Is foreclosure assistance going to wrong people? Instead of irresponsible borrowers, assist responsible buyers?

April 12th, 2009 | by admin |

Give a tax credit to responsible homeowners who are current or have no mortgage. The credit would go toward helping them buy a new house which would take foreclosures of the market. Also give a a credit to responsible non-homeowners buying their first house. These actions would take millions of homes off the market, preventing foreclosures while not helping irresponsible deadbeats.

Your solution has the appearance of rewarding people who are fiscally responsible. Politicians will never buy it.

Other articles you might like...

  1. 4 Responses to “Is foreclosure assistance going to wrong people? Instead of irresponsible borrowers, assist responsible buyers?”

  2. By ranger_co_1_75 on Apr 12, 2009 | Reply

    Your solution has the appearance of rewarding people who are fiscally responsible. Politicians will never buy it.
    References :

  3. By infinite crisis 247 on Apr 12, 2009 | Reply

    theoretically your plan would work. the issue is how do you quantify who is a "irresponsible deadbeat" and who simply had bad circumstances happen? you truly can't without examining their whole situation top to bottom, which takes time. most of the foreclosed are not deadbeats, those are just the ones that people see on TV and point the finger at. there are a lot of people to blame for this mess, and it's not just the homeowners.
    References :

  4. By estielmo on Apr 12, 2009 | Reply

    Who will/can define "responsible?"

    Perhaps everyone who wishes should have to re-apply for their mortgage under the guidelines of pre-Community Reinvestment Act days?

    Should there be an education campaign that home ownership isn't for everone?

    Should sub-prime loans be prohibited? Should interest-only loans be prohibited? Should balloon notes be prohibited?
    References :

  5. By Stimey on Apr 12, 2009 | Reply

    I was sitting in a Panera coffee shop when I overheard a conversation at the table next to me. A lender was trying to convince a young lady to purchase a particular home. I heard her say that she couldn't possibly afford it. The lender leaned over the table a said in a firm tone of voice "Yes you can! And don't ever let anyone tell you that you can't". Then he proceeded to give her examples of people in her situation who also though that they couldn't afford a home. He also told her that the game is fair now so everyone has an equal shot at home ownership. As a minority that statement probably resonated with her. He made it clear that now is the time to buy and she will regret it if she lets this opportunity get away. Anyway he did a very impressive job of convincing this lady that she could afford a new home. He was a smooth talker and appeared to be much more polished and refined than she was. He proceeded to explain how he could get her a low monthly payment (probably temporarily). They were still there when I left but I'm sure that he had her convinced that she really could afford a new home, even if she didn't think so at first. I really wanted to jump into their conversation. I have mixed emotions about helping people like her but I know that the lender was being less than honest and knew she couldn't really afford a new house. His real concern was closing the sale – regardless of her ability to repay. My point is that everyone is quick to blame the irresponsible buyer but they should also give lenders and the government thier share of the blame. It really does take two to tango. I would say that forclosure assistance will go to both responsible and irresponsible buyers, not one or the other.
    References :

Post a Comment