McCain Housing Plan a Game Changer?

McCain plan rewards banks, fails taxpayers

The fine print of the McCain plan is that he is going to buy those subprime mortgages for face value. So a home purchased for $300k and is now worth only $250 will have its mortgage bought out for $300k. If the governmant has to foreclose and sell the house it will cost taxpayers $50k and the bank walks away with no loss for taking a gamble. Great Plan.

Andy of OH @ Oct 10, 2008 09:31:04 AM

You too can buy my vote . . .

When will the gullible people realize that they are using OUR money to buy our vote...

Stunned @ Oct 09, 2008 16:35:03 PM

This is not only about responsibility or buying homes within your means

People are talking trash about being responsible and buying a home within their means, that the people who lost their homes lost them due to pure irresponsibility. Wake Up!!! Responsible people have lost their jobs and couldn't pay their mortgage, responsible people had a spouse who become ill that took care of half the mortgage. I am referring to everyday working people where sometimes an unexpected bill or expense could make things difficult. Most of the people talking this mess are probably from a household where only one person has to work. . So stop thinking that people that lost their homes only did because they purchased a home they couldn't afford, I know that's probably what McCain thinks. He does not even know what struggle means!!

Hardworker of PA @ Oct 09, 2008 16:16:24 PM

This will work if this plan also "rescue" those who did the right thing and bought a house within their means, paid 20% down payment, but are now upside down! We are upside down by 30% because of declining values, resulting from area foreclosures and surplus of houses on market. If the loans are re-written to reflect the current value, it would reduce the blow and reality that I am paying 40-50% more than my NEW neighbor. To keep responsible people in their homes, and allow them to make decisions that make financial sense, this principal write-down, to current market values....makes good sense.

troubled by the economy of CA @ Oct 09, 2008 14:55:27 PM

Even worse

Reward the people who were greedy. And punish the people who live within the means or who understood that "variable rate" mortgage would have a higher interest rate in the future. This is a windfall to stupid people. A desperate plan from a tired and desperate candidate.

Jeff of NY @ Oct 09, 2008 12:49:16 PM

Fast Forward Several Years

Imagine several years dwon the line, when house prices have increased from the new reset baseline. When the homeowner sells his re-baselined mortgage, does he give any profit back to the Federal Government ? If not, why? Why should irresponsible homeowners get a gift of hundreds of thousands of dollars ?

Just asking...

Anonymous of NY @ Oct 09, 2008 12:16:15 PM

Moral Hazard Either Way

These mortgages would be bought and paid under either the $700+ plan or a $300 billion plan. Perhaps the best solution would be to let the loans default and let everyone suffer consequences for making bad decisions, but there are two things wrong with this.

First, doing nothing isn’t politically viable. With an election coming up, politicians will be scrambling to at least look like they are doing something to “solve” the problem.

Second, allowing bad loans to default doesn’t take into account that the taxpayer is partially responsible for this mess. The taxpayers, as an aggregate, voted for the leadership (congress, the president, and HUD), which required Fanny Mae and Freddy Mack to make sub-prime mortgage loans that would not have been made in a free market. Without government intervention, the key ingredient in this crisis would never have been present. So, I think there may be a case for making taxpayers bare the costs associated with electing poor leadership.

Paul R. Dorasil of TX @ Oct 09, 2008 11:14:38 AM

Lost my vote

Reward idiots who overspent on their homes at the expense of those of us who live within our means?!?!? If thats the case I should be bailed out of the equity losses I've suffered in the stock market.

PO'd of NY @ Oct 09, 2008 09:01:43 AM