Los Angeles City Councilman Richard Alarcon called for city, state and federal funds to help bail out city homeowners who can’t pay their mortgages.

“We’re in a crisis. We don’t need bureaucrats who are going to sit on their thumbs and not get things done. Who do we go to in federal government to ask for emergency assistance to help solve this crisis?”said Alarcon according to a published news article.

He further said, “It seems to me we’d better kick the federal government in the butt to get into action to help us solve the problem, and I don’t think we’re doing any kicking now.”

True, 1,074 homes were foreclosed on in Los Angeles County  and according to the Daily News, “Notices of default, the first step in the process and usually taken when payments are at least three months late, increased 145.3 percent, to 4,009, in L.A. County. ”

Now even consumer advocates in Sacramento are pushing for a moratorium on foreclosures.

According to what I read, “Alarcon has proposed using city money for an emergency-loan program to help homeowners on the verge of foreclosure.”

The Daily News also quoted Lori Gay, president and CEO of Los Angeles Neighborhood Housing Services as saying  “We’re seeing people who borrowed $600,000 and can only afford $300,000.”  “If the city does not take a leadership position … your numbers are going to stay where they are and get worse,” she said.

But I am not supportive of government involvement for peole who made bad choices or lost their jobs.  In good times we give people $250,000 every two years when they sell their homes.  I am sure that some of the people in the jam right now benefitted in years past from buying and selling every two years (the amount of time required to live in a home to get the $250,000.00 tax free). 

Why should the taxpayers bail out mortgage lenders and buyers who engaged in expensive loans while the market was hot but are now seeking help?

Where is the personal responsibility?

According to the Daily News ”Alarcon argued that people should be concerned about the larger impact mass foreclosures will have on the community and the ability of people to qualify for homeownership.”

As reported, “Alarcon said he will ask the council to endorse several measures, including asking the federal government to help fund more homebuyer-assistance programs and make adjustments that would lower the cost of mortgages for Angelenos.”

Believe it or not he also wants legislation that requires mortgage education classes for first-time homebuyers.

And I am too much of a gentleman to publicly state what I am thinking RIGHT now about Councilman Alarcon.  But feel free to respond.