The papers have been full of stories discussing Representative Barney Frank's proposal to give loans to unemployed homeowners struggling to stay in their homes. The money for this proposal would come from the interest the Fed collects from the financial industry bailout.
I can't really argue against this. In theory we're not talking about a handout, but really a hand up. One of the things we need to do to stabilize our economy is to stabilize our housing market and that's a tough goal with foreclosures ticking upwards.
The problem I do have is that all these government plans seem designed to help people who are already in trouble. Having trouble paying your mortgage and you're out of work? The GOVERNMENT will step right in to assist you. Having trouble paying your mortgage and you've fallen several payments behind? The GOVERNMENT will step right in to help you refinance at rates you can afford. Having trouble keeping your head above water, but your working and your paying your mortgage on time? The GOV-E-RN.., .... um... I don't think there's a plan for that.
There are thousands of Americans, hell there are probably MILLIONS of Americans who are facing tough times and struggling to get by paycheck to paycheck. Where's the help for us?
Gee, I wouldn't mind refinancing at a more affordable rate so I had some extra cash to pay down my bills, invest in home improvements, maybe buy some essentials. I'm not talking about the Government throwing me some cash so I can get a new Lincoln or something. I'm saying that there are a lot of people who haven't sunk but they're taking on water and wouldn't it make sense to help them out BEFORE they go under?