02-18-2009, 06:02 PM
I can see this actually helping, assuming we can keep too many people from taking advantage of it.
In my situation I own a house where I currently owe more than it is worth. I make the mortgage payments in full every month and I am fortunate enough to still have a job, however my hours have been reduced and I am not able to save as much as I used to. I feel this puts me at risk. I am living within my means now as I was before, but right now I am closer to the edge than I would ever like to be.
If I could renegotiate the terms of my mortgage to something with a slightly lower interest rate (or perhaps one that was not an interest-only loan) I could pay down the loan faster and resume my previous savings agenda, or perhaps put some of that money back into the economy. Do some home improvement projects, or maybe replace my 22-year old car.
I am not looking to be "bailed out", but I think that if we can take a step back and reassess the situation that things can and will turn out for the better. I will still be paying back the loan, the mortgage company will still be making money from me, I will still have a house, and a job, and the extra money can go back into the economy.
I see very few to no reasons why people who made responsible choices about home ownership should continue to bear the burden of over priced loans. It just doesn't make sense to perpetuate that strain.
In my situation I own a house where I currently owe more than it is worth. I make the mortgage payments in full every month and I am fortunate enough to still have a job, however my hours have been reduced and I am not able to save as much as I used to. I feel this puts me at risk. I am living within my means now as I was before, but right now I am closer to the edge than I would ever like to be.
If I could renegotiate the terms of my mortgage to something with a slightly lower interest rate (or perhaps one that was not an interest-only loan) I could pay down the loan faster and resume my previous savings agenda, or perhaps put some of that money back into the economy. Do some home improvement projects, or maybe replace my 22-year old car.
I am not looking to be "bailed out", but I think that if we can take a step back and reassess the situation that things can and will turn out for the better. I will still be paying back the loan, the mortgage company will still be making money from me, I will still have a house, and a job, and the extra money can go back into the economy.
I see very few to no reasons why people who made responsible choices about home ownership should continue to bear the burden of over priced loans. It just doesn't make sense to perpetuate that strain.