[quote=SD Realtor]FLU solved the problem in his very first line…
“How about just giving even more cheap credit to well qualified borrowers? We’ll clean up this mess by buying…”
Plain and simple.
If there were no loan mods, and all of the foreclosures could have happened in a normal manner, and cheap credit would have been available to those who were REALLY QUALIFIED then we would:
— Have a much healthier market.
— Seen all that distressed inventory get absorbed
— Let the housing market operate more freely.
— Rewarded those who have saved money and been prudent with fantastic real estate opportunities.
— Formed a much more solid foundation for the entire housing market.
This would have been a back to the basics policy where owning a home was not considered an entitlement but rather a reward that was earned.[/quote]
Awesome post. What has been done by the Government intervention is an absolute disgrace forcing all the loan mods and letting people sit in their houses for 3 years not paying. As you say we should have never stopped the foreclosures in 2008 and we would have flushed it all out and the properties would have went to those that deserved them vs. rewarding the people who don’t pay their bills. These policies made me disgusted with our Government. Now they want to enact eminent domain and allow cities to force mortgage lenders to write down principles see this NYT article about San Berardino (http://www.bubbleinfo.com/2012/06/24/shillers-eminent-domain/). Time to get scared! Is this Cuba in 1959? Stalinist Russia? China under Mao??
