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Bad idea, Obama. Foreclosure rates are fairly lowly. 1-2% of all mortgages.
This problem is with Mortgage backed securities and their faulty instruments. The vast quantity of these subprime mortgages is not good, either...but Obama and EVEN McCain really needs to understand this clearly and address that problem’”””

Perhaps your figures are accurate, but I think the %% is higher. Tom Tancredo of Colorado says there are 30,000 foreclosures in his district alone, most of them ILLEGAL INTRUDERS. More copy-cat versions of the Fresno, Kalif illegal intruder strawberry picker who was allowed to buy a $500,000 house in Fresno.

There is another group of shoes that are going to drop in all this mess, IMO.

1.) With the number of foreclosures followed by the bank mergers, the paperwork about paying the property taxes on these foreclosures is all balled up.
I predict that the taxes will be paid late, if not VERY late, thereby interrupting the flow of money into counties nationwide.

2.) If someone doesn’t put at least 20% down on a house, I am under the impression that Mortgage Insurance must be purchased to cover the bank if you default. If that insurance is in place——which has never been discussed in the sub-prime postings here—— then the insurers are on the hook for millions of defaulted mortgages. Who is the major insurer for such mortgages and when will they turtle and go belly up??? What other types of coverage will dry up in the same moment???

3.) The more sensible people who got into trouble with their lending practices and got over their heads did the right thing, and just moved out, leaving the properties in decent shape. BUT—alot of the people who were handed the “no income verified-no credit history-no money down-mortgages have damaged or destroyed the interiors of the houses. They have taken out every single fixture, plumbing and electrical. They have stolen the doors and the cabinets. They have busted up the drywall and stolen the carpeting. Water heaters and house heating systems also.

Think I am over-stating this? Think again. Rush had a caller last week who called about properties in Detroit that she can buy for $1000 that are sorely distressed and damaged.
The properties that are in default—some of them are barely worth the value of the framing, and the dirt. The quality of the persons who got these “you cannot discriminate against me” loans were savages, and they have shown their true colors. Even if the bank can find a buyer for these distressed buildings, the buyer will have a large job of re-hab, and they have an excellent case for getting the taxes reduced dramatically. That == less revenue for the counties and cities.

4.) If the taxes and INSURANCE are paid thru impounds, and the payments aren’t being made, this is a further drain on the bank’s available cash. I can see lots of policies lapsing with the insurance companies and another nail in the coffin of this whole mess.

Socialism doesn’t work— not even in the richest country in the world.
I am eagerly awaiting the perp-walk of Barney Frank, Chuckie Schumer, Chris Dodd, Charlie Rangel, Jessie Jackson, Nobama, Nancy Pelosi, Maxine Waters,Bill Clinton, Jimmah Carter, and James Johnson and Franklin Raines, Jamie Gorlick and all the others.

I can think of another list of problems this will lead to, and the loss of revenues for counties and states that have lots of entitlement programs are going to be hit very hard. No wonder Kalifornia is broke- they actually have been broke for a number of years, but they have been playing a live and daily version of “Weekend At Bernie’s” to keep the charade going.

Prisoners in the worst cells in the USA have a better moral code with their fellow prisoners than the Democrats have with the American people.