Did you see this bit of news this week?
The Obama administration on Tuesday will launch its most ambitious effort at reducing mortgage balances for homeowners who owe more than their homes are worth.
Officials say between 500,000 and 1.5 million so-called underwater loans could be modified through the program, the first initiative to target homeowners who are current on their mortgage payments but are at risk of default because they have no equity in their homes. Some experts are warning, however, that the same knots that tied up prior initiatives could do so again.
Yes, you read that correctly. More and more Americans who did not require (nor ask for) help from the federal government to lower their house payments are getting kicked to the curb, President Obama proposes yet another measure to help keep people who cannot afford their homes, in them.
So let’s see if I understand this correctly.
A family (like mine) who works hard, pays all their bills, applies for a refinance without government assistance, and does everything “right”, is served notice that the bank is calling the note and foreclosing on their home.
Yet, a broker helped some moron buy a house he couldn’t afford so the government takes steps (earlier this year) to “modify” that loan into a lower interest rate, and now, since the value of all homes are still falling, they are going to work with him to write off the amount he is underwater?
Now I know what I did wrong. I never begged the government to pay all my bills and to take care of me. That’s why we’re losing our house. It’s all so clear now.