Charity is at the heart of the Church’s social doctrine. Our responsibilities and commitments to each other are spelled out by that doctrine which at its core is about loving one’s neighbor.
So that’s why when I see signs like the one above saying “Your mortgage is not my problem” and articles and columns detailing similar ideals my mind reacts negatively because I know that I am my brother’s keeper. So, in short, I know that their mortgage is my problem.
I think that’s one of the main reasons that the Democratic Party is so enticing to so many Christians. They hear of people in pain and the only party talking of doing something…anything about it is the Democratic Party which…let’s face it… has marketed itself successfully as the party of compassion. The party that cares about the poor. Or to put it bluntly, the party that says your mortgage is everyone’s problem. It all feels very Christian if you ignore the fact that the government is forcibly taking people’s money from them to establish another version of the Department of Motor Vehicles which will employ political toadies with responsibility to no one but their patron party bosses.
The Republican Party on the other hand has a strong streak of libertarianism running through it. And those ideas are often promulgated with a heavy emphasis on freedom. But the connection that conservatives have to charity and love for the poor is often left undiscussed. And without that I fear the Republican Party will continue to lose the social justice voters.
When I see signs like “Your mortgage is not my problem” that’s a problem for me. Look, I know what they mean. It’s a reaction to collectivism. And collectivism worries the heck out of me. I’ve read studies that seem to show that conservatives give more money to charity than liberals. But I think Republicans need to talk more about why freedom is good for everyone including the poor. I think the GOP needs to not only the party of that stirs a passion for freedom but the party that inspires compassion for all. And I’m not talking about the “compassionate conservatism” of George W. Bush who simply meant more big government but not quite as big as Barney Frank would like it.
I know that in societies with big government, people witness their neighbors in trouble and they shake their heads and say in pitying tones “The government should really have a program to help those poor people” rather than just helping people out themselves. In societies with big government the people in trouble tend to feel like they’re owed help and that when they receive help from the government they’re often ungrateful and ask why the government can’t do more. So we end up in a situation where the people who had the money taken from them are angry and the people who eventually received the money are ungrateful. Who does that help?
A free society must inspire those with to help those without. A free society that is to remain a free society must accept that someone else’s mortgage is their problem.
July 23, 2009 at 8:22 am
Geronimo, "decreasing home values" is as bad for the economy as inflated home values. In this particular case, it's the decreasing home values which are causing the mortgage crisis, since people stuck in high interest rate mortgages can not refinance due to the fact that the value of their home has dropped such that there is no way to guarantee the refinanced loan. I suggest you take a quick course on economics if you can't figure out how falling home prices negatively effects the economy.
July 23, 2009 at 5:13 pm
Anonymous,
And how did these people get stuck in high-interest rate mortgages? – by buying an overpriced house with an ARM with the idea that prices would continue to increase by 20% every year. That is called gambling. And we're supposed to help prop up these ridiculously high prices that never had any basis in financial reality, but were merely the result of a price bubble fueled by greed? I think it perhaps is you that needs to take a course in reality. The bubble has popped, and the sooner house prices get back to where they belong based on real economic realities the better everyone will be, including those who gambled and lost.
July 23, 2009 at 5:47 pm
I think the quote by Pope Pius XI was referring to the fact that people should freely help the poor themselves, without the welfare state redistributing the wealth according to the failed socialist/marxist playbook.
I know Julie, and she's no fan of big government!
Best,
Rob
July 23, 2009 at 5:57 pm
Geronimo, you are not very intelligent. The market says what the value of a house is. Period. It's all based on supply and demand. You are throwing around words like "bubble" and prices that had no "basis in financial reality". What an incredibly stupid comment. The free market IS a financial reality.
Selling one's house/car/goods for the highest price offered in a free market is a reality. If you think this is "greed", then maybe you are more suited for socialism. One of the major reasons for the fall in home prices is not because of supply and demand (i.e. a market "correction" which happens all the time) but because the government for the last 6 months has made it extremely difficult for banks to process loans for ANYONE, regardless of their financial qualifications based on previous criteria (i.e. credit scores) and put in an extra layer of bureacracy when it comes to sellng homes (i.e. "clearing houses" which have to assess appraisals). Once again, you really don't know what you're talking about on this issue.
July 23, 2009 at 6:37 pm
"Geronimo, you are not very intelligent."
It's always the anonymous ones who write stuff like this.
July 23, 2009 at 8:02 pm
A surgeon I know put it succintly: "If I decide to treat a patient for free, it's charity. If I am forced to treat a patient for little or no reimbursement, it's slavery." The resentment comes from being forced under pain of imprisonment or loss of livelihood. That sign might better read "Your mortgage is not a government problem." It might be said that that is the same as saying "not my problem," but there is a huge difference: the threat of force and compulsion behind government solutions. Kit
July 23, 2009 at 8:09 pm
I for one am sick and tired of people whining "affordable housing". If you can't afford it, no one is forcing you to buy it. People in big cities/wealthy areas act like it's their RIGHT to be able to live there. Sorry, but that's not the way it works here in the US. The immigrant population which BUILT the US 2+ generations ago worked hard to make a life for their kids/grandkids etc. It's only this recent generation that seems to have a misguided sense of entitlement.
July 23, 2009 at 11:14 pm
Anonymous you said,
"The free market IS a financial reality."
I agree completely. So let the market work and let's watch price of housing decrease.
You are wrong when you say that banks are finding it "extremely difficult for banks to process loans for ANYONE, regardless of their financial qualifications". They are more than willing to process mortgage loans for qualified buyers who are paying the July 2009 market price for the house. What they are not willing to do is give a mortgage for an overpriced property being sold at July 2006 prices. This is your free market at work and cannot be blamed on the government. In fact, the government is still trying to figure out a way to keep the market from working and keep those July 2006 pricetags.
