I read an article in the LA Times today on CA political morons calling for legislation to prevent sub-prime borrowers from facing foreclosure.
I love it – these people shouldn’t be in homes they can’t afford, lied about the money they make, didn’t read loan docs, or refied and lived lavishly and we want to make sure they stay in their homes thereby artificially propping up inflated values, with no regard to future generations who will want to someday buy.
One suggestion was to give 120 days notice on interest rate and payments there were to reset.
Hmmmm…you bought a house with a 3 Year Fixed ADJUSTABLE RATE MORTGAGE. Isn’t 13,140 days enough notice?
These people never cease to amaze me.
For those who wonder when the bottom will come, it will be when idiots like these realize that prices are inflated way too high, that THAT is the problem with our economy, that access to more debt is not a solution, and that a 50% price drop is a return to NORMAL levels.
Until then they will exascerbate the problem with “solutions” like these.