Furthermore, by letting every property revert to the mean value and GET PURCHASED WITH NEW MONEY you will then get people buying homes, fixing homes up and spending more money. By binding an already strapped homeowner you do not get any reinvestment in the home, you get no economic benefit, and you will more then 50% of the time, see that same homeowner fall into default yet again.
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Very well said, SD Realtor!!!
The sooner we allow prices to fall to their true market value (no govt loans or guarantees, no suppressed interest rates, no “tax credits,” etc.), the sooner we can get on with rebuilding the economy.
As it stands, all the money the govt is throwing at the financial system, including trying to artificially prop up housing prices, is money that cannot be spent on the real economy.
