Mortgage Crisis: 20% of Borrows Owe More Than House Value
March 4th, 2009
Can someone please explain to me why this matters? These people bought their homes at X, and now their homes are worth less than X. If they are allowed to refinance at the current value, their equity will shoot up when the marketing comes back to life.
100% (fake stat) of people that finance cars owe more than their cars value. The only difference is the car value will not go up, but the house value will. Hell, I owe more on my car than it’s worth. Where is my government bailout? I want my cheese Obama. I’ll take cash, check, paypal.
Billy,
I agree with you 100% It is terribly unfair.
Having said that, I will offer you what *I* think of the reasons… (since you asked :))
I think there are situations so fucked up that you have to walk through shit to get to the other side. This is a universal truth. I think torture is sometimes necessary (even if not of the prisoner, but their family). It is ugly shit no doubt. But sometimes the end justifies the means.
I think and hope, that the reasons we’re bailing out the people we’re bailing out is to walk through the necessary shit in order to keep the fucking boat from sinking so we can get to the other side.
It is not fair to people who are responsible, it is not fair at all. But it may be a necessary evil.
That’s my opinion. It doesn’t make it right.
@Tom Kruk
A think a viable solution is to allow easy transfers of mortgages, so that people that can afford the monthly payments, can get into homes.
For example, I can easily swing a mortgage of $2k/month, however, I just lack enough funds for a downpayment. A year or two ago I could have easily gotten a loan with zero down, but I was a responsible adult and didn’t go for a zero down or ARM loan. Now, people who had no business getting into a home, will get help to keep their homes, while people like me that can afford, can’t even get near to owning a home anytime soon.
I am in exactly the same position as you. Obviously life is not fair.