You are dead right. We need these reforms yesterday, although I see no reason not to allow a 10% down payment for those with credit scores over 750, but I’m soft on that. 20% works too.
All of this would lead to a later housing bottom and a slower housing recovery, but when it came it would be solid and sustainable.
If the government was serious about getting homes sold, they would lower the barriers to investors purchasing houses. There are a lot of investors out there who are chomping at the bit to buy if the government would sweeten the deal with lower taxes and fees.
Oh please, please, no.
I see no reason the government should treat investing in real estate any more preferentially than investing in gold, or oil futures, or stocks, or lottery tickets for that matter.