I am so angry that there is even talk about bailing out people who have subprime mortgages, and in Massachusetts putting a 90 day moratorium on mortgage foreclosure proceedings.
The link below from today's Boston Globe reports that in Massachusetts everyone who has a subprime mortgage from Fremont Investment & Loan now has 90 days before forecloseure filings begin.
2,200 to get reprieves on foreclosures
The only saving grace about this specific situation is that they aren't using Massachusetts tax dollars. It's bad for the home owner, they probably won't be able to afford a fixed mortgage anyway with interest rates rising. I personally think this entire mortgage bailout was partially concocted by the real estate industry to keep prices artificially high.
Unfortunately, there is a new Massachusetts fund to help bailout people. More below the fold.
On July 11, 2007, Massachusetts announced that it will create a $250 million fund to bailout people who cannot pay their mortgages.
Mass. starts bailout fund to aid in subprime crisis
In the article, it does state that :
"Massachusetts taxpayers will not be asked to bail out borrowers, often with poor credit histories, who were wooed by subprime lenders' offers of attractive initial rates that often skyrocketed later.
Rather, the money for the fund will be raised when MassHousing sells taxable bonds with variable and fixed rates to private investors in the coming weeks, an agency spokesman said."
I don't believe for a second that this won't eventually be put onto tax payers. Once the fund is created, and then the fund fails, it will be the government that will have to bail it out, and then taxpayers are stuck with the bill.
I can't explain how truly angry I am about the entire bailout situation. If you can't afford a home, don't buy one. If you can't afford the mortgage you have, sell your house.