According to a Los Angeles Times blogger, California congresswoman Laura Richardson "walked away" from a $578,000 mortgage on her Sacramento home that she purchased with no money down http://www.typepad.com/t/trackback/816965/29322186.
Now, am I supposed to feel sorry for her? Should I, a taxpayer who does NOT own a home bail her out? Should people losing their homes for their bad financial decisions be something the government do anything about?
No. No. No.
The congresswoman should have been smart enough to handle her own finances. If she bought a home with no money down, one of two things. One, she had excellent credit. Two, not putting any money down is a very unwise way to buy a home. I do not feel sorry for her.
As far as any government entity bailing out these people, I do feel bad for people who made bad financial decisions. But, it is that person's responsibility, not our collective responsibililty. The government has no business or reason to set up ways for people making bad financial choices to weasel out of them. The people and lenders need to work things out and if not, the person will have to be foreclosed.