""Although the sponsors of this bill have expressed the intent to rescue homeowners who are currently in foreclosure or risk thereof, it is clearly unconstitutional to interfere with existing mortgage agreements in Ohio," Thompson said. "Any provision authorizing Common Pleas judges or the Ohio Department of Commerce to modify existing mortgage contracts will be stricken from HB 3 upon legal challenge. This will not only negate assistance for current homeowners, but it will leave the statute applying only to prospective mortgage contracts."
"As applied to these prospective mortgages, HB 3 would clearly raise interest rates for prospective homeowners, thus harming more Ohioans than it would help, and enhancing the likelihood of increased delinquencies," Thompson added.
Specifically, HB 3 empowers Common Pleas judges to reduce the principal amount and/or interest rate of the loan. In addition, the measure empowers the Ohio Department of Commerce to"
- Reduce the interest rate on a home loan;
- Extend the period over which a homeowner may repay a home loan;
- Defer the amount of principal due on a home loan;
- Reduce the principal due on a home loan; and
- Utilize "other factors that the director determines are appropriate."
If this isn't a lesson on intentions vs consequences I don't know what is. Marxists are known for having perceived good intentions (I don't think they do, but they, at least try to sell the good intentions) but the results are catastrophic.
Letting people renegotiate the principal on their mortgages? Apparently, all of us that pay our bills on time and have either paid down our mortgages or paid them off, have been doing it the wrong way.
So, we should have gotten behind in our payments, by getting ourselves into debt that we never could afford to repay....hoping the housing market would continue to go up and we could sell our house if we ever needed to for a higher price than what we paid for it.
It is fundamentally bad for a civil society to let people break their contracts whenever they have found themselves in a (usually self imposed) predicament.
Now, those of us that follow our contractual obligations, will have to pay to bailout those that don't follow theirs.
Seems fair in a government think sort of way. Sort of like Congressman Charlie Wilson is acting right now. Borrow ourselves out of debt!? Make the taxpayers pick up the tab because our Congress doesn't do their collective jobs by putting the halt to the Marxist in the White House and tell him NO when he wants to put our kids and grandchildren into debt.
Looks like Congressman Charlie Wilson is too happy to get a few table scraps to bring back to the district to help him get re-elected than doing his job by keeping our country solvent.
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This would virtually usher in the end of private property ownership by American citizens. Since the Dept of Commerce also regulates real estate licensing, sales, and transfers, the sales profession would be crippled due to lack of financing. Lack of financing would mean no selling or buying. It doesn't take a rocket scientist to see that, ultimately the government would own any and all real properties and then where will be be? The USSR prior to their collapse. Looks like we are going to have a Revolution to stop all this crap coming down.
ReplyDeleteAnd like the Fugitive Slave Law Penalties from the Dred Scott decision, conductors and station keepers of the Underground Railroad just ignored and refused to obey that law. Thank God, there were some real Patriots back then. We need more today.