joethelender

Proposed Homeowner Bailout Plans are Loaded With Problems

While all of these ideas are interesting, there is no way you can have a blanket policy for the country to bail out homeowners. The banks are not at fault for the foreclosures, the economy is. Income has been going down in comparison to cost of housing. Now that the bubble has burst the government should have created by now an emergency insurance fund, like FEMA to help people that qualify. Maybe now is the time to start. Texas has not been hard hit by this crisis, and several other places that have sound lending practices. Not paying your house payment because the value has gone down is a bad idea, giving it back to the real owner (the bank) is. The banks going to auction it off or sell it on the open market to the highest approved bidder. The person that chooses to hurt their credit is not going to get a good home loan. This idea of letting people buyback their own home after they walked away from the loan is not going to happen unless they pay cash. Everyone would jump on that bandwagon and make the problem 100 times worse. Lets come up with some more ideas that make sense.