Readers speak out on Bush mortgage plan

Msnbc.com readers reacted vociferously to a Bush administration plan, announced Thursday, that would freeze interest rates for some mortgage borrowers in an effort to prevent a wave of foreclosures.

Even though few details have been disclosed, most readers said the plan was unfair and rewarded consumers who had made poor financial decisions.

Here are edited excerpts from some of the hundreds of comments submitted to   our message board.

Why should the government jump in when someone makes a bad financial decision? What's next-don't make consumers pay interest on the credit cards they have used to overextend themselves? All Americans should be responsible for their financial mistakes. Stop blaming everyone else! Live within your means!!
—DC real estate

Gosh, we worked and saved for nearly 10 years to have enough money for a down payment on a house WE COULD AFFORD!!!  Maybe we should have just spent the money on stuff we don't need and bought a house twice the size and three times the cost of the one we have.  I guess we ARE better then the losers that are going to take another government handout.
—Justin 1156

Sure, lenders are a weaselly bunch, but the bottom line is nobody forced anybody to sign anything.  I bought a house during the peak of the market when adjustable rates were being given out like candy. I knew darn well I couldn't afford a mortgage payment that might skyrocket, so I wisely took a fixed-rate plan.  Just because a bunch of dullards took on more than they could ever afford doesn't mean the rest of us should bail them out
—HuckP

Since Mr.. Bush is proposing to give a break to the people who can't seem to control their greed, he should also propose giving a break to everyone else to keep it fair.  Are you going to propose reducing the interest rate of my fixed rate mortgage to keep things fair, Mr.. Bush?
—rewardtheidiots

It doesn't matter who you blame, the lenders for pushing these type loans or the idiots that signed up for it, bailing them out will only encourage more of the same. This is definitely NOT something that will encourage fiscally responsible behavior.
—trdhrdr007

As far as plans go, this may be one of (Bush's) better ones.  In terms of minimizing damage to the economy, this is about as good as it can get.  The lenders are going to get most of their money back (granted, at only a little more than the cost of capital) and the lenders get to keep their home.  Predatory lenders are stuck with honoring the loan as long as the homeowner is paying their bills and those that signed the loans are held accountable for the money they borrowed.  If you disagree, come up with a better plan (one that doesn't destroy the economy, ravage the real estate market, or fully reward the bad behavior of not paying back your loan obligations).
—Jay Keggerlord

This is a great idea.  The government should bail out everyone who has ever entered into a bad contract.  Every loser should be made a winner at the tax payer's expense.  How about reimbursing everyone for every losing stock they ever had, also?  I'm holding a few losers now.  I want the government to give back my money.  Where does the line start for my government handout?  Oh, I want the government to pay my credit cards off each month too.
—Richard, Fort Lauderdale

As a mortgage broker, I continue to see both sides of this issue. Ultimately, my feelings are that those who knowingly got in to an ARM should either refinance their home to a fixed rate or sell their home and buy one they can afford.
—Annoyed Broker

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