" More than 1 million borrowers may be at risk of defaulting on their mortgages. Assisting them all wouldn’t come cheap.
Want to pick up the check for every homeowner who got saddled with a risky mortgage? It’s a big one - on the order of $120 billion.
Lawmakers and consumer groups in recent weeks have been calling for assistance for those at risk of defaulting on their mortgage. …"
**I just can’t understand why the people who lived in smaller house because they understood the complications of getting into these interest only loans, pay for the luxury of the people who got these loans. Why should my tax money go into paying for this? **
the interest only or low interest ARms etc were rsky, we were talkign just a few years back on this very forum that if ppl are going into interest only loans and market backtracks then they will have an issue, or when the ARms adjust upwards and ppl cant get rid of homes.
I wondr what is teh case with th heavily keveraged folks who were into the business of flipping properties and are now holding on to them much longer due to the soft market.
I agree, tax payers shouldn't have to pay for people's mistake. I am actually not in favor of Feds helping out people who despite clear indications, build houses in flooding prone regions. I am not talking about those who build it out of necessity because the land is cheaper (9th ward, NO) but those who build these multi million dollar houses where flood had washed away their home twice before.
We can figure out a way to help out the poor ones and let the 'market speculators' take the bullet. Something like where we help people who are about to lose their primary house of residence and cap the house value to some regional mean home value parameter.