"Why the Foreclosure Settlement Could Mean More Pain for Homeowners"By Meg Handley | U.S.News & World Report LP – Fri, Feb 10, 2012
Why even bother to pay your mortgage anymore?
My husband and I have always tried to do "the right thing" and with the grace of God we were able to maintain our house and pay our mortgage faithfully every month.
It seems that in this "new era" the "new normal" is to expect Uncle Sam to pay for someone else's mistakes using your money!
I'm not saying that the majority of those who bought into the "everybody should own a home" lie and fell pray of the banksters (with DC_land blessings) has done it on purpose or maliciously ...
These are very hard times, and Lord knows, my heart goes out to those that are having to endure this recession and lose everything they worked hard for. But, I can't get past that this is another bailout disguised as a "rescue from the heavens" to those who were fooled into buying "the american dream". Wake up people! Follow the money trail, DC-land will give your money to the banksters, so they can graciously forgive part of somebody else's principal!
What about your principal? Since you are not under water, that 50% loss in home value just doesn't count? Sorry, your house is worth 50% less, but since it was your loss and not the bank's you get stuck with it. Is it fair that you are helping your neighbor pay for his house, with your taxpayer money, when you just lost 50% of your hard earned equity?
Here's the kicker:
We all know that if we all lose our homes to foreclosures, the market will be saturated with homes and the value of these homes will be next to zero. Well, banksters would be stuck with a bunch of homes that they can't sell and they wouldn't be able to profit from either new loans or from the sale of the homes. But our government is willing to save the day and basically buy the debt from the banks in exchange for lowering the principal and getting homeowners to stay in their homes. With new lower home values, the banks get to keep the difference of the old higher principal amount and the new lower adjusted principal amount. In reality banks have not lost one penny
But remember, all homes will now be worth significantly less, forever, and if you are not in the red, and the value of your home is not less than what you owe, too bad! You're are stuck with the loss.