Government to citizens: Ef you

Foreclosure prevention plan under attack - Feb. 21, 2008: "Both the Emergency Home Ownership and Mortgage Equity Protection Act of 2007 and the Foreclosure Prevention Act of 2008 aim to provide relief for some home owners in bankruptcy. Only borrowers who live in their homes and hold subprime or non-traditional mortgages, like interest-only loans, would be eligible."

The proposal is to allow Bankruptcy judges to "cram-down" the balance on a mortgage, reducing the amount the borrower has to pay. It only applies to risky loans.

The moral of the story, kiddies, is don't bother doing the responsible thing. Responsible folk don't get any help, government only helps people who intentionally accepted a greater degree of risk than was prudent. Put 20% down, take out a loan you can afford, take good care of the house, lose your job when the housing market tanks - too bad, so sad. Put nothing down, take out a loan you can only have afforded if the stars aligned perfectly in your favor - house appreciates, you get 5 promotions in 2 years, you manage not to have another kid you can't afford, you manage to refi to a lower rate than the already ridiculously low teaser rate - the government will pull out all the stops to make your house magically affordable.

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