Seattle….It has to be put into perspective for people. My analogy is that they simply gambled and lost. Accept it and walk away. They may even have tax consequences from their loss.
If you owe $600K on a house that is worth $500K today, you really aren’t losing anything anyway, except pride, ego, etc. There are always the drama queens/kings.
People will not be homeless. They will be able to rent.
There are millions of landlords and employers who view a person’s past differently, so it’s impossible to say that they won’t be able to find a rental or get a job. Most employers don’t look at credit reports.
A clean credit report with everything else current except the mortgage should be looked upon differently.
After a foreclosure, you just need to use credit responsibly and pay minimum payments on time to rebuild.
America needs to get past the “shame” of being a tenant.
The fact is that in So Cal, in many areas you can rent for about 50% of what is costs to own.
It’s not an entitlement to OWN a house, any more than it is to own a Rolls Royce.
Europe has had tenants for centuries.
The fact is, most landlords are getting a terrible return on the value of their asset today. (It may be a great return based on their investment, but that’s a diff story)
Tenants should be thankful for this house of cards.
As far as buying in the future, they need to only buy what and when they can afford it. There may be programs that will overlook the foreclosure. Worst case scenario is, it’s on a credit report for 7 years.
It’s not the end of the world, it’s not a terminal disease.
It was irresponsible of many people to buy a home. THEY NEED TO FACE THAT. A govt bailout will be a disgrace and slap in the face to the resonsible people who didn’t buy because they knew they couldn’t afford it.
It will also contribute to an inevitable larger bust from the facade and the related propaganda.
People need to feel some pain and learn from the experience.
