Great article from CNN this morning:
Commentary: Bankruptcy, not bailout, is the right answer
The fact that government bears such a huge responsibility for the current mess means any response should eliminate the conditions that created this situation in the first place, not attempt to fix bad government with more government.
The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.
Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.
Normal people, like my family, have conventional mortgages on our homes and 401Ks for our retirement. We are not in the housing market or stock market for short-term gain.
Normal people, or what the media is calling “Main Street”, don’t like it when irresponsible people who cannot pay their mortgages receive a BETTER loan than responsible homeowners. It appears we are turning home ownership and its financing into the student loan program- just pay as much as you can.
Today I visited CitiMortage.com – that’s our mortgage holder. On the homepage there’s a link called “Help with Financial Difficulties” which takes you to this page.
Check this out:
To determine the need for hardship assistance, start with the following questions:
- Are you unemployed?
- Have you had a change in jobs that has caused a decrease in your income?
- Have you had to relocate due to loss of employment or a job transfer?
- Is illness affecting your ability to make your current mortgage payments?
- Has divorce affected your ability to make mortgage payments?
- Has there been a recent death in the family?
- Have you been impacted by a natural disaster?
If you answered “Yes” to any of the above questions, we may be able to assist you (based on investor or insurer guidelines on your loan). Please review the available options and complete the Workable Solutions Application to request assistance from our Workable Solutions team.
So, if you are irresponsible, you may be eligible for a better mortgage!
Wonderful!
It’s the student loan program for irresponsible homeowners.
