Remember the second mortgage that you didn’t get because you were responsible and saved money in order to buy what you wanted? Well, you have a bunch now. It is being reported that Obama’s plan will pay banks to forgive second liens. Yep, our money is going to pay banks for people’s second mortgages.
From Second Liens Forgiven: Are You Kidding Me? on cnbc.com
It’s one thing to suck up the bitter pill in order to save the greater housing market and keep families in their homes, but using taxpayer dollars to give homeowners a free ride on second liens is preposterous. The Obama administration talks a good long line about helping “responsible borrowers.” Second liens can certainly be responsible, but there’s a much much much greyer area in these loans when it comes to actual “need”, and many many people used them irresponsibly.