This is a really stupid idea. The issue is that for a huge majority of people the problem is far more fundamental. People are struggling because they have lost jobs, their savings etc. and that isn’t going to get better anytime soon. It is foolish to assume that a 4% interest rate is going to solve anything..it is another one of the governments long line of stupid ideas that so far have been a monumental waste of taxpayer money.
The best thing is to accelerate the foreclosure process so that people who don’t have the capacity to continue holding expensive money pits will give them up and go back to a more affordable budget renting and others who have stronger capacity will buy these units.
Yes, some people will LOSE big time, but there are others who will GAIN. In the end it’s absolutely a zero sum game.
Given today’s weak economic fundamentals home prices need to be much much lower to restore confidence that what someone is going to buy is not going to financially ruin them…that is just the hard truth and there is no way around it except to somehow magically create a bubble-era economic environment.
The worst problem plaguing the USA today is the sense of entitlement. People who have accomplished nothing feel entitled to live a grandiose life with 3000sqft homes, 2 luxury cars, vacations etc. If one cannot afford to pay for their home then how or even WHY are they entitled to be in that home? Some of these morons are now even suing to stay, these type of frivolous lawsuits should be immediately dismissed as it delays the fall in prices (and the subsequent recovery) and keeps the Real estate market in a holding pattern.
Many of these losers bought their homes without the forethought of how they would make their payments if they lost their jobs and how long it would take to find another one. Many others were too indifferent and stupid to actually do due diligence to read their contracts. It’s absolutely amazing what Americans will just sign to get a new car or a new home..even if it means debt slavery, taking on an unsustainable amount of debt.
When taking on debt one needs to take the pessimistic scenario when evaluating capacity to repay… you should have at least 12 months reserves in my opinion before you indulge in the biggest purchase of your life. In reality many of these buffoons bought houses with little more than a few hundred dollars to their name..and now they expect to keep their home?
Sense of entitlement is astonishing and the governments chant that we should help such people is even more egregious!
