Q: I read your article in my local paper about how the new “Loan reduction program has steep qualifying rules.” I must comment on this article.

I am so tired and disgusted with the way things work. The hard working, responsible person always ends of paying for those who are not so. Instead of forgiving any principal balance, why not extend the mortgage out to a monthly figure manageable for the homeowner to pay?

There are folks that I know that spend way over their means and then claim bankruptcy. Once again, we, who are responsible and making logical cutbacks end up paying for these people’s sins.

A: Thanks for your response. I appreciate your comments and many folks agree with you. And, you are correct that many people have lived beyond their means and use the system to clear themselves of these obligations and everybody else ends up paying for their excessive consumption.

However, having another 7 to 10 millions Americans go into foreclosure isn’t going to help you, the hardworking homeowner who pays taxes. Also, a large number of those people may be just like you but have lost their jobs or have no health insurance. While their may be some people in that pool of millions that may benefit from some of the government programs and incentives, the vast majority have fallen into hard times through no fault of their own.

If you live in an area where dozens of homes will fall into foreclosure, it will undoubtedly drive down your home valuation. How does this help you?

The principal reduction program is mostly paid for by the lender and investor. They are picking up approximately 82 percent of the tab. The federal government will pick up a small slice – the so-called spoonful of sugar to get everyone on board with the program.

Having an ever-declining housing market is bad for you, bad for your neighbors, and bad for our economic recovery. The problem is I don’t know if these new programs will work any better than the HAMP Making Home Affordable refinancing and loan modification programs, whose success level has been dismal.

I appreciate you taking the time to read the column and respond. Thank you.