More Government Help for Housing Market....Is this Good or Bad

The government is looking to send more aid to homeowners through various new programs. One program would help qualified homeowners refinance their mortgages if their property values have fallen below the amount they owe, and the other includes another round of funding to help the unemployed or underemployed with their payments.

While these programs may sound great, the reality is NO government program has had any effect on helping homeowners or the housing market.

At what point should the government just admit it cannot make an impact on the housing market?

Evidence is mounting that government interference in the housing market might be doing the broader economy more harm than good, at least for the long-term. A government tax credit that expired in April to encourage home buyers did help boost sales, but that proved only to be a temporary crutch. An estimated 950,000 homeowners are going to have to pay that tax credit back due to them not being able to afford the house. The Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP) may have slowed the rate of foreclosures some, but the programs have largely been criticized for failing to give homeowners permanent relief. In fact, it’s estimated that 75% of those who entered the program will have been foreclosed upon.

The bubble has not completely burst yet, and the government keeps trying failed policy after failed policy to keep prices inflated instead of just letting the market settle. Experts say home prices – which have fallen by more than 30% since 2006 — are still inflated by 15% to 20% in many areas. Certain areas, such as Arizona, California, and Nevada, aren’t expected to get back to ‘normal’ until the 2030′s.

Paving the way for a true market correction would not be easy to endure — letting home prices free-fall is a scary thought. But is a gradual decline that could prolong real economic recovery really any easier to stomach?

Endurable Property Solutions (EPS) is a group of local Phoenix Realtors and Real Estate Professionals dedicated to helping distressed homeowners sell their homes without having to come out of pocket in the Phoenix AZ area. EPS is a proud member of the Better Business Bureau that networks with several cash buying investors across the Phoenix Valley. For more information on EPS please visit http://www.PHOENIXSHORTSALESOLUTIONS.COM.