They Call It "Private" Property for a Reason

[...] across another angle on this dire example of home economics courtesy of Brian Sullivan’s blog. The Fox Business anchor, whose show I visited in October, tied the homeowners’ plight to [...]

One of the best posts and accompanying comments that I have read for a long time. I dont think the designated hired gun obamanation bloggers have found this thread yet to do their usual trashing and socialistic comments. I am sure they will show up soon.

I have just a couple of questions: 1). Will the government actually foreclose on the mortgage of a registered voter? 2). If not, why should any deadbeat er, distressed homeowner even bother paying the government rent? 3). what effect will this have on his neighbor who is up to date on his/her mortgage and therefore, doesn't merit the governments largesse? Oh, I forgot the neighbor is supposed to feel relieved that at least the neighborhood isn't goin to hell in a handbasket. 4). But wait, what if the distressed homeowner stops maintaining the home with the new cut rate 40 year fixed rate loan he/she isn't paying anyway. won't the neighborhood go to hell any way? Won't the American countryside be littered with millions of individual Cabrini Green housing complexes? 5). Finally has anyone considered how this will effect future homebuyers? Will there be any? Or better yet, why would there be any? Why should future homebuyers pay a higher mortgage in an inflationary environment when their 'distressed' neighbors aren't paying anything on their cut rate government loans?

YOU HAVE HIT THE NAIL ON THE BEAK, ED.....TNWO IS ABOUT TO CONVERGE ON US...WAIT TILL THE GOV'T IS REALLY IN OUR FACES AND BANK ACCTS...U HAVEN'T SEEN ANYTHING YET....STOCK PILE YOUR AMMO AND SHOOT STRAIGHT....

I went to the track the other day and lost a bundle betting on the ponies. Where is the form I fill out to get my part of the Bailout? Also, my head feels terrible from all the booze. Can I charge off the aspirin as part of the Bailout too? Under 'expenses'? or do I have to wait until the government starts paying for all our medical costs? What is the big hold up on that?

[...] very blurred. Here's an article slamming this idea (by a Fox Business News commentator no less).They Call It “Private” Property for a Reason at The Brian Sullivan Blog [...]

If they can say you paid to much and take away the money from the sellers and motgage holder, why of course they can say you did not pay enough so you will have to pay more..............AND GUESS WHO WILL GET THE ADDITIONAL MONEY. Who owns the mortgages.......THE GOVERNMENT!

If we allow people to come in and re-write mortgages down, how long do you think it will be before some-one decides that means you can also increase the amount you for which you contracted. Not possible? You want to bet!

Look folks... this is a bad situation that started in 1999 with the Clinton administration. However we got here, we are here. There are lots of problems now, but the single problem fueling all others are the bad mortgages that are defaulting. We have to eliminnate them... not move these bad assets from one company to another... eliminate them. Refinance the mortgage loans. Defaults will continue to increase and peak in 4th quarter 2009... and stay near the peak for one year... declining in 2011. The option arm mortgages are taking over what sub-prime started... option arms recalculate minimum payment amounts every five years... loans originated in 2004-2006 will recalculate minimum payments in 2009-2011, payments will double (minimum)and triple... all of these loans are under water NOW as when initiated the average loan-to-value was 90%. People will walk away fast... also, option arms are far larger in loan amounts than sub-prime. WaMu and Wachovia say 15% of their mortgage portfolio is bad (will default)... the two companies mortgage portfolios are full of option arms... the number of these loans that will default is closer to 85%. The mess we are in doesn't go away until the bad loans are gone, not moved, gone! McCain has his finger on the real problem!

Is this the... "New World Order"?

Carl is right on! My wife and I play by the rules. Our home is not worth what we paid for it... but we keep making the payments and have not overspent. What ever happened to rewarding good behavior and punishing bad? We want to move. Give me the difference in what I paid and what my home is worth now and I would easily have a 30% down payment on an affordable house. REWARD THE PEOPLE WHO HAVE ACTED RESPONSIBLY. DON'T CONTINUE TO BAIL OUT THE STUPID!

That is right, the bill passed has in it the reworking of mortgages for the public as one of its goals. It is amaxzing how the news commentators have no idea what was just passed by the congress. But then I doubt the average congressman knows what he voted for. My big concern is the wording that the Secretary can buy any asset he deems toxic, including mortgages on commercial property. The American taxpayer is going to own a bunch of vacant office buildings. Now if congress was smart they would make the different departments close their current office that we pay for and move into these vacant buildings for free. (we already own them so there is no sense in charging ourselves market rents), but we know that will never happen. I'm still lost as to where we are going to spend the 1 trillion that the congress has authorized so far when less than 3% of mortgages are in default or about 360 billion.

