Posted on 04/12/2010 3:21:55 AM PDT by Scanian
President Obama's latest bid to "boost" the housing market does nothing except prolong the pain -- and put taxpayers on the line for billions more in inevitable losses.
Sooner or later, market forces will have their way; housing will find a bottom and finally start to heal. Using taxpayer money to delay foreclosure has already proved both frighteningly expensive and a repeated failure -- but the administration is still at it.
Obama's first "rescue" effort sought to pay delinquent homeowners and their banks to modify defaulted loans -- an attempt to stop foreclosures and keep a lid on inventories. When modifications were blocked by second-mortgage holders, he tried paying them to go along. To stimulate sales, he offered $8,000 apiece to lower-income first-time homebuyers. Finally, he offered to pay qualified borrowers and their banks to conduct "short sales" -- sales in which the bank agreed to take less than it was owed.
(Excerpt) Read more at nypost.com ...
Sooner or later, market forces will have their way; housing will find a bottom and finally start to heal.
So... My question to FR is this: How far do you, personally, think housing prices will go.
And to make it easy I am asking in General year prices. Such as in my own case. I bought a home in Central Florida in 1991 for $75K. I sold it in 2009 for $90K after having been appraised for $225K in 2008.
I figure my Average Year Cost, AYC, for my former home is 1998.
The price of housing will continue to fall until the average family can afford the average house, just common sense. and people without jobs cannot afford to buy houses so there is really no bottom to the housing market that i can foresee.
Yeah, I can see that happening. Especially with a major glut on unoccupied housing that we have right now.
The banks are not dummies, at least once you leave the branches and walk in the upper floor of headquarters.
They have gone over the list of delinquents and determined possible workouts. When a workout is possible, it is certainly done. The fact is all can’t be worked out. The debtors are simply not solvent.
Using all the taxpayer money at some point the money runs out socialism always fails.
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