Michelle Malkin » The politics of foreclosure
Michelle Malkin » Meanwhile, back in Washington: The politics of foreclosure
From Michelle’s excellent article…
I certainly have sympathy for borrowers who may have been misled. But for every “predatory lender” out there, you can find a predatory borrower. For every fraud-minded loan officer or mortgage broker, you can find a homeowner who secured financing and bought a home he knew he couldn’t afford with little money down and bogus or no income verification. Washington is silent about this reckless behavior, which it is encouraging both tacitly and explicitly.
Now comes word from California that some of these homeowners Washington is rushing to rescue are simply walking away — abandoning their mortgage commitments and contractual obligations. Poof: “Foreclose me. … I’ll live in the house for free for 12 months, and I’ll save my money and I’ll move on,” one homeowner blithely told the Los Angeles Times this week.
The stigma of default is gone. Political rhetoric absolving borrowers of their responsibilities — and encouraging them to spend, spend, spend even more — has made it possible. And so has federal legislation intended to “help.” The omnibus spending bill passed last year prevents the IRS from taxing mortgage forgiveness as income up to $1 million for a two-year period.
Read it all HERE >>>>
Michelle Malkin » Meanwhile, back in Washington: The politics of foreclosure
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