I was hoping for a boost to the nearly one fourth of the homeowners in the United States that are underwater and in foreclosure or facing it from President Obama in his last speech. Not a word was mentioned. Unless housing gets well, how can anything else make a difference to the American economy at large?
HOUSING ALWAYS CAME THROUGH
Housing has always been part of any recovery in every other Real Estate cycle and jobs automatically come with it when it does. How can anyone feel good when problems of this magnitude go unresolved and unaddressed? People do not feel good about the presnt or the future and that affects spending habits
HUGE PACHYDERM IN THE ROOM
Not one mention of giving relief to the several million borrowers in foreclosure. No principal reductions, no lowering of interest rates or moratoriums to deal with it all. Nothing. This is the main problem and possible ROOT of all our problems. Why is this not talked about? What power is in play here?
WORKABLE TWO STEP PROGRAM
First step we have already taken. We bailed out the banks and they have manged to squirrel away about a trillion dollars of funds of which they are hesitant to invest or release. The second phase should be to bail out the homeowners and borrowers. Makes perfect sense too. Those are the two injured parties and unless they both get well, there is no recovery. How can you help one and not help the other?
SHADOW INVENTORY
Furthermore none us really know what any banks strategy is in regards to releasing their shadow inventory. Houses remain vacant, boarded up and neglected while things available take months and months to turnover. The banks play a very important role in the recovery process. The way it looks now, only they have recovered
LOAN MODS FAILED
Amazing point of fact that there are people who have interest rates that are high and out of line that the banks can reduce to at least market rate which would lower payments keeping people in their homes. It is not rocket scientist to do either. Any loans for interest rates in excess of 6% should automatically be rolled back.
EQUITY MADE YOU FEEL GOOD
Remember the feeling of having equity in your homes? Just knowing it was there made someone know that they would never face poverty or uncertainty again. It was a security blanket that worked. People worse case scenario if all went wrong was to sell their beloved homes, cash out and then rent using their equity funds to survive. Now, plan B (equity) is all but been eliminated
THE GOVERNMENT MUST GOVERN
Unless the government steps in and under the guise of National Emergency taking decisive steps to stop the spiraling downward of the American people in foreclosure, the problem is beyond self-correction for short term remedy and long term will benefit no one between now and then.
Comments(0)