The White House is seeking to contrast Obama’s stance with that of Republican presidential front-runner Mitt Romney, who has said foreclosures should be allowed to run their course.
“The truth is, it will take more time than any of us would like for the housing market to recover from this crisis,” Obama said at a community center in Falls Church, Virginia. “But there are actions we can take, right now, to provide some relief to folks who’ve been making their payments on time.”
The $5 billion to $10 billion program, that would be funded by a tax on the nation’s largest banks, would allow homeowners to refinance at record low borrowing costs through government-backed loans. A senior administration official said it could reach 3.5 million Americans whose loans are not government-guaranteed. An additional 11 million homeowners whose loans are backed by Fannie Mae and Freddie Mac could also be eligible, the official said.
How much more are we going to prop up people who made bad decisions and got in over their heads?
As much as he’s painted as a bastard for saying so, Romney is 100% right. Foreclosures have to happen. People who screwed up have to be made to pay for it and if that means losing their homes, they should lose their homes. If you make $40,000 a year, you know you can’t afford a $300,000 house and if you make that move, you deserve to pay for it.
And don’t hand me that shit about having no place to live. There are cities with rental properties and apartments. Move. Yes, that’s right, the same way you moved to your house, you can move to an apartment.
And no, I don’t feel bad in saying so.
At some point the risk in buying a house has to fall on the person who voluntarily sought to purchase one, not everyone else around them. If you can’t make it work, that’s fine. Just don’t expect me to catch you every time you make a mistake.
If you want to save the housing market, you need to stop encouraging bad loans by backing them with federal dollars, stop suing banks for not making loans for reasons you perceive as redlining, and stop bailing out people who get in over their heads.
Those three things need to happen, and if they don’t, then the housing market will never recover.