While watching the daily media coverage to bail out the present mortgage defaults, I can only shake my head! How dumb do the goverment think we are? The only one they are helping is the banks and that will back fire even more than the present crisis. They plow billions in to the banks and thereby creating a control system over the lenders (something they should have done a few years ago, a day late and a dollar short).
The people who are nearing foreclosure or are presently in default for the most part have no equity in their homes and therefore they can not refinance. The lenders insist that purchasers must have 20 down payment for a new purchase, with the average price of a home still in the $500,000's, not many people have $100K of available cash, pluys the closing costs.
So here are the banks with all the federal money, but without the public participation and/or borowers to lend the money too. The foreclosure process will continue, the banks and lenders will soon be like the Big Three of the Auto Industry, in essence we will have a failed banking system and nearing depression (don't worry about recession, worry about the big "D".
While this may sound like gloom and boom, I am my nature a upbeat person and 18 years in real estate will testify to my stamina. I just wish more agents and brokers would make the media and the powers to be aware that they are going about it the wrong way. They are taking care of the big machine (banks, lenders, etc) and the little guy is still out there trying to hold on to his/her home.
I am a Republican and I will not support McCain. For him to reference to the default home owners as it being their fault takes the cake. Mc Cain never had to worry about buying a house, his father in law with all his beer money has supported him over the past 45 years.
The only solution as I see it is a private agency, private lending organizations to come to the rescue and without federal interference but strict loan guidelines.
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