Obama housing plan

[david_mcmanus]

[tomtom]

Ugh.

http://www.financialstability.gov/

One of the provisions is to pay homeowners $1000 per year (reduction of principal) to make their mortgage payments on time.

Personally I believe homeowners under this plan should not be allowed to take the $250,000 exclusion when they sell.

[david_mcmanus]

It just seems like the gov is rewarding the bad behavior that got them in the situation they're in now. The gov. now teaches me that no matter what I do financially, they will be there to bail me out. Maybe I should just get out there and spend away!

I heart moral hazard!

[Lake Hills Renter]

[david_mcmanus]

Does anyone have the link to the application for the 1K per year bonus if I made my payments on time? I mean, I've been paying on time for the past 7 years, so I need to get my 7K.

[EconE]

1k/year bonus?

Yeah, that'll be an incentive for all the people in the million$ homes everywhere on the West Coast.

1k/year bonus just suckers them into staying around to pay 10k annually in property taxes.

Sure...they might modify the mortgage. It doesn't mean the house is worth the "bubble" price...but they'd love to have the homeowner believe that it still is. You can't argue that your home is worth double what you think it is unless you want to pay taxes on it.

Perhaps we should now refer to overinflated property taxed as "ego taxes"?

[rose-colored-coolaid]