Mortgage notes

I've owned three houses in my life. Well, I bought them. I haven't paid a single one off yet, and I live in a house I bought in 2004. I like my house and my wife and I can afford the mortgage note.

I don't know what it's worth. I've got a pretty good idea that it's worth about what I paid for it. Local housing prices haven't seemed to fluctuate much in the past couple of years. It's a suburban house on a suburban lot and it would be listed as a 3BR, 2B, garage, brick veneer. Lovely back yard with privacy fence. If you've ever looked at the classifieds you've seen a million of them.

I understand that we're bailing out folks who can't pay their mortgages and I'm pissed off about it. So is this guy, who writes it better than I can.

The only people affected by plummeting real estate prices are the ones who bought a house that cost more than they could afford, hoping for a spike in value so they could sell at a profit or take out a new loan based on an increased value. Their home wasn't just a place to live; it was an investment they thought they could liquefy at will. If we're saving these poor souls from the 26.7% drop in their investment, we should give twice as much aid to everyone who has lost approximately 50% in the stock market since its peak.

If you watch the cable channels, you've seem the Flip This House type shows. Folks buy a house, fix it up, then sell it for a profit. It's good work if you can get it. On the other hand, if you buy a house at the top of the market and try to sell it at the bottom of the market, then you're going to lose money. That is really basic.

Another thing that's really basic is that something is only worth what someone else is willing to pay for it. Right now, people aren't willing to spend top dollar on real estate. The market is depressed and it's a buyer's market. Credit is tight and there isn't much money flowing. However, if you live in the house and pay the note, you'll be okay. It's the American Way. The most traditional way of accumulating wealth in the United States is with real estate. The house you buy and live in.

I have absolutely no sympathy for those folks who bought more than they could afford and now they're stuck with a note they can't pay. Screw 'em! That's the American Way.