Are You a Victim of Mortgage Idiocracy?
- Nov 28, 2007
- admin
- Investing
I MUST ADMIT I’VE BEEN FEELING QUITE CONFLICTED ABOUT THIS FOR SOME TIME.
No, I’m not talking about whether or not I should vote for Rudy Guiliani or Fred Thompson in the Republican Primary.
(I like Fred but he does look like a confused bear walking around Iowa. And though I saw Rudy clean up NYC first-hand I am a bit Rudy-weary)
Nor am I talking about whether I think it’ll be better for us Republicans to face Obama or Billary in the general election.
Today I happen to be talking about the mortgage mess and how it affects ordinary Americans.
Let me explain.
America was founded on the principle of eliminating aristocracy. The Founding Fathers, in their infinite wisdom, wanted to do away with the concept of being born into greatness. If you study hard, work hard and get a little bit lucky you should be rewarded accordingly.
The Founding Fathers had no patience for the European system of aristocracy that allowed people born into the “lucky sperm club” to rise at the expense of hard-working folks who had no such luck.
Their goal, so eloquently put forward by Thomas Jefferson, was to create a “natural meritocracy”; a system where people could rise or fall based on individual performance.
And that’s what makes this country so darn great.
Yes, some people are born into rich families that give them a competitive edge. But if rich spoiled X-Generation losers like Paris Hilton have proven anything it’s that money passed on through generations can have devastating effects on the long-term development of any families gene pool.
What does this have to do with the mortgage mess? Plenty.
You see, I used to think that anyone claiming that they were a victim of unsavory mortgage brokers was either ignorant when they secured the mortgage or is lying today.
You know the type I’m talking about: the sorry couple that the “liberal media” always seems to trot out on seemingly every televised news magazine these days.
First we hear about how they thought they were getting their “dream house” for only $1,200 per month. Yes, it didn’t occur to them that anything was fishy when they were able to buy their 3-bedroom dream house that was listed for $500,000 for only $1,200/month. To top it off, their always “shocked” when their mortgage re-adjusts and their payments “soar” to $1,800/month.
Give me a break. That just pisses me the heck off. What ever happened to personal responsibility in this country?
The second type of person who seems to have been caught in the mortgage mess is the Class-A liar.
Although the news magazines like 20/20 aren’t so quick to trot these bulls—ers out you know the type I’m talking about. The fast-money genius in the real-estate business (real estate broker, mortgage broker, mortgage underwriter, or other would-be entrepenuer) who went from zero to hero as soon as he/she saw how easy it was to flip houses for profits.
I have NO sympathy for any of these people who tried to make a buck after watching a couple episodes of “Flip That House.” If this describes you, and you suddenly find yourself in waaaay over your head – TOUGH LUCK!
Don’t try to cry ignorance right now. You played “musical chairs” and thought you were clever enough to make sure you had a chair when the music stopped.
Now, before you begin hurling e-stones at me on the comment section of the website let me explain what I mean when I say I’m “conflicted” about this mess.
People who were ignorant (read: stupid) about their purchase should have to suffer the consequences of their stupidity.
People who thought they could make a fast buck and are suddenly crying uncle (read: liars) should also have to suffer the consequences of their hustle.
(We, as American taxpayers should NOT help bail these people out. I know, I know – there are some good people who got caught up in this mess. But that’s the price you pay in a capitalist society for being (a) ignorant or (b) too clever. Why on earth should the rest of us – who were more cautious, more studied, more patient, more skeptical, etc pay the price for people who just didn’t take the time to do the due diligence we did???)
But it’s not those people causing the bulk of my conflict. It’s another group of people that I haven’t addressed as of yet…
I’m talking about home owners who were out-right lied to. People who were told they were getting one type of mortgage but in reality were getting something totally different.
Now here’s where my conflict really heats up: these people should have known better as well.
I mean, come on America! What ever happened to reading the contract before you sign it?
So, if it isn’t clear enough for you, I’m firmly against any sort of bailout to help these people out.
The only “bailout” I would even consider is one where it can be proven that the mortgage broker who sold the mortgage lied about the terms of the mortgage.
But even then it would only be a partial bail-out. And there would be one condition attached…
You’d have to check the “YES, I WAS STUPID FOR NOT READING THE CONTRACT AND I HAVE LEARNED MY LESSON” box.
Dylan Jovine