Clipmarks - cmstratton's clipmarks from July 17, 2008

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POPS Why Am I Being Punished for Being Responsible

by cmstratton 7-17-2008

I understand there's a crisis in the financial sector, and we can't let financial institutions go under due to poor decisions around mortgages. But when I read about legislation that will put borrowers who took out exotic mortgages on houses they couldn't afford, into more affordable loans with a reduced principle, it makes me mad. I was responsible when I got my mortgage. I did my homework, got into a fixed loan on a house I knew I could afford. Could I have done an ARM and gotten a bigger house - sure, but I was responsible and only got into what I could afford. Now, people who weren't responsible are having their mortgages reduced and their rates permanently lowered. Why isn't this available to me? If this is the plan, I say require people to pay back the reduction in principal and interest from any money they make when they sell their house. Otherwise you're just reinforcing bad behavior knowing the gov will save you if you make a stupid decision.