Thursday, August 9, 2007

HILLARY DEMANDS A SUB-PRIME BAILOUT

Pandering to the soon-to-be-foreclosed, Ms. Clinton is calling for a billion dollar federal bailout fund to assist those home buyers that did not understand ARM is an acronym for “Adjustable Rate Mortgage” not “All Right Man”!

Yes, I know it’s misspelled, but I’m upset.

The New York senator's proposal includes a $1 billion federal fund to help homeowners avoid foreclosure, an end to prepayment penalties and more affordable housing options.”

Is it the taxpayer’s responsibility to ensure that sub-prime borrowers make their mortgage payments? I don’t remember being consulted before any of them signed the loan papers.

Is there a time limit on this “avoid foreclosure” idea, or do we just pick up the tab for those in trouble for the next thirty or so years? And what does “more affordable housing options” mean, surplus Katrina trailers? More affordable housing is an option that should have been explored before the loan papers were signed.

Could this billion-dollar fund also be used to help people who are at risk of losing their homes because they lost their jobs, or were recently widowed? Probably not.

It’s unfortunate to lose your home to foreclosure (or anything else for that matter) but sub-primers shouldn’t look to the federal government to pay their mortgage…and Hillary shouldn’t troll for votes in this manner. The American taxpayer should not be expected to act as a safety net for high-risk homeowners.

The problem here is not really the “predatory” lenders. Of course these companies are aggressively recruiting customers, but they are not deceiving these high-risk borrowers. The contractual obligations are spelled out, the numbers listed, and one would hope, the conditions understood and accepted before the pen hits the paper. The alternative to taking on a sub-prime loan is not living on the streets, it is paying rent.

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