Attention Homeowners: You got in, you get out

Surprise! Homeowners who got in over their heads will have to get out on their own, no help from Uncle Sam this year.

No major mortgage reform coming this year --
Lawmakers, regulators take wait-and-see approach to subprime fallout
http://www.msnbc.msn.com/id/19099192/

A little common sense goes a long way. With the exception of those who involuntarily lost jobs or became medically ill to the point where it skewed their finances, those who just overspend are stuck in the canoe they built, no paddle.

People, if it sounds too good to be true, it is. No matter what the stranger at the other end of the phone tells you. Do your homework, educate yourselves.

If you can't afford it (whatever it is), don't buy it. Not on credit...that just postpones the expense. Save for what you want and purchase with cash. If you must use credit, do so like a debit card. Every charge should result in an equal amount of earnings being put aside to fund the purchase.

I think the regulators are making the right choice. The best rates are reserved for those with good credit scores & histories. They have a proven track record of timely payments. Those with payment problems or limited credit history will pay more to balance the added risk they bring to a transaction. No one forced "sub-prime" borrowers to take a loan for anything they can't afford.

Adjustable-rate mortgages have oodles of disclosures attached which state that the loan is subject to adjust in x period of time. Common sense tells you that rates go up, very rarely do they go down. When entering into this type of loan, you have to figure that the rate will go up...and should always look at the worst case scenario.

Although this is another very complex issue, I don't feel government intervention is the answer here. Perhaps lenders should just say "no".

Melissa S Haley A Connecticut Mobile Notary Public