That could be one of the most intriguing, not to mention controversial, questions of the day. Congress and the rest of the government, especially president Barack Obama, believe that it is not the best solution and that everything, no matter the cost, should be done to minimize foreclosures. In other words, they are willing to sacrifice the many to save the few.
Don't get me wrong, it sucks that people have to go through foreclosure, just like it sucks that a large percentage of American homeowners are upside down, owing more than their home is worth. The problem is that most foreclosures these days are happening to those whom deserve it. You heard me right, they deserve it. They likely have bought more home than they should have, over-leveraged themselves to get into the home, or simply didn't plan for the worse. Creative financing is generally not the problem, nor mortgage professionals whom put them in those programs. Sure, there are some exceptions, but not the norm.
We can lay blame on a number of factors, much of which stemmed from our government to begin with. Other factors, and those which are more likely the causes of foreclosures, stem from the way Americans handle their debts, including using their home as an ATM machine and wasting away their equity instead of investing it. The bottom line is, no matter what got them to the point of facing foreclosure, allowing foreclosures versus the government "salvation" programs are likely the best solution and the quickest to get through the problem.
How can allowing a family to be kicked out of their home due to foreclosure be the best solution, even if undeserved?
To read the rest, please head over to Florida Mortgage Report...
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Good post Robert and unfortunately a serious topic that really needs to be looked at. I guess in the end the market may dictate our path and leave us no choices, resulting in all the foreclosures we are fighting to avoid; but how much taxpayer money are we going to throw away in the process?
Gerry Suarez, Jr.
Your FHA Loan Pro!