How do the proposed Housing Bailouts affect taxpayers? There have been several ideas thrown out there so let’s cover a handful of them. The bailout proposals include:

• Reduction of property taxes.
• Assisting lenders in reducing the mortgage principal of at-risk homeowners.
• Subsidizing the same lenders who intentionally made subprime loans.
• Allowing homebuilders to carry losses up to 5 years back instead of the usual 2; resulting in additional tax refunds.
• Using Federal funds to backup mortgage insurance.
• Giving over $10 billion to distressed homeowners and mortgage companies.

All these plans share one thing in common: The use of Federal funds to bailout risky homeowners, subprime lenders and home builders.

And where do these “funds” come from? You. The hardworking taxpayer. Instead of concentrating on affordable housing and punishing lenders for their reckless lending, politicians would rather use public funds to bailout the very parties who got us into this housing crisis.

While irresponsible home buyers and greedy lenders get a free pass, those of us who are financially responsible pay for it with taxes and overpriced homes.

Patrick.net has a great article on this bailout topic: Can you spare a few thousand dollars to pay somebody else’s mortgage?