Business operates only if it feels that its deals or contracts will be honored or enforced. Contractual law is rapidly becoming worthless. Would you sign a busness deal for millions if you knew that the courts or government can come in and re-write the terms you negotiated and agreed to. You sign a contract to sell ahouse for $100,000 and a year later the courts say you should only get $60,000. Forget fairness, forget contractual responsibility, think of the tax nightmare trying to determine your lose or gain.

Let's also look down the road a ways. It is my understanding that the rationale for this (at least from the Republican perspective) is that, when property values begin to rise again, the properties will be sold at a "profit" to recover the taxpayer funds used to purchase them initially. There are some pretty sizable assumptions underlying all of this but let's add one more and assume that it all happens as the politicians expect and at some point the revenue from the sale of those properties begins to flow back in. If and when that happens, will Congress use that revenue to pay off the debt that had been incurred? Or will they, as they have done with nearly every other stream of revenue that came their way, use it to fund whatever the current pet project is? Any bets?

They have a plan - ever increase the taxes on those that have and give to those that don't. When that fails,just devalue what they have to nothing. Let's call it what it is - It's pure Communism! Bet you thought we won the cold war! Lincoln was right - it will spring up from within.......

Where can I schedule some slots in these time share properties that we now own?

Gary is right with his comments. I think things are a lot worse than they are letting on. I wish they would just leave it alone and let the market work it out on it's own, in the end it will do just that anyway. Too bad by that time, even the financially responsible savers in the country will be wiped out due to the higher taxes and the outrageous inflation that is sure to follow these bailouts. The USA is bankrupt. We may be able to continue business as usual and pretend it isn't, but our children will have to face it in their lifetimes.

Just amazing...like others I heard McCain say that, and thought, 'Isn't that what was enacted last week?' My, oh, my! In my list of 'if-onlys': If this mess had broken open last January, would we be looking at these two candidates for President? I don't believe so. I miss Fred...he's a grown-up. We will need one in office, and we can't get one now. Everybody pray daily for whoever wins--he will need all the help he can get!

So what about me - my home is worth less than I owe, but I work and make my payments and stay out of default because I understand the obligation I made when I purchased it. So the mortgage is not in default or otherwise tainted. So will I be able to have Uncle Sam rewrite my debt at the new worth of my house? Will this only be available to those in default? What if my home has lost value but I am not (yet) underwater on it? I miss out on the handout because I've been doing the right thing by paying down the principal quicker than most? Seems like a massive plan of wealth redistribution with no benefit to those people who behaved prudently during the years of excess. It's easy to blame the mortgage industry, big business, etc - but at the end of the day, it is the individual that should be responsible for their own actions. If you as an individual made poor choices in the house you purchased, the amount you mortgaged, the equity line you abused - why do you "deserve" a bailout and not me?

That could be the straw that breaks the home industries back. The Government wouldn't own the homes just the losses, the home owner and mortgage company would keep what is left of the devalued house. It seems to me that the banks will never be motivated to rework mortgages on their own if the taxpayer will come along and eat these losses for them.

While we are bailing everything out, lets bailout casinos if someone wins against the house. To me that is alot like Wall Street. I agree with you. It gives me a sick feeling hearing bailout after bailout. They say that heads are going to roll for CEOs, I'll put my money on "More of the SAME"

First time I recall having no republican candidate in the race. McCain is a democrat wearing a republican name tag. Obama is a liberal democrat. Time has come for many changes starting with term limits. Our representatives are just too cosy with lobbies and power brokers. One term of 4 years for both the upper and lower houses which would also eliminate them spending half their time focused on re-election. I also think congress should be entitled to the same social security and medicare as the people. Time to have their handsome package of benefits repealed.

The administration has no incentive to make it sound worse than it is--quite the contrary in election season. Face it--things are a LOT WORSE worse than currently perceived!

I agree with you completely. But this isn't the United States of America anymore. There is no such thing as "Private Property"!! Just ask the United States Supreme Court!! The home you think you own is controlled by the town, city, or state!! NOT YOU!! With all the zoning laws, environmental laws, and building codes required for you to use the home you pay for is just the way the government controls you and your so call property. If the government doesn't like you or your home they will just condemn it or claim eminent domain over it so they can steal what you've worked for. This theft is justified by saying that it will increase taxes by stealing from you in order to give it to some big company for a political donation to those in charge!! What we see today is just the next step in creating the new Socialist States of America!!! Thank You for trying to stop Comrade Hamilton spinning in his grave, but his dream died a long time ago!!!

I agree with you too. I think that we need to get back to the real American Dream. That includes home ownership for those who have saved for a down payment, have a steady job history and have good credit. Home ownership should be something that we work for--and not a "right" for all. I think that once you contract to purchase that home, you should honor that contract. In honoring the contract, I believe that Americans should be encouraged to contact their lender and offer to work out their payments. It has become way too easy to just walk away from the responsibility.