It certainty pisses me off as well that people who didn't bother to educate themselves bit off more house than they could, but it's also the banks fault for even allowing people to take these shit loans. The problem is the more people that keep losing their houses the shittier the economy gets. The housing economy then fucks over the entire credit industry and then everything goes to shit. So as much as it sucks, it's actually better that people pay money on a re assessed and re mortgaged house (even at a lower payment) than re possession.
My worry is the credit card industry is going to be the next to do something stupid to the economy:
"Jack Shitter is $30,000 in CC debt. This was a stupid thing to do on his part but this is beside the point. Jack has made his payments on time without any issue and even pays a little more every month to pay it down. Jack has an okay fico score (lets say 680) at the moment and his credit card company has rewarded this with an okay APR of 12%. Jack also has a 30 year fixed mortgage at 4.8%. Jack then misses a few payments on his house in order to pay his credit card (since there is help in the form of a stimulus package). His fico score goes down to 530. The CC company takes note of this and shuts his CC down and jacks his rate to 33%, Jack has no more credit and can't make his payments on his card anymore. Jack is fucked, goes bankrupt and the CC company loses most of that money in the bankruptcy."
My worry is the credit card industry is going to be the next to do something stupid to the economy:
"Jack Shitter is $30,000 in CC debt. This was a stupid thing to do on his part but this is beside the point. Jack has made his payments on time without any issue and even pays a little more every month to pay it down. Jack has an okay fico score (lets say 680) at the moment and his credit card company has rewarded this with an okay APR of 12%. Jack also has a 30 year fixed mortgage at 4.8%. Jack then misses a few payments on his house in order to pay his credit card (since there is help in the form of a stimulus package). His fico score goes down to 530. The CC company takes note of this and shuts his CC down and jacks his rate to 33%, Jack has no more credit and can't make his payments on his card anymore. Jack is fucked, goes bankrupt and the CC company loses most of that money in the bankruptcy."
