Taxpayers Furious About Bailing Out Foreclosure Victims
The ordinary American – the taxpayer – is furious about bailing out foreclosure victims. The government however did not consult them when committing their money to bail out those who had failed to keep their mortgage commitments and were facing foreclosure. Taxpayer’s dollars – billions of dollars are being used to guarantee loans through FHASecure and Hope for Homeowners and refinancing. The taxpayer’s views were not taken into account when Fannie Mae and Freddie Mac launched on a new ‘streamlined modification programme.’ Reports are coming in that money allotted for TARP will be similarly used.
Those taxpayers, who did not buy during the housing boom, were not tempted by dubitable deals and those who remained steadfast in paying their mortgage dues are furious for being sidelined. They never spent beyond their means and yet it is their money that is being used to bail out those who did.
Jay Black is a tenant in Queens, New York. He angrily comments, “All these idiots who bought homes they couldn’t really afford are going to be rewarded with loan modifications, but what about those of us who didn’t make stupid decisions? I could have purchased two years ago using an option AM, and now the government would be paying to reduce my balance. But I didn’t. What the hell do I get?”
Alice English lives in Highland Falls, New York. She too is furious. Alice used to annually earn $45,000 but did not purchase a house. She bought a mobile unit because of her budgetary constraints. She never opted for anything she could not afford. But suddenly her financial condition has worsened because of job problems. Now she may lose her home for lenders have no time to talk with borrowers who have no income. English is angry beyond words as her credit ratings are going out. She bemoans that the government is going to bailout big companies and the “idiots who took an ARM who knew they couldn’t make those payments.” But she is left forgotten without a job, or help while “billions are going to help those who created this problem.” The foreclosure victims are being bailed out because of the far-reaching consequences of foreclosures Delinquencies have shot up to astronomical figures causing house prices to tumble. It may be unfair to help some house owners while ignoring others but there is no other alternative before the policymakers and administrators. This is the only way the economy can be prevented from falling further.
