In the current discussion of those who are "underwater" in their mortgages, I hear nothing about the practice which was popular when housing prices were climbing, that of home equity loans. I have compassion for those who would lose their homes because of faulty loans or other illegal practices. Perhaps monetary assistance should be made available to enable them to avoid foreclosure.
However, if anyone has ever taken out a home equity loan on that house and has spent that money for whatever else, I believe that we, as taxpayers, should not pay to save that home from foreclosure. At the time, it seemed obvious that spending the equity in one's home was a risky thing to do. Now, apparently, we are willing to reward that foolishness with a bailout. Surely there are records somewhere that show whether or not equity was loaned on any of these underwater homes. If so, they should be disqualified for financial assistance.
Salt Lake City