Learn About the Making Home Affordable Refinance and Modification OptionsTo quote The Outlaw Josey Wales, "Don't piss down my back and tell me it's raining." This is a classic example of how interventionist government picks winners and losers, singling out some people for favoritism, while screwing over the rest of us.
The President's plan was created to help millions of homeowners refinance or modify their mortgages.
Refinancing: Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home. A Home Affordable Refinance will help borrowers whose loans are held by Fannie Mae or Freddie Mac refinance into a more affordable mortgage.
Modification: Many homeowners are struggling to make their monthly mortgage payments either because their interest rate has increased or they have less income. A Home Affordable Modification will provide them with mortgage payments they can afford.
When I left Georgia in 1997, we left behind a cute little bungalow on a full acre of wooded land that we bought cheap in 1992. It took us two years to sell the thing, which meant that I spent my first two years in Washington paying that mortgage while also paying $900 a month for an apartment. We tried to rent out our Georgia house, then tried to do a rent-to-own, until finally we sold it at a very modest increase over what we'd paid for it. The damage to my family's financial situation in the meantime was enormous.
You do what it takes. And since what it took was for us to suck it up, essentially forfeiting our equity and become tenants, that's what we did. Well, welcome to 2009, and suddenly it's unpatriotic to expect people to make the mortgage payments or else lose their equity. People have a right to a home, no matter if they're 120 days past due. Pay close attention to the next sentence:
FUCK YOU, SCUMBAGS
Excuse my temporary departure from the appropriate decorum of family-friendly blogging, but expecting me to conceive of worthless deadbeats as victims is a bit much to ask. I'm hustling as hard as I can -- please hit the tip jar, people -- to avert complete financial disaster myself. I've got six kids to support, and I ain't got time for pity, as if pity had any economic value to begin with. Imagine me calling up the finance company and pleading pity to prevent the repossession of my car. (I'm still waiting for those ACORN protesters to show up.)
Now, you can go to Michelle Malkin and read about people whining about the Obama plan. Or you can go to Naked Capitalism and read a detailed analysis of this "mortgage modification" nonsense cooked up by the Treasury Department. But, in general, as an economic proposition, the plan can be summarized in two words: It sucks.
That's why I've announced my own plan, "Foreclose and Evict the Deadbeat Scum" (FEDS). It's very simple:
- The banks take back the houses currently occupied by deadbeat scum.
- The deadbeat scum either find a place to rent, or move in with relatives, or go straight to hell. It doesn't really matter. We're talking economics.
- This creates a housing occupancy in the homes formerly occupied by deadbeat scum.
- The banks must either (a) sell the homes for whatever the market will pay, or (b) rent the homes to people who weren't foolish enough to take on balloon-payment mortgages.
- Whatever the ultimate result -- and rents for homes made vacant by the FEDS program may need to be reduced in order to attract tenants -- the point is that the excess-valuation problem in the housing market will be resolved, so that prices once again reflect actual supply and demand.
- Homeowners who don't wish to participate in the FEDS program can opt out by making their fucking loan payments, like they fucking agreed to when they fucking signed their fucking contracts.