It’s not that I don’t get the reasoning. Sure, do all you can to help people pay their mortgage, like get rid of other debt. By why stop there? What about car loans? Student loans?? The second liens, in general, were used by borrowers to either buy more home than they could really afford or to use their homes as ATM machines. Yes, some people use home equity lines of credit to pay college tuition.
But I can’t tell you how many homeowners I’ve interviewed (and just take a look at David Faber’s documentary House of Cards to see more) who took out home equity lines to put in a pool or buy a fancy car or put an addition on the house that includes a fancy new kitchen with a Viking six-burner. And I’m supposed to pay for all that?
In fact, if Americans hadn’t taken quite so much money out of their homes during the housing boom, we wouldn’t be in quite the underwater mess we’re in right now.
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So in case you guys aren't clean on this... When some retard took out a home equity loan to remodel is game room or install new stainless steal appliances or redo his landscaping and then finds himself unable to pay his mortgage the Obama plan will not only help him pay his mortgage BUT ALSO HIS HOME EQUITY LINE OF CREDIT!
BTW, I remodeled my condo, bought stainless steal appliances and redid the floors and used a credit card which I paid off!! I supposed a home equity loan and defaulting on my mortgage would have made more sense.
So many people in Vegas lived off of their home equity lines of credit. They bought Bimmers and all kinds of shit. For many people, their houses tripled in value in the last 10 years.
ReplyDeleteApparently it was a smart move because they get to keep those things that they couldn't afford thanks to "free money" from Washington.
I believe "hood rich" is the term.
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