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housing prices will drop to where the affordability metrics make sense, there is absolutely no way the Fed, government or any other group of people can do anything about that regardless of bailouts or any other tactics. It's impossible to prop up housing values except to introduce loose lending again which is NEVER going to happen anytime in the next decade or two at the very least.
I can see your point. However, think of it this way.... Was that house REALLY worth 200k in 2006? No, it was the greedy real estate market that inflated that house price. In 2001 it was probably only worth 150k.
If this plan went into action, wouldnt housing values be reset to a more realistic amount - and in the end, the govt WILL get an influx of cash from a future sale.
Of course this does not help the H/O next door who bought an overinflated house and has maintained the payments on it. Then in the long run, the value of his house may not grow as much. Is that H/O then called greedy when he tries to sell his house and wants to make big $$ on resale, but can't because he paid too much to begin with?
I think that keeping H/O's in their existing home is the best financial move for the country - as long as they are making an effort. We do need to come to a solution quickly.
I dont think the idea is totally wrong - I think it just needs more work. The govt has to think outside the box if they are going to fix this problem. We cannot change the past, but we can change the future.
It's not the government's job to fix everyone's problems. Especially when the citizens cause them themselves.
There is no such person as "the greedy real estate market". Who do you suppose that is? The homeowners that's who.
NO, it was the greedy homeowner who TOOK THEIR EQUITY OUT like on TV My House is Worth What....and they're upside down now.
If the homeowner just ignored the fake value, they would have no problems. But these people didn't deserve to be in these homes to begin with , evidenced by their total lack of logic and financial immaturity.
This is not the first fake bubble and we all survived just fine between the late 80s through the late 90's. LIVE in the house and it will go back UP.
The country is based on the market straightening itself out in all cases. Government interference will make things worse. Since THATS how all the upside down idiots got in that mess to begin with. Bush and his friends trying to stimulate their financial institutions by claiming every citizen deserves a house. NO, they do NOT.
That's right. Regardless of their screw ups the past 8 years, the Dems are the Marxists. That's how this stupid housing bailout is going through. And all of the congress is going along with it, they are so desperate to get re-elected and since they are sure Obama will win, they're doing whatever it takes. And regarding Iraq, Reuters fought it, they said it was bull, they said there was no logic to the White House's claims, just like McClellan said.... and the liberal media cracked down on the press to not question Shrub and his shadow president ....so we got Iraq. Compliments of Shrub and daddy. And Rummie, the other half of daddy's buddies. ALL THE WHILE the Dems sat around pretending to be our representatives. Marxists.
I believe it was Maxine Waters that even slipped and made the sarcastic comment to the oil company exec when he was testifying that she would take over his company and socialize it....then she realized what she said and stuttered and stammered and changed it to "run it". Pelosi last summer said they were going to fix rising gas prices and it's 100 percent worse since she got in....Lying sacks....
I would be voting for Lou Dobbs if he would only run ha ha.
So and what will be the solution for the credit card debt that many of the same people have? Forgive them for buying fitness equipment, buying SUV's, other things they just liked but couldn't really afford...are we going to give them all that as a kind of Christmas present in July? What will be next...cut the price for the leased car because it is so sad....maybe some free vacations and a week at Disney for the whole extended family and on top of that free health care for the over weight that made them sick by eating at fastfood restaurants everyday and buying coffee at Starbucks.
Sorry I just needed to vent.
So and what will be the solution for the credit card debt that many of the same people have? Forgive them for buying fitness equipment, buying SUV's, other things they just liked but couldn't really afford...are we going to give them all that as a kind of Christmas present in July? What will be next...cut the price for the leased car because it is so sad....maybe some free vacations and a week at Disney for the whole extended family and on top of that free health care for the over weight that made them sick by eating at fastfood restaurants everyday and buying coffee at Starbucks.
Sorry I just needed to vent.
ROFLMAO
I wish I could continue laughing but it's so incestuous it makes me sick. Just wait until we get a load of the corruption that'll go on now when all these local governments get that money.
OK normally I'm all about the personal responsibility thing...but what about all the homeowners who bought a house they COULD afford, which was maybe overpriced at the time, but come on there was no REAL way of knowing that in some markets. Some were obvious, sure, but not all. But now my home is declining in value because other people bought homes they could NOT afford, foreclosures are everywhere, banks are selling for less than they are worth which drives down the prices for everyone ELSE. Now, my husband has a great opportunity in another city for a job..his company (which has been open 30 years) is closing at the end of this year, and the job market is terrible. But we can't move because someone ELSE screwed up...see this housing mess is not affecting just those who messed up. It's affecting a LOT of other people who did nothing wrong as well.
OK normally I'm all about the personal responsibility thing...but what about all the homeowners who bought a house they COULD afford, which was maybe overpriced at the time, but come on there was no REAL way of knowing that in some markets. Some were obvious, sure, but not all. But now my home is declining in value because other people bought homes they could NOT afford, foreclosures are everywhere, banks are selling for less than they are worth which drives down the prices for everyone ELSE. Now, my husband has a great opportunity in another city for a job..his company (which has been open 30 years) is closing at the end of this year, and the job market is terrible. But we can't move because someone ELSE screwed up...see this housing mess is not affecting just those who messed up. It's affecting a LOT of other people who did nothing wrong as well.
So true and HOA fees go up, property taxes go down ( but also less money for schools, police, etc.), but for the rest it is very annoying with all these properties in distress.
One of my neighbors said it as it is...many were greedy...wanted to flip fast and cash in and found out they couldn't and ended up as Landlords and were the worst Landlords and left others with bad tenants in their neighborhoods while just taking the rent and other neighbors with the mess...than just stop paying the mortgage and the properties are looking worse and worse while still taking the rent...and than foreclosure....because if they can't flip than they don't care and with no money down, why should they care...the governement is helping out and how bad is it to walk away from something you didn't own in the first place.
So we don't end up with things like the Franke Plan that the OP is talking about.
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( but also less money for schools, police, etc.
