Help for struggling homeowners meant to kick-start stalled housing industry -- again
Lewis DiuguidIt’s important to view the latest Obama administration help for foreclosed and struggling homeowners in the same way that people saw the stimulus money for first time homebuyers.
Each was designed to get the housing industry moving again. Qualifying first-time homebuyers three to four years ago got tax credits of up to $8,000 toward the purchase of a house.
That got people who had been on the fence during the Great Recession to make the investment in the American dream. The $25 billion deal from abuses by five major mortgage loan processing companies handling foreclosures is meant to again prime the housing pump.
The few thousands of dollars to individuals will give a lot of people needed relief from the personal debt crisis they are facing and others who owe more than their homes are worth the ability to make improvements on their property or sell them to move elsewhere for jobs or that dream home. The money will not be enough to fix the nation’s economic problems, but it will help to get things moving again.
That could spur new construction and drop the unemployment rate even more. President Barack Obama will take any gain from efforts now into the win column for the November election.
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George Hunsucker
Northland
3 months agoearth to lewis #6….
lewis, this is nothing but a govt. ripoff that new home buyers will wind-up paying. To think that govt. confiscation of private money is somehow going to “help” the housing industry is “interesting” to say the least..
govt. needs to get out of the way and let the market clear the glut of overpiced houses. Only then can a recovery in this industry being. All the tricks jimmy obama is trying merely prolong the agony. But, this is not surprising from a chicago community organizer who never held a real job. What a “leader”….
Chuck Close
3 months agoThrough lewis’ lens Obama’s negotiated and directed reliefs are designed to kick start the homebuilding trades while exacting a small measure of “revenge” on the big banks who “caused” fools to overbuy.
Those who view Obama with skepticism find this to be a virtual slush fund targeted to facilitate financial relief to likely Obama voters.
While I am certain that the former is transparently, comically false, I am also hopeful that the second is less than correct.
History teaches those who care to investigate, that falsely propping up real estate is a recipe for further delaying if not exacerbating the inevitable catastrophic crush of the collapse.
Check Argentina and Japan.
Ideology has long trumped the historical lessons in Obama’s formulas for economic stimulation. The real estate market will have the opportunity to recover organically once the sludge has been allowed to clear. But not before.
George Hunsucker
Northland
3 months agoIn lewis’ world, this will also help the auto industry, in addition to a few 1%ers he claims are getting too much help…
http://dailycaller.com/2012/02/13/obama-hikes-subsidy-to-wealthy-electric-car-buyers/
more pickin’ winners & in this case, losers, from jimmy obama who obviously is Mr. Clueless….
Kay Fox
Kansas City
3 months agoLet’s punish the adults who read the contracts, paid their monthly payment on time, by giving their tax money away to others who may or may not be helped.
The real estate market needs to adjust downward until it hits bottom, levels off, then naturally increase again, it’s called a correction.
I’m sorry for those who lost, but what were they thinking? There’s a free lunch? The government is going to baby sit them? Don’t people know instinctively that when prices rise exponentially something is amiss?