Sunday, October 17, 2010

Foreclosure Freeze- Will it make it worse?

cross posted at What Makes Us Right

I have been talking about this for sometime now, and finally people are starting to understand.  Simply suspending foreclosures because of technicalities will eventually do more harm than good.  Delaying the inevitable and waiting to get these homes on the market cannot be good for a market that is already struggling.  Yes, foreclosed homes will be bring down the value of homes in a neighborhood, but getting these homes on the market will also stimulate new home buyers.  Which as you all should know, is key to stimulating economic growth.  Driving up home sales will ultimately lead to increases in non foreclosed home sales, which will start to restore values to some level of normalcy.  By no means will the house prices return to the bogus inflated values that we saw in the last 10 years; nor should it.  These inflated home sales are the primary cause of the troubles we are in today.  People borrowed against homes based upon ridiculous values, and now they cannot afford the bills.  Please do not blame just the banks for this.  And please do not blame George Bush.  This is a problem of society, and the lack of consumer responsibility.  We will get through this, slowly.  If you think that you are going to rich based upon the value of your home, wake up... It shouldn't have happened 10 years ago, and it is not going to happen any time soon.  However, if you want to get it going in the right direction, quit bitching about the banks and their paperwork shortcuts, man up, pay your bills, or move out, and let's get on with getting things corrected....



2 comments:

Christopher - Conservative Perspective said...

I agree, but they are at the same time now repeating the lending practices that lead us to this point.

Most think sure, the house is at half or less value do to the economy and they get it at foreclosure value, easy to afford and get a loan, right? This creates a 'bubble'. Then taxes go up (inevitably) and the owners default yet again.

The problem IS GOVERNMENT! Get the damn government out of way and let the market decide!

Go back to at LEAST 20% down on a home no matter the value and for petes sake prove they have a frickin' steady income.

This is the only way that particular market will rebound.

What Makes Us Right said...

ACCOUNTABILITY! Right on Christopher!