[RANT] [Politics/Religion] Serious Joe Biden WTF?

From tonights debate:


What? Seriously. What The *fudge*?

Hypothetical: My neighbor and I buy houses across the street from each other. I put 30% down and get a nice fixed mortgage and happily pay every month. He puts nothing down and gets a bull*feces* ARM, blah, blah and three years later is upside down *fudge*ed.

Now he gets to adjust his principal? Really? And *fudge* over everyone in the neighborhood who played by the rules.

No....no. I don't care if you work it out to pay $10 or $10,000 per month but pay the principal you signed up for boys. All of a sudden you are able to make a (hypothetical numbers) $500,000 loan a $300,000 loan?

Bull*feces*. Bull*feces*. Bull*feces*. Do I get to adjust my principal for actually knowing what I was doing and living within my means?

And I'm sure X years down the road when he sells his house they'll make them share the capital gains on the reset principle. 

I really hope I'm missing something with Biden's comment. Off to the Google.

Put it this way:

I'll have to do the math but quick thinking in my head it seems I'd be better off 15 years down the road if I "can't" make my payments today and reset my principal. The ROI on the future sale might be worth the ding.

Sorry. This is complete bull*feces* from where I sit. I have no problem working out something that helps homeowners. But don't *goshdarn* reward them and screw people like me who did everything right.

This is the one issue that pisses me off. Banks make bad loans to people who can't understand why they shouldn't own homes 3x what they can afford.

Bear in mind that this great little scheme to wipe off some of the mortgage principal is being extended to people in bankruptcy court.  Saying it's a big win for them is like saying Stroh is a big fan of Carrie Nation, Aske has warm feelings for GW Bush, or Hobbit is straight.

That is probably the root of my problem. I really don't want to bail out anybody - banks/credit industry/people.......The homes were UNAFFORDABLE to begin with and and the blame game can be played in multiple directions. I know we have to stabilize the credit market and a "bailout" will almost certainly have to occur but that doesn't mean I have to like it.

And I get the impact of mass foreclosures. It just pisses me off to no end that I have to end up paying for them.

But tomorrow I'm still going to do the math on whether or not it would be better to adjust the principal or the interest rate from the individual homeowners point of view.

My comments would be fueled by Boulevard Unfiltered Wheat - so I'll just return to my political, and somewhat complete, hiatus on this site.

LOL


Clarence.

It depends on the terms. Unless the terms are extremely restrictive then it would be better (for the borrower) to adjust the principle. But I have no idea if the bailout will restrict one's ability to write off interest or not. The big upside to a principle adjustment is, of course, the ability to eventually sell and pocket free money; but again, that may be restricted or accounted for in the language of the law as well.

My only point was that X amount per month is X amount per month, regardless of how much is P or I.

This just isn't a good time to do rendition and torture on our neighbors...that would be more reckless than what they've done.