Dear Mortgage Holder,
Obama’s latest plan must sound pretty sweet to you. You bought a house and paid too much for it.
It didn’t look that way at first because after you bought the house, it went up in value. Prices were rising everywhere fast. Reasoning that nothing could go wrong, you took out a home equity loan on the increased value so you could get that flat screen TV and some other things you “needed.” You really ran up those credit cards.
But then the housing prices started falling to more realistic levels. Sure, they fell fast and some of that decline was caused by idiot bankers making risky loans to people…like you, maybe?
Now your mortgage payments are killing you and you’re complaining about it.
Obama has heard your cries. He has decided to dig into the treasury and give money to lenders so that you can refinance your house and lower your payment.
You remember that I have been renting. I’ve been saving my money, keeping my bills low, scrimping and acting responsibly. When you made your loan, remember how I laughed at you and said you were being foolish? “How can you expect to pay for all that extravagance?” I asked. Boy, was I smug and morally superior.
But you got the last laugh. Because I saved and did well, my taxes are going to go up, so that Obama can pay the bill for all this refinancing.
In effect, the money that I have been saving to buy my own house will be going to pay for yours.
I read in the papers that a lot of “journalists” and politicians think this is “fair.” They want to move quickly, too, because they think if we don’t then the economy will get worse. How do they know? They don’t. It’s just a guess. But everybody will be happy because the government is giving away money. They never stop to ask where the money comes from.
You’re probably so happy that you hadn’t even thought of the best part. See, your payments will go down and you get to keep your house. That part you knew. But your house will also increase in value in a couple of years. That means you’ll be able to sell it at a profit. So you’re getting a kind of double gift; you’re going to be doing pretty well after all.
All thanks to me and my money.
Just wanted to say you’re welcome.