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Should the feds help people who got into a bad mortgage?

By
Real Estate Agent with Coldwell Banker Select Real Estate
Some people would say that anyone old enough to buy a home and qualify for a loan should take responsibility for the loan they got themselves into. After all they are adults. However, we all could be guilty of trusting the professionals we hired to sell us a home and provide us with the money to pay for it.  It is an area of expertise with a language and life all of it's own. So perhaps we all can agree that 'shame on ignorant people who bought homes with bad loans and didn't read the fine print'  I believe, it could have happened to many of us if these market conditions were around with these lenient lender rules when we were younger or less experienced in real estate transactions.  If the loss of their homes only effected them I would not be writing this blog. The effect of people losing their homes due to their ignorance of the world of borrowing money will trickle down to all of us.  The market is being flooded with foreclosures. Property values are dropping simply because supply exceeds demand. People who really need to sell their homes because of real life issues, like a job transfer, divorce, the family got bigger or the kids went to college and the family got smaller can't sell.  These people are getting hurt because it is difficult to sell their homes without a serious reduction in the price.  People who lose their homes move into rentals. The investors who purchase these foreclosures will turn them into rentals. They will allow the tenants to make their mortgage payments until the market conditions change. So the rich will get richer and the poor and struggling will get poorer and struggle harder. The person who lost their home may have to pay lower rent but come April 15th they will have lost the biggest tax deduction they had.  I say "Yes, the government needs to step in with a little help here."  We only need government for those things we cannot do for ourselves. We cannot balance the nations real estate investments now . . .  not by ourselves. It is bigger than one homeowner. It is bigger than all of us.  It needs a national solution because it is a national problem.
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
I am not sure I agree. I think if they step in it should be to keep the mortgages going and get companies to adjust the rates. So the good payers get relief and the bad payers ....
Dec 01, 2007 01:44 AM
Aslan Realty Advisors, LLC
Fort Myers, FL
Staying a step ahead with Pride!

Check out the "New Hope Alliance" or here is my blog from this morning on the details of it:

http://activerain.com/blogsview/291917/Is-it-a-good

or here is one from a few weeks back that actually has links to the program:

http://activerain.com/blogsview/255976/-Hope-Now-New

HUD No. 07-152
www.hud.gov/news/

Best to you...Paige

Dec 01, 2007 01:51 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County
The biggest challenge is to manage the national economy vs global economy. Yes, it is an individual responsibility but the big picture is the main issue.
Dec 01, 2007 02:03 AM