I'm sorry if you gambled and lost. It's time to move on and let the market work. If that's what you call "socialism", then so be it.
July 24, 2009 at 7:41 pm
Geronimo, I didn't gamble and lose. Thanks to God, I was given a pretty sound and rational brain and we've made very good financial decisions. I do own my house and it is roughly 50k less than what we paid for it 3 years ago. Since I'm not planning to sell it anytime soon, it's a non-issue for us. The other rental properties we own are about 10 – 15% down in value. But since they are rented, we are doing well there too (thanks be to God).
I am however helping out several friends and family members at the moment going through the exact situation I mentioned. None of them gambled on getting a refinance, or speculating on real estate prices. In all 3 cases they needed to relocate to other areas since they lost their jobs and are needing to sell their homes to start over. And in 2 of those cases, there are qualified buyers who want to buy the homes at a very fair price, and the banks are trying to get them the money. But it has been 3 months so far in the process simply because the area in question is "hard hit" so the Federal govt has put in the "clearinghouses" which not only slow down the process, but have no accountability. I'm really sorry you don't seem to be very connected to reality and have swallowed the Obama brand kool-aid. If and when you get the chance to become a home-owner instead of seething at others and succumbing to your own sin of envy at those who have, hopefully for the sake of the population the situation will be rectified.
July 24, 2009 at 7:49 pm
One last comment: on a personal level the decrease in property values has been a bit of a windfall for us this last 2 years, since we pay about $12K less a year in property taxes. And while I am very grateful and would not dream of giving it back, I also realize this equates to less county services (this is especially visible in the lack of response to urgently needed roadwork). So, if I were a selfish man, I could agree with you about the falling prices. But there is a bigger picture here which affects a lot more people in the long run.
July 24, 2009 at 7:57 pm
It's not just people who get overextended that's been the problem. When I was shopping in 2005, mortgage companies in the DC market were reluctant to lend to anyone spending LESS than $500K. I knew I could never qualify for that big of a loan, nor did I want to.
That's the part of the equation that strikes me as motivated by greed.
July 24, 2009 at 9:31 pm
Mortgage companies are like car dealerships; some specialize in high end and some lower. Some are unscrupulous and some are very reputable. If you don't like one, you can move on to the other. Or go direct to the "factory" (meaning a Bank). And like everything in life, it helps to do your homework and check references.
July 24, 2009 at 9:37 pm
I went to three. The loan has since been sold twice. I'm now with a reputable company, which has been very good to me. And I never miss a payment. Never.
July 24, 2009 at 10:09 pm
If your loan was sold twice it means you are a "good investment". Every loan we've had has been sold at least once (and usually it's within the 1st month of it closing). I don't know when the last time you refi'd, but most lenders are obligated to at least adjust the rate now that they've come down. It usually doesn't take much to get them to adjust the rate, especially for someone like you with a good payment history. We paid $700 and brought the rate down 1.275 percent (and it was instant, unlike going through the process of a refi which makes you want to tear your hair out). I'm sure you've explored everything there is to help you and your family out. I'm just passing it along as I'm hoping someone would do the same for me.
Like I said before, thanks be to God we are doing quite well, which is allowing us to take advantage of the lower rates and property taxes. But that doesn't blind me to the fact that this is not a good situation for the nation as a whole to be in.
July 24, 2009 at 10:30 pm
Thanks for the advice. It is duly noted.
July 24, 2009 at 10:52 pm
Anonymous, I'm not sure why you find it necessary to attack me personally. You know nothing about me or my financial situation. You obviously believe that extremely high housing prices is a good thing for society. I happen to believe the opposite and am very glad that prices are dropping and that more people will therefore be able to afford housing. I'm sorry that your friends lost their jobs, but the fact that they now can't sell their houses for the inflated prices that they paid for them 3 years ago is not a reason to artificially keep the bubble inflated. Of course, mortgage companies now do not want to give a mortgage for more than the property is worth. They would be foolish to do so, which is what they did from 2000-2007 and now the whole economy is reaping the disaster that resulted from that foolishness. Let the free market (that you claim you believe in) work.
July 24, 2009 at 10:59 pm
One reason that houses are more expensive, is that we want bigger ones. From 1950 to 2000, the average house in the USA doubled in size, and holds half as many people. My townhouse is a one-bedroom with den, built in the 1940s, and converted to condo in the 1980s. It is about 800 square feet. Even if I marry and the bride moves in, it should suffice.
Assuming she agrees with me.
July 24, 2009 at 11:18 pm
Also, Anonymous, please point out to me exactly where I was "seething at others" and guilty of the "sin of envy" and a "selfish man". And please tell me what the "Obama brand kool-aid" (which you claim I drank) has to do with housing prices. Please be specific in your answers and don't engage in personal attacks that are not related to the issue we are discussing.
July 24, 2009 at 11:22 pm
I think everyone should be responsible and pay their own bills. Why should I pay for your bills? All of you sicken me. You're nothing but bunch of bleeding hear liberals. I know what you're thinking; that I'm some redneck driving a pickup truck with a gun rack but for your information I'm highly educated and I drive a volvo and sip on lattes so the rest of you can pay your own mortgages.
July 24, 2009 at 11:41 pm
"I know what you're thinking; that I'm some redneck driving a pickup truck with a gun rack but for your information I'm highly educated and I drive a volvo and sip on lattes so the rest of you can pay your own mortgages."
Well, we've obviously misjudged you, what with driving a Volvo and all. Not everyone here is a "bleeding heart liberal." Most readers of CMR are anything but that.
And for the record… dammit, I insist on paying my own mortgage.