I agree with Gimleteye. Click on the EYE ON MIAMI link above to read his entire article:
There are not enough four-letter words in the English language to express how I feel about "mortgage reduction".
Why should I bear the cost of others' mistakes? To keep the economy from sinking into a depression. Then why shouldn't renters, college students living at home who are old enough to vote or serve in the military, why shouldn't Americans who scrimped, saved and sacrificed to make their monthly mortgage payments be given the same deal as someone who would benefit from a reduced mortgage? Free money for a free market.
Gimleteye's comments should be viewed as a call to arms in a brewing storm in regards to where can the credit/housing industry and their unwitting accomplices, both the credit frenzied and the outright mortgage frauds, pin this financial mess.
My family has always lived very conservatively in regards to credit, possibly too conservatively. We never enjoyed the (for the time being) many perks and toys that the no verification loans provided. Of course, we are presently rewarded by being relatively well positioned in this present economy. Unless, of course, we suddenly have to tread water while having "mortgage reduction" for others firmly placed about our ankles.
I recognize that there are those who did not create the downturn they they find themselves in, but everyone has always known about the risks. Those who acted in a fiscally conservative manner have better weathered the storm. We all make our own decisions and it should remain that way in a free market economy, We should not be punished by having other make us the guarantors on bad loans. That would be rewarding fiscally risky behavior.
In other words, can I now go out and overbuy, go up side down and now be subsidized by those who did not? Why I should I not also be considered for a "mortgage reduction"?