John McCain's mortgage pander
I don't like to get into politics on here, but I couldn't ignore John McCain's vote-buying suck up to home owners in last night's debate.
In an otherwise pretty solid performance, McCain talked about the government refinancing mortgages to reflect declining home values. He claimed he was saving seniors, who, lo and behold, vote in disproportionate numbers.
Leave aside the fact that such government intercession is already part of this summer's housing rescue package. Leave aside the fact that seniors, thanks to good habits and a reluctance to relocate, have been hit less by foreclosures. Aside from all that I confess I'm sick and tired of government sucking up to irresponsible home buyers.
Let my own home buying experience serve as an example. Regrettably, we bought near the top of the market. We needed a larger house for our growing family. The house has fallen in value $100,000, but since we put more than $100,000 down, we're still not "upside down" on the mortgage.
Wouldn't it have made sense, apropos of McCain, for us to have used most of our down payment for European vacations, cars and boats? Then our mortgage today would exceed the home's value. Voila. We'd be instant victims ripe for a "rescue."
You get my drift: These suck-up plans reward the profligate. If home owners can cut deals with the banks to lower the principal on their loans, more power to them. But why should the government bank roll what in many cases was a consumer orgy?
(Un)Real Estate offers a peek at the housing market usually reserved for insiders. While it focuses on the Tampa Bay area, it won't neglect dipping
into the rest of Florida and beyond. Its goal? Simple: To help you keep a roof over your head without losing your shirt.
I confess I'm sick and tired of government sucking up to irresponsible home buyers.
James, I could not agree more with your statement! Your personnal example only underscores the importance or the 20% or more downpayment.
There were many who posted on this blog site the past two years bragging about how they bought a home with only 3% down. However, not many of them are talking about their experience today as they are upside down and now financially trapped.
Posted by: Fuzzy Bear | October 08, 2008 at 12:49 PM
Hear hear, James!
Posted by: Alex | October 09, 2008 at 08:26 AM
James, you are a class act, please run for office.
Posted by: Brian | October 09, 2008 at 10:59 AM
Amen! Although I get the distinct impression that the choir are the only ones sitting in the pews here....
Posted by: Grant | October 09, 2008 at 03:11 PM