Thursday, October 16, 2008

Lenders prey on kids

In case you weren’t already outraged at the bailout for Wall Street, check out this op-ed in the New York Times on how parents are being disproportionately hurt by the mortgage crisis (AKA the predatory lending crisis). According to Eric Nguyen, “Nearly two-thirds of those trying to save their homes in bankruptcy have young children.” Among the many nasty elements of the disastrous bankruptcy bill passed in 2005 was one making it much harder to renegotiate the terms of a mortgage on a primary residence than on investment property.

Nguyen imagines a mother who becomes ill, racks up medical debt, and can’t pay the mortgage on her children’s home, then compares her with a wealthy childless couple who invest in a condo, run up credit card bills, and declare bankruptcy. Who winds up on the street? The kids.

Oh, and by the way, who voted for the bankruptcy bill? John McCain. Barack Obama voted against it. (Shamefully, though, his running mate Joe Biden voted for it.)

No comments: