Government mortgage bailout?

Question

Will this set a precident for anyone who feels they are paying too much in interest or fees to renege on any installment or revolving credit debt?

Answer 1

The gov't should be careful about providing too much of a cushion or way out for people that got in over the head on their mortgages, buying more house than they could afford.

On the other hand, people that were victims of unscrupulous builders who encouraged them to lie on their applications or predatory lenders; I believe those people should have some means of recourse and assistance from the government.

In most cases, though, I think people just bought more house than they could afford and chose to assume interest rates would not go up and also chose to assume that real estate always appreciates in value.

People who use their homes as piggy banks, via home equity loans, to live lifestyles they could not afford with their income, they don't deserve assistance either.