Can the President do more about housing crisis?

By
Mortgage and Lending with Advocate For Fair Lending

I understand Bush is working on a plan to get more affordable home loans for those in distress. It was my understanding that loans do not cost people to lose their homes lack of income or loss of income due to job loss and unable to find new employment is why you lose your home.  I started in mortgage insdustry when prime rate was 9% people were coming of the Carter years of 18% and you had to put 20% down to be able to buy a home. If you didnt have that and went FHA every one you had ever met in your life better be prepared to write a letter of reference for you to still have the possibitly of being denied.

If you can afford your payment before adjustment you should be able to find a way to stay in your home. IF you are behind or going to foreclosure due to job loss then you have to go through normal channels at that point. One thoguht would be to allow tax breaks for the banks on their losses by writing of the  arrearages and allowing them to keep more capital. In turn havig more capital to write good loans and getting the first time buyer back into the fray. Without them there is no where to go.

Unfortunately that is only one aspect of what is coming in the near future: job losses. No construction (less building), Less trucks being purchased (less being made), layoffs at factories. Bush attempt with the stimulus may have staved off the word of mass destruction until his term is over(recession) Leaving the new president with dilema of finding jobs for the American people to live out there American Dream of Life Liberty and the Pursuit of Home Ownership!!

 

 

Comments (1)

Ernie & Barb Suto
Century 21 Preferred Realty - Pompton Lakes, NJ

They are talking about helping those folks in foreclosure, but in my opinion, it is going to end up like everything else!  Will it go to the people that legitimately need it?  Some times bad things happen to nice people, just not sure those people will reap the benefit.  We are in NJ, where it got so bad that our birth certificates were not valid, they have 5 generations on welfare, along with 5 alias names collecting!  To put through a plan and not properly supervise it, is not going to help the people with children who lost their jobs. The key is to implement a plan and SUPERVISE it!

Jul 10, 2008 08:16 AM