Resentment of foreclosure aid on the rise

Here on WalletPop, our resident accounting expert Tracy Coenen has expressed her disagreement with efforts to bail out troubled homeowners in a number of posts: like this one and this one.

A lot of other people share Tracy's views. With governmental efforts to help out homeowners increasing, the New York Timesreports that "Some of these municipal and state efforts have met resistance from people who consider the assistance undeserved and adamantly oppose anything that resembles a taxpayer bailout."

I'm not necessarily opposed to helping people through tough times. But I have to agree with Tracy and a lot of the other critics. The way a lot of "experts" are advocating helping out home owners is insane: the government-backed rate-freeze for subprime borrowers announced in March only offered assistance to people who have less than 3% equity in their homes.
To me, it should be the opposite: if there is a role for the government to play in helping struggling home owners, it should be helping people who've been diligently paying off their mortgages for years building up equity, and want to avoid a distressed sale in a down market.

But I just don't understand the point of helping people who have limited or no equity keep their homes. What is the point of that? Here's my view on it: if you have less than 3% equity, you aren't really a home owner in any meaningful way, and it's no great tragedy if you have to move out of the home you've been living in.

It's not about being mean-spirited but, with limited government resources available to solve an infinite number of problems, bailing out home non-owners seems like a bad choice.
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