Thursday, September 25, 2008

Loan Modification Provision

Aaarghh. RepresentativeMaxine Waters, on Fox News, just said that the part of the bailout that was just agreed to is a "loan modification provision." My worst fears have come true.

Waters is concerned that people with a $3000 per month mortgage, who now can only afford to pay $2000, need to be able to get a mortgage reduction through this bailout.

Where is the personal responsibility? Now we are rewarding people who are unable to pay their mortgage. What are we saying to people scrimping and saving to pay their mortgages on time? 

If this is becomes law, heads need to roll. Over the last 5 years, as homes were increasing in prices, there were many who watched their neighbors overextend themselves, purchasing the latest big screen television, hot tub, pool table, Nintendo Wii, the latest SUV, and a host of other extravagant purchases, living way beyond their means by buying and refinancing homes that they could not afford.

Rewarding this behavior punishes those living within their means. This is immoral and should not be open for compromise.

Let me remind you of how compromise works. If a person wants to take all of your money, and you don't want to give up your money, a compromise means you gives up half of your money. My point is, there are good ideas and bad ideas. One should never compromise for the sake of compromise. A bad idea is always a bad idea. 

And rewarding people who overextended themselves is a bad idea.

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