Editorial: Sub-prime bailout at taxpayers' expense

It’s becoming popular in some political circles to push for the federal government to bail out mortgage lenders and homeowners in foreclosure who are being run over by the sub-prime bandwagon.

With the presidential primary season around the corner and the general election now less than 11 months away, many in Washington will try to make political hay by saving the people from themselves and, in some cases, predatory lenders.

This is not a good expenditure of the public’s money.

We don’t think taxpayers should have to bail out these lenders, who hawked loans to people they knew would not be able to afford them when rates reset at higher rates. The scope of the federal government’s involvement with these lenders should be an investigation into their unsavory tactics and, where warranted, a tightening of regulations and oversight.

Similarly, the folks who signed on the dotted line for these risky loans should have known the deals were too good to be true. We doubt it stated in the fine print that taxpayers’ would pick up the tab if they suddenly could not make their payments.

For homeowners who are anticipating the date when their sub-prime interest rates reset in the coming months — and there are many, many more to come — now is the time to take action. Rep. Virginia Foxx (R-5th) is encouraging those who are having a difficult time making their mortgage payments to contact a group called HOPE NOW Alliance, which can help consumers save their homes and their credit. The phone number is 1-888-995-HOPE.

If you’re in this sinking boat, you’re better off taking action now. Counting on the federal government to save you is always a risky proposition.