I don’t dispute the foreclosure numbers. I just dispute that all of those foreclosures will happen to families. When you had “investors” buying multiple houses at 100% financing (how many did the Montecastros buy? 50? 100?) it’s obvious that each foreclosure isn’t going to result in one family on the street.
More likely, the ratio will be something like one family displaced for every 5 foreclosures. Do these families deserve assistance from the federal government? If they financed at 100% and aren’t losing any equity and simply have to go back to renting … is that something the federal government should be concerned with?
It certainly creates a perverse incentive. Under your plan people would have an incentive to buy homes they can’t afford because they know the federal government will be around to bail them out. I don’t want to live in that world.
