Should Bailed-Out Homeowners

[moundsview]

Be Required To Pay Restitution?

By STAN LIEBOWITZ | Posted Tuesday, March 17, 2009 4:20 PM PT

The U.S. public is outraged at the $165 million in bonuses paid to employees of insurance giant American International Group after AIG received billions in government bailout funds — and Washington is looking for ways to make bonus recipients pay back the money.

But what about bailed-out homeowners? Shouldn't they also pay back money they receive from taxpayers?

The government can provide stressed homeowners the help they need — and recover much of the cost — simply by taxing most of the capital gains that bailout recipients realize on home sales until the value of the assistance is fully paid back to lenders and taxpayers.

Let's be clear: The administration's plan to help homeowners avoid foreclosure is a giveaway to those homeowners.

And a restitution policy would have many benefits besides reducing the burden on taxpayers and lenders and providing economic incentives for future homeowners to avoid similar mistakes.

http://www.ibdeditorials.com/IBDArticles.aspx?id=322181751850052

The government should get 1st crack at any capital gains, liens need to be filed.

[Make7]

1. Is the government giving cash to home-owners to bail them out? ( n/t )

[Demeter]

2. Surely You Jest!

While there are proposals to pay off part of the principle for underwater properties, I don't think any have come even up for a vote.

[Make7]

6. Then what restitution would home-owners be paying exactly?

Wouldn't the government basically be giving the "homeowner bailout" money to the banks and investors? Or merely helping to ensure that the banks and investors get mortgage payments by refinancing rather than sticking them with a foreclosed home they can't sell for a reasonable price?

[azurnoir]

3. Does this guy work for AIG? n/t

[bemildred]

4. I think they ought to get retention bonuses. nt

[Waiting For Everyman]

5. Alrighty. Right after the banks and the investor class pay back the homeowners

for driving down their property values and putting 3 million people out of work since last Fall.

Next!

[Zenlitened]

7. What bailed out homeowners?

:shrug:

[debbierlus]

8. Exactly