Details of Obama's Mortgage Plan: Simply Not Fair

So it looks like the new plan is out from the Obama Administration to help slow down the rate of foreclosures. From the top, it looks like a great idea. However once you dig down and put some thought to it, you will realize that it is really just unfair.

The idea of the mortage plan is to encourage lenders to allow borrowers to refinance their mortgages at lower rates. This would allow more borrowers to make their monthly payments and stay in their homes. On top of this the details of the plan also state that for borrowers who make their payments on time, there will be a reduction in the principal owed by the amount of $1,000 per year for 5 years. Sure this will be great to those people who are having trouble paying their mortgage and don't want to lose their homes. However this comes only at the expense of those who don't hold a mortgage at all, hold a mortgage but aren't having problems making payments, and those who don't own homes. Why should these people who were "stupid" in making decisions by buying a home they could not afford be bailed out? What about those people who have lost 50% of their retirement savings in the stock market, or who have seen their businesses go under because of the terrible economic conditions? What about the 10% of people unemployed in California that don't own a home, or own a home outright? All these people will have to pay to help those with troubled mortgages. Where is the help for these people? The responsible people who didn't buy homes they could not afford?

The details of Obama's mortgage plan need to be heavily scrutinized, as it is the well being of the nation at risk here. Why should we help a group of people who bought homes they couldn't afford, while making others that lost 50% of their money in the stock market pay for it?

It's easy to see that there are plenty of Americans struggling in other areas besides their mortgages, simply by visiting online forums like The Investment Forum on Talkgold Everyone wants a bailout from the government, but their really isn't a feasible way of doing it.


Unbelievable!!