Monday, January 23, 2012

Let's see... I didn't overborrow to buy my house... I didn't overstate my income on my mortgage application... I didn't buy my house at the height of the housing bubble... I didn't make a zero down as a down payment... I didn't take all the equity out refinancing... I didn't go for one of the interest only mortgages... and I didn't stop making mortgage payments when the value of my house dropped...

And today I find out that a whole bunch of those who did are not only going to get their principal reduced, they're also going to get a mortgage rate that is lower than the rate I just refinanced at.

Just how does this reward those who play by the rules? How does this not reward those who broke the law and/or took on too much risk? Millions of play-by-the-rules homeowners will wonder why they didn't drain the equity out of their house and why they kept making payments for the past three years.

How does this help fix the housing market? Allowing people who can't afford to stay in their houses does nothing to establish an end to anxiety over further drops in home values.

And Obama wants me to cheer when he includes this in his speech tomorrow night?

Not a chance.

Let's see if any of the GOP candidates are willing to attack this at their next debate...