Dylan.Blog Writing and musings by Dylan Reed

Maybe I Just Don't Understand

I have been doing some reading recently about the economic stimulus plan and how it is affecting mortgages. What I have read has actually made me a little mad. It seems that in order to qualify for the monthly payment reduction you have to be behind on your payments. WHAT!?! This makes no sense to me. If they are going to reduce your payments you still have to make those payments. If someone can’t make a $1600 to $2000 payment what is to say that they are going to be able to make a $800 or $1000 payment. Not only that but the people that qualify for this plan get a $5000 reduction to their principle if they make there payments on time.

I do think that we need to help people, but helping people who made poor financial decisions and not helping those that made good financial decisions is wrong. Why should people who bought a house within their means, read the loans fine print and make their payments be punished by having to continue to pay the full amount of their loan. I would love it if out mortgage payment was reduced from its current amount to three quarters of that amount. I would also love to have the principle on our loan reduced by $5000. $5000 is equal to more then 6 months of not having to make payments. In fact that would almost make our rate 0% instead of the reasonable rate we currently have.

Sure it sucks that people are losing their homes but all of those people are adults who are responsible for contracts that they sign. I find it hard to believe that people where surprised by their mortgage payment doubled. If people did not read the contracts they where signing, that isn’t the person who wrote the contracts fault. If in fact the contract contained illegal parts, then sure, they people should get help. But if everything in the contract is legal why should they get help and people who aren’t in a bind get no help?

I just think that the USA is setting a dangerous attitude of taking responsibility for people making poor decisions. What about people who lose their jobs due to negligence on their part and can’t pay their mortgage. Should the government fix that problem too? Foreclosure sucks but is it really the government’s job to fix peoples poor decisions?

I will admit that I have a selfish reason for feeling this way. I want my mortgage payment to go down. Not because I can’t afford it. not because my rate has sky-rocketed, but because everyone was created equal so we should all be treated the same. If my neighbor is going to get his mortgage reduced by $5000 and be able to make reduced payments, I want to get all of that too.