My friend refinanced his house to buy a pool and 2 cars. Under McCain’s proposal does he get to keep them?

Question by Barometer Soup: My friend refinanced his house to buy a pool and 2 cars. Under McCain’s proposal does he get to keep them?
When house prices were skyrocketing in California, a lot of my friends refinanced to take equity out of their homes. They used the equity to buy cars, vacations, pools, etc. Now that house prices have fallen, however, they have 2 or more mortgages and are “underwater”.

Obviously, there is no way to take back a vacation or a pool, but under r McCain’s proposal to buy their bad mortgages and reduce the balances – will they get to keep their Beemers and Mercedes?

Best answer:

Answer by War Kittens?
They have to prove they can’t pay. I would like to know why I don’t get a break. I pay my mortgage every month. I don’t even have cable. Why don’t I get a break?

What do you think? Answer below!

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8 Responses to My friend refinanced his house to buy a pool and 2 cars. Under McCain’s proposal does he get to keep them?

  1. Ryan F says:

    I sure hope not… maybe I’ll just buy a bunch of new cars and enjoy them till I go under and let the Government bail me out so I can do it again…

  2. Kat O says:

    Funny– (sarcasm)
    There are people losing the ONLY home they have– no extras- just the home– and your “friends” are worried about being bailed out??
    THIS attitude is what is screwed up about our whole country.

  3. kerfitz says:

    If they are in default of their mortgage… yes…. since they used the equity in their house to make the purchases. I don’t agree with it. I think that all those people that bought more house than they could afford and the banks that lent it to them should all have to live with their decisions…. if that means that people lose their homes…TOO BAD!!! you should always live within your means… if it means that the bank goes into bankruptcy..TOO BAD!!! You should have dealt honestly and responsibly with people…. I have no sympathy for any of them.

  4. lv_consultant says:

    …using the house as an ATM is what got many people into trouble as it’s obvious that they are living well beyond their means. pulling out equity out of a home to by a car which is an expense not an investment is pure stupidity. I hope that people like that under either McCain’s or Obama’s plan are not covered.

  5. bradys_mommy says:

    Do you people seriously not realize that this is a bogus question? Good Lord. Nobama supporters *gag*

  6. Michael G says:

    He should have waited for President Obama, He just promised all kinds of refunds and rebates and pay your mortgage, Obama would have bought him a pool and 2 cars just for his vote.

  7. snoopmish says:

    They better not! That was extremely irresponsible and quite frankly they deserve what they get. That is just about the stupidest thing they could have done.

    and NO…..they did this to themselves. Having two mortgages because you wanted stuff is not part of a deal like that. This is for people who can not pay for their homes because of the illegal financing and/or losing work…..not just because they wanted cool stuff. If they are having trouble why don’t they sell the crap they bought.

    Absolutely unbelievable.

  8. TK says:

    The short answer is yes. As unfair as that might seem, your friend would not be forced to deleverage his assets under the McCain proposal.

    There are, however, ways other than the McCain proposal that would permit the federal government to jump start the real estate market for principal residences, which is a benefit for all homeowners, and for all municipalities who rely on real estate tax revenues to fund elementary and high schools, police, fire and emergency services, and ultimately for the economy since 70% of the American economy’s existence is derived from consumer spending. He just doesn’t have sufficiently competent economic advisors within his campaign to show him that can and should be accomplished. (And it isn’t like you have to have a degree in rocket science to figure it out. In fact, the execution of the plan would be more difficult than its conception.)

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