New York Democrat wants funds to help subprime borrowers.
April 11 2007: 3:35 PM EDT
NEW YORK (Reuters) -- The federal government should offer troubled borrowers hundreds of millions of dollars to bail them out of subprime mortgage loans, several leading Democratic lawmakers said on Wednesday.
"The federal government can send in an infusion of [money] to prevent foreclosure," said Charles Schumer, a New York Democrat.
The cash infusion is needed right away and should go to both help fund community groups aiding troubled borrowers and to directly fund bailouts, Schumer said.
In the beginning of 2006, I almost bought an over-priced townhome. However, I did a budget and the remainder of my dollars would have been too thin to do anything else but sit in the townhome. I could have BOUGHT the place, but I could not have AFFORDED it. So I begrudgingly passed on it. I was sad and every time I drive pass the place I shake my head thinking about what could have been. Soon after I learned that new construction is taxed differently than pre-existing homes. This difference would have sunk me. Now there are 3 units for re-sale asking 50 grand more than the price I passed on. They are just rotting away.
There are many sites and blogs online that detail the problems that a bail out would cause. I will not get into those details here. My opinion is very straight-forward: I used my brain and did not get caught in the trap. Therefore, I will say that certain people should not be bailed out by MY TAX MONEY. Those people are:
* Anyone that LIED about their income or employment on a home loan application.
* Anyone that GAMBLED with the ARM because they wanted to 'Flip that House'.
* Anyone that was too DUMB to realize that you can't afford a $500,000 house on 50k income.
Those people SHOULD NOT GET BAILED OUT. Tough bananas! The Market needs to take them over its knee and give them a royal spanking. Then send them on their way.
Below are links to elected officials in the area. If you also believe that these people should not get a free pass, click on these links. Inform your rep's that you also do not want liars, gamblers and degenerates to be bailed out.
Contact President George W. Bush
Contact Senator Dick Durbin
Contact Senator Barak Obama
Contact Senator Charles Schumer
Click here to find your US Rep
Thank you.
6 comments:
Way to go! Let's keep encouraging folks to write to their elected officials and let them know "No bailout!"
Link to my story, with sample letter from patrick.net
I did this a few weeks ago. No replies (not that I was expecting any). I did manage to speak to one of Dodd's people which was impressive compared to being immediately placed on hold by a machine when I tried to get through to Hillary.
I'm in St. Louis which is another town supposedly not affected by the bubble. It is interesting to note that many houses that sold for 75k in '01 were going for 150k in '05. Inventory has exploded here and some of those gains are slowly but surely going away. Nice to see a midwest related bubble blog.
this will be a hot election issue to be sure. i was up in wisconsin the last couple of weeks and saw many for sale signs in the dells and the further north snowmobile/hunt areas. i also see more toys for sale. people are begining to feel the pinch and starting to liqidate.
Anonymous said...
I did this a few weeks ago. No replies (not that I was expecting any).
*** Yes, having the correct expectations will help you.
I'm in St. Louis which is another town supposedly not affected by the bubble. It is interesting to note that many houses that sold for 75k in '01 were going for 150k in '05. Inventory has exploded here and some of those gains are slowly but surely going away. Nice to see a midwest related bubble blog.
*** Thanks. I was very annoyed that the experts claimed Chicago, St. Louis, Milwke, et al "were not affected". When housing prices double and out strip the growth of incomes, we are all affected.
I believe we are all being impacted by the housing bubble and it's unwinding. I have just sent off letters to my Reps. and the Presendent. Thanks for the links and the blog!
Sent messages to Durbin, Obama, Schumar & Roskam.
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