A month ago, the State of Connecticut launched a plan to help the poor subprime borrowers out there. I was upset then.
Now, as I’m sure anyone reading this already knows since I’m a few days late, the Federal Government is following suit.
And yes, I’m still upset.
The lending companies gambled by lending money to people who couldn’t afford it. Subprime, adjustable rate, call it whatever you want. The fact is, they loaned money to people who couldn’t afford it. In a lot of ways, they deserve what they’re getting right now.
On the flip side, there are the borrowers. President Bush calls them homeowners. Homeowners who shouldn’t lose their homes. Homeowners we all should feel sorry for. Homeowners that people like you and me should bail out.
But that’s the thing. These “homeowners” took a gamble too. And you know what? They lost.
If the homeowners can’t afford the new adjusted rates, or weren’t wise enough refinance, well, they lost. If the mortgage companies made poor decisions and chose to loan large sums of money to people that they knew couldn’t afford it, well, they lost too. Plain and simple. Sucks to be them. Both of them.
But now the plan is for my tax money to go to bail these “suckers” out. Another blogger, I forget who, said that people who went the traditional 30-year fixed route should get some sort of tax credit or something. I couldn’t agree more.
I took out my loan in September of 2002. Just over 5 years ago — right when all of these “teaser-rates” started being advertised so heavily. I looked at it and knew that it was a gamble. A gamble not worth taking.
I pat myself on the back for my decision 5 years later. It *was* the correct move. But now, the carpet is being swept out from under me. I should have gone with an ARM. I’d have more money in my wallet today — and as the President is planning, for another 5 years to come.
We, who went the 30-year route, played by the rules, paid a little more on our mortgages, and then got screwed in the end. That’s messed up.
Further, this is just delaying things. Okay, fine, the folks in this situation may get another 5 years on their mortgage rates. But what then? It’s inevitable — they can’t afford their homes. Deep down, I hope finally get what they should have had coming this year.
I guess I just don’t like it when losers take advantage of the system and come out winners. But it seems that’s the ‘new’ American way…