When all this started happening and the crap started hitting the fan, I told my wife "You watch, the government is going to bail these idiots out, and we are gonna get screwed"! We just sold our house that was on a 30 year fixed at 6.2% four months ago, just before this started happening. We were lucky in that it was a cash sale. We moved to just north of Austin, and while we wanted to buy another house, we decided to rent for a year and see what was going to happen. Man, the # of forclosures in our neighborhood is incredible.
I agree this is complete BS for our GOVT to come in and bail these irresponsible buyers and lenders out. What happened to personal responsibility on BOTH sides? The person who knows they can't afford a $300k house while making $10.00 an hour?? The lenders are just as, if not more irresponsible, writing a loan for such a thing. While I agree it may keep the economy from tipping into full recession, prevent the dollar from slipping more against the euro, keep some people "temporarily" in their homes, and keep foreign billionaires from owning us, it isn't what should happen.
When a correction comes, as it usually does, things will eventually right themselves, even if it gets ugly in the short term. It would have taught these idiots on both sides that you cant make or take a mortgage for a mansion if your income cant support it. Finance 101. Bad investment. Think about it like your own money. Are YOU going to give a person a $300k loan at a balloon of $2500 a month when they only make $2000 a month, and have other monthly expenses that equal $800?? NO WAY!!
As a potential buyer who did the right thing, we will get the short end of this. If we buy in the next 6 months, we may get a good interest rate, but due to the "bailout", the price correction will not have gone as far as it probably would have without it.
Dont buy what you cant afford, and if you do, take your lumps. Lenders - the same for you. You deserve to lose your scratch if you do something stupid.
Morons.
Oh, and Darth Vader is Lukes Father!! AAAAAARRRRRRGGGGGGGHHHHHH!!!!!