One more thing, if people can’t make their payments because of their own irresponsible behavior, they should lose their homes. At this point, many of them could give a rodent’s posterior what their credit looks like.
Expecting people to be responsible for themselves is what Conservatism is all about. It doesn’t matter what the bank does privately, that’s just good philosophy in life. I naturally accept what I can’t control, it’s stupid when someone suggests, otherwise. It still doesn’t mean I’m not entitled to complain, as you suggested.
I always said that this program would help a few deserving people, but it won’t be enough and the cost of doing that will be too high.
“One more thing, if people can’t make their payments because of their own irresponsible behavior, they should lose their homes”
Is losing your job irresponsible? Why should your opinion be considered on a private business transaction of which you are not a party? Not everyone in this situation is there because they were irresponsible. Perhaps you haven’t noticed the unemployment rate recently.
“I always said that this program would help a few deserving people, but it won’t be enough and the cost of doing that will be too high.”
What cost? All they are doing in most cases is renegotiating the contracts. They are taking the amount the person is behind and adding it to the back of the loan. All fees, taxes, interest, and penalties are in there.
Other than the cost of a bunch of govt employees acting like they are doing something the only cost is to the bank and its investors.
But lets consider the costs of foreclosure. A foreclosed home will bring in 60-70% of any other home. Of course there are so many foreclosures they drive the rest of the home prices down. So the house sits empty for 6 months. Meanwhile its not maintained and becomes an eyesore. Then criminals move in and start stealing stuff. Of course the cops don’t care because its bank owned.
So now the value is down even more. So how does foreclosing save money or provide a bigger return for the bank?