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Is the govt plan adding to the delinquencies?

I keep reading of the plans that the government wants to give assistance to those homeowners having trouble with paying their mortgage. Now I read that the guy over at the FHA is trying to propose a plan to give a principal reduction to these Americans in need also. What is the deal? Allow me to rant just a minute. I sell real estate for a living. It hasn't been the best for the past three months, but thank God, I have managed to make my house payment each month. No relief for me UNLESS . . . I quit paying my mortgage! Well, now that's a first. I have to wonder how many more will think this one through and in order to save thousands of dollars off their mortgage . . stop paying their mortgage on time.

And let's take it a bit further. With the current situation, why don't I just take all the equity from my home and build a log cabin in the woods somewhere. No problem, because after I miss a couple of payments, then I'll get an extra month or two of help from the government. Then I will stay in my house until after they foreclose. And as a real estate agent, you know what that means. CASH for KEYS! That should give me enough time and money to move into my new log cabin DEBTFREE!! You see where I am going with this? A "bailout" plan should not encourage that kind of thinking. I am still looking for a better way to resolve this mess. Until then, with God's help, I am paying my mortgage.

Posted by Jimmy Cooper Dyersburg TN Commercial Real Estate on 03/29/2008 01:48 AM

Comments (6)

mortgage mess, bailout

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6 Comments on Is the govt plan adding to the delinquencies?

A lot of people did just that. Purchased properties in 2003, then refinanced heavily in 2005, and now are walking away from the properties.

03/29/2008 01:57 AM

by Jon Zolsky (FunCoast Realty LLC)

Jon

Thanks for your comment. I bought a home after the former owner was foreclosed on. They did exactly what you are talking about. And this was before the government plans to add fuel to the fire!

03/29/2008 02:02 AM

by United Country Cooper Realty

"Government Intelligence" there's an oxymoron for you! Seems to me that it really is time for some REALLY BIG CHANGE. We have the right to expect (and demand) better than we're getting from Washington!

03/29/2008 05:46 AM

by Eric Webster Grand Rapids, MI, Five Star Realty (Five Star Real Estate)

95% of us have to keep paying or the whole thing really will fall apart. It is the 5% that gets the headlines.

03/29/2008 11:26 AM

by Robert Machado, CPM MPM Sacramento Area Property Manager and Property Management (HomePointe Property Management, CRMC)

Jimmy,

Our government has been in the enabling business a long time. Time for people to take personal responsibility for their actions. McCain is against this type of behavior by our government.

03/29/2008 05:23 PM

by Mike Frazier, Dyersburg Tn Real Estate (Carousel Realty of Dyer County)

Jimmy,

It seems that in this day and age, those that aren't paying are being rewarded by the government. The system just always seems backwards!

I hear your frustration!

03/29/2008 07:35 PM

by Sandy Shores Melbourne FL REALTOR Brevard County- Florida Space Coast (M & M Real Estate Inc)