a difference.  

The “spending” bill that was passed should have ONLY provided relief for people in jeopardy of losing their homes due to predatory lending practices and job loss; the first time home buyer tax credit; and tax breaks to let people keep more of their money.  What has happened with the passing of this bill is a travesty of proportions most of us have yet to grasp. 

As a realtor, it saddens me to see so many homes going into foreclosure, but as an American it is sadder still to see our country in such trouble.  What happened to the American work ethic?  Why are we expecting government to take care of us?  Remember, payback’s a b——.  And, I believe we’re going to be sorry that we let the government into our homes.