Feeling Distressed

I am feeling distressed.

I have talked to a couple banks recently about mortgages. Right now they are offering very favorable terms if I am "distressed".

I have always paid my mortgage (almost always on time), have equity in my home (meaning I owe less than its worth), make descent money (meaning I can afford my mortgage), and have a good employment record.

But banks are willing to offer below market rates if have not been able to do two or more of those recently. This means if I am a slacker who does not pay off debts, borrowed more than I should, or cannot keep a job, the bank will give me a favorable rate (plus I get a $1000 a year tax credit!).

One bank said I could get a 2% loan but since I was not distressed they would only offer me 5.125% to re-finance.

Now I recognize some people have lost their jobs because of the economy and others were misled by corrupt mortgage brokers. Those people should probably get a break.

But if my neighbor is a bum, who does not work or pay his bills, he gets a break while I have to pay in full. Judges have even been granted powers to reduce debts for these people. You even qualify for a tax credit.

That does not seem right to me. Why do they get a break for not doing the right thing? In the end the majority (95% of us) who are doing the right things will pay for them.

Because of this I am feeling distressed.