Right or Wrong……………………I believe that the overwhelming majority of these “poor, wronged homeowners” won’t pay for those homes if the mortgage holders left their payments where they were before they reset because the homes are now worth less. Most of them bought because they thought they were going to get rich from appreciation that would never end plus the added benefit of having a built in ATM to fund their compulsive spending. It was sheer lunacy to give many of these people a loan because they had credit histories that were fair to poor. If the federal or state governments keep pushing to develop new, creative loan programs, it’s only going to keep this mess going forever . If they just leave it alone and let it correct itself, eventually, there will be some stability with prices in the bubble markets. The county where I now live in South Carolina has the lowest foreclosure rate in the entire USA. We have a very good, growing economy and we did not have the crazy run-up in prices like the bubble markets and the median price is $170k. People selling their homes do not receive multiple offers over the listing price from frantic people bidding on their homes. There are many other places in the country just like this and if the politicians will stop playing to the press and the voters and keep their nose out of this, it WILL eventually correct itself on it’s own.
