Comments on: McCain’s Mortgage Buy-Up: Madness or Genius? (Updated)

By: brad

brad — Thu, 09 Oct 2008 05:40:46 +0000

If you think that’s bad, I read somewhere earlier today (I can’t remember where now, but if I do I’ll add the link later) that some of the areas that were being hit the hardest by property values falling below the mortgage amount, are the same areas with huge amounts of investment properties that are sitting empty. The example given was a suburb in Florida, where people had bought the homes, not to live in, but to flip for a profit later, except they got caught by the bursting of the housing bubble.

So it isn’t just the irresponsible ‘poor’ that bit off more than they could chew who are being bailed out; it’s also those wealthy enough to buy a second (or third) home who will likely benefit.

By: Judy

Judy — Thu, 09 Oct 2008 05:30:12 +0000

I turned down the opportunity to buy a home years ago for me and my two sons after my husband left us. I cancelled the deal because when the realtor told me the Adustable Rate Mortgage rate would go up over a certain number of years, I couldn’t be sure my salary would go up enough to cover it.
I’m still living in an apartment and doing my best to make ends meet.
I didn’t cheat by reneging on the deal as soon as the mortgage rate went up like a lot of the homeowners we are supposed to pity, who honest tax paying, frugal, citizens are now forced to bail out.

By: Artbygem

Artbygem — Thu, 09 Oct 2008 01:51:31 +0000

OK, I think I finally get it. I have a $500,000 mortgage on a house that is now only worth $300,000. When I originally purchased my home, in 2003, I put down $100,000 which was all of the equity I had earned from paying the mortgage on my previous home for 15 years. Of course, that money is gone now…lost forever in the devaluation of my home, but in the 5 years since I bought my home I have never missed even one of my $1850 a monthy payments. Sure, it’s been tough sometimes, but we’ve managed because we thought it was the right thing to do.

Then yesterday, my illegal alien neighbor comes over for a visit, hands me a beer, and shares his good news, that HIS $500,000 mortgage is going to be refinanced by Obama or McCain’s mortgage buyout plan and HIS payments are only going to be $950 a monthy! He was so happy! He said he was going to go right out and buy a new van! He also said that his employer was going to be forced to pay for insurance for himself, his boyfriend (I live in California), his 8 kids and his kid’s mamas, too!

He just kept shaking his head and saying, over and over again, “God Bless America!” What a happy f–king day!

By: brad

brad — Wed, 08 Oct 2008 23:11:09 +0000

Gasp! A liberal, here!

Just kidding; welcome.

My understanding is that the plan is for the government to renegotiate mortgages on an individual basis, reducing it to the houses current value (instead of, say, a $200,000 mortgage on a house now worth only $150,000). The point of the plan is to avoid getting to the stage where there is an actual default and foreclosure.

The theory is that this would actually help to prop up home values, rather than depressing them.

I think the theory is relatively sound, but unfortunately its success requires the government to be both competent and trustworthy, in an area where the government does not have much expertise (assuming a bureaucracy could handle it at all) and where there is a lot of potential for fraud and abuse.

By: Lisa

Lisa — Wed, 08 Oct 2008 21:52:25 +0000

Hey. Hey. Hey. I’m one of those liberals and I found your article as I was researching just “how” this deal was supposed to protect property values. Personally, I think this is an awful idea. My mortgage is current (I stay 3 mos ahead) and I’m more concerned about the value of my home declining due to foreclosures around me. If the govt did buy these mortgages from people falling into foreclosure, are they purchasing the existing note? are they restructuring the note at market value? or are they doing a discounted “fire sale” price?

It seems to be that this would bring my value down even more than the nominal value.

By: Honcho

Honcho — Wed, 08 Oct 2008 16:26:39 +0000

I didn’t know McCain had $300 billion!! :0

He means to do this. McCain is all about Big Gov. he touts at least as many spending programs as Obama.

What really sucks about all these bailouts, is that they will hurt the economy while house prices of political clients, (the poor, immigrants, minorities…call them what you will) are kept high.
So when you job is lost and you are expected to live on your retirement savings at 40…you won’t be able to afford a house, and you have the misfortune to not belong to the sad-sack entitlement class. But that’s not important because your not the New Base of both parties…. people who depend on federal entitlements.

Get a stick, call it a cane, and head for your local Social security office! Permanent Disability! The New Middle Class.

But why doesn’t McCain understand this stuff? The honest answer is McCain has never had to worry about money. He can’t understand why we all don’t shut up and go out and marry rich heiresses.

By: James Jarvis

James Jarvis — Wed, 08 Oct 2008 11:35:58 +0000

It’s an awful plan.

Why pay your Mortgage?

How will home prices stay high when they will plummet to levels the poor can actually afford?