The latest insight into the housing Obamanation was reported today at CNBC but isn’t getting a whole lot of real press. It’s rather like bankruptcy but with only half the stigma.
One of the ways in which those Democratic knights in shining armor intend to help all those “overextended” homeowners, hidden in the depths of President Obama’s mortgage modification plan, is to pay mortgage servicers to write off second liens. You know, those home equity loans or home equity lines of credit that so many people have used for instant gratification, to “fluff up” their lifestyle with things like new cars, big screen televisions, a trip to Europe, a swimming pool, or a fancy addition on their house.
All those things some of us pay for through more traditional means of financing, including cash.
Sure, some people have used the equity in their home for truly responsible things, like college tuition, but the truth is that enough of it went for non-necessities that this is far too grey area at which to toss even more of the responsible American taxpayer’s money.