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Why Obama Wants High Home Prices | Danville Real Estate Trends (http://gregfielding.housingstorm.com/2010/01/27/why-obama-wants-high-home-prices/?source=patrick.net - broken link)
That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments
How quickly they forgot what got us into the mess to begin with..
Why Obama Wants High Home Prices | Danville Real Estate Trends (http://gregfielding.housingstorm.com/2010/01/27/why-obama-wants-high-home-prices/?source=patrick.net - broken link)
That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments
How quickly they forgot what got us into the mess to begin with..
I understand we will have different views on intepretation, but I for one don't see a problem with this. You have the folks (unfortunately due to bad decisions) with these mortgages where almost NONE of the principle is getting paid off, also they owe more than what the house is worth. Apparently, these loan modifications & refinancing is and was suppose to address that,
Now I where I will see a problem is if the same BAD practices by the back that got us here in the first place is not monitored closely.
Loan modifications do not help a house's value. The person having the mod can simply sell the house for a decreased price and still realize a profit, pushing the value of houses down. The end result is the same as with foreclosures (assuming the foreclosures could've been bought for pennies on the dollar instead of just sitting there courtesy of bank bailouts)
Loan modifications do not help a house's value. The person having the mod can simply sell the house for a decreased price and still realize a profit, pushing the value of houses down. The end result is the same as with foreclosures (assuming the foreclosures could've been bought for pennies on the dollar instead of just sitting there courtesy of bank bailouts)
Summer this is what I took away from the statement below
"That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments."
When the President stated lift the value and savings on mortgage payments" as a indication that with the modifications and refinancing the more of the homeowners payments would go towards their principle investment. I didn't take away that he wanted to raise the housing values - AGAIN
This is a complete fallacy. The only way home values will rise is when the "market" their in rises. Loan modifications and refinancing WILL HELP, they will slow and stop foreclosures, quick sales and/or just the more popular every day, just walking away. Once the market stabilizes, a floor will form and the market will start a SLOW but incremental move upward.
Hence...the President's statements are true. Obtuse, and extremely generalized, but true.
Summer this is what I took away from the statement below
"That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments."
When the President stated lift the value and savings on mortgage payments" as a indication that with the modifications and refinancing the more of the homeowners payments would go towards their principle investment. I didn't take away that he wanted to raise the housing values - AGAIN
You didnt take the statement of
"lift the value of a family's single largest investment" to mean
he didnt want to "raise the housing values".. ?
You didnt take the statement of
"lift the value of a family's single largest investment" to mean
he didnt want to "raise the housing values".. ?
Of course. If you lift something that has a negative value, and move it to a neutral or barely net positive value...you have lifted the value. Attempting to say that is creating or attempting to create a bubble is another thing entirely. To create a 'bubble' you would have to have more than a double digit increase in a short amount of time. I don't think any of us, on either side see that happening.
You didnt take the statement of
"lift the value of a family's single largest investment" to mean
he didnt want to "raise the housing values".. ?
No I did not as I stated before. No where in his statement did he say that, but again everyone inteprets things differently and considering he didn't come straight out and state what either one of us intepret I guess we'll have to agree to disagree.
Of course. If you lift something that has a negative value, and move it to a neutral or barely net positive value...you have lifted the value. Attempting to say that is creating or attempting to create a bubble is another thing entirely. To create a 'bubble' you would have to have more than a double digit increase in a short amount of time. I don't think any of us, on either side see that happening.
What? Since when did homes have negative value? I must have missed that part of the economic cycle..
Obama has been lobbying efforts to help maintain the high prices in homes, he has said that from the beginning and has tried to do so from the beginning... Obama's original reasoning was that keeping home prices artificially high will help slow the recession and preserve the investment of the homeowners... of course, he doesn't realize that it also continues to make homes unaffordable to the rest of the people... I think Obama is "evolving" his line of thinking now in that he wants to maintain the still artificially high prices in homes so that people can still do loan refinancing (banks won't refinance you if you owe more than the house is worth) and be able to keep their homes... basically Obama doesn't want people who have put money into their homes to get nothing back when they lose their home, he is hoping they can keep their homes... a lot of people lose their homes for one reason or another, some through misfortune and others through greed/incompetence... How "long" Obama is able to keep home prices artifically high is unknown because it costs money and political backscratching to do (which costs taxpayers in the end)... Obama is holding out until a large portion is "helped" and then I believe he will let the housing prices crumble to appropriate levels... Yes, he is making the housing problem last a bit "longer" but in return, he is trying to save the houses of people who want to keep their houses...
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