Randy_H

Mortgages and Lending In The Subprime Meltdown [Housing Tracker]

Home prices will stabilize -- closer to their true, intrinsic value, without any intervention at all. Why bend over backwards to support artificial, bubble prices? That simply rewards irresponsible or ignorant buyers and punishes prudent families who are priced out. "Stabilizing" prices at high levels only locks out prudent buyers who refused to buy something they couldn't afford in the first place.

Prices will stabilize after these homes are foreclosed and returned to the market and deserving families.

All the rest will be ineffectual for all but a few marginal folks because (a) many are upside down in their mortgages, (b) many were paying option-payment, variable mortgages often with teaser rates and relying upon appreciation to refi out of their situation, (c) many have little to no equity, thus no skin in the game, thus more likely to walk away if they are in a non recourse state.