I Did Everything Right. Why Should I Bail Out My Neighbors?
February 18, 2009 3:22 PM
You did everything right. You worked hard, saved up, played it safe, bought a house that you could afford. Perhaps you even bought a house you could afford if you lost your job. You've made your monthly mortgage payments, month after month.
You grinned and bared it when neighbors gloated about their bigger homes and the incredible appreciation they were enjoying. Now that "neighbor" is in trouble. Home values have dropped, people have lost their jobs, and your "neighbor" can't make the monthly payments.
To the rescue comes the Obama administration. To the rescue of your neighbor who's having trouble making their mortgage payment. The brand new housing plan will send money to banks to entice them into making it easier for for people to make their payments. Homeowners will even get money in return for doing what is right -- keeping up with their payments.
That's right, simply keep up with your responsibilities and the government will knock a $1000 off the total amount you owe on your house.
The argument for why you shouldn't be boiling mad right now? Everyone will benefit because today's actions may result in cheaper mortgage rates. ..yea but come couple of years the trend will start again with cheaper mortgage.. every Tom Dick and Harry will be buying a house again.. And everyone will benefit from a rule change that will let you refinance your mortgage to take advantage of the ridiculously low mortgage rates these days EVEN if your home is now worth less than your original mortgage. ..I cant find myself to agree with this guy..what if you already have like lowest of the lowest interest rates.. then how can you benefit..
And finally, if your neighbor is foreclosed on and the house is emptied that's going to hurt your home value. ..i am in disagreement here as well.. ok my house value will drop but not that drastically.. cuz housing market in NY is very stable.. even with all the those foreclosures.. the prices havent shifted as badly as they have in the TX, CA and FL... so i this doesnt answer my question..
So, if you're not in trouble with your mortgage -- how are you doing today with all this?
Kumkum Bhagya
