Foreclosure Crisis
I don’t enjoy speaking on the topics of politics and the point of this blog is not to either promote or criticize any particular party. But this is the election season and the Republicans are the only ones campaigning. Therefore, the absence of ideas and solutions on one of the largest problems looming over this economy is stunning. You would think that one of the main topics of discussion among the upcoming GOP hopefuls would be the foreclosure crisis its quite the contrary. In recent debates and discussions, the foreclosure crisis is something that many hopefuls have been shying away from and that is very disconcerting. It’s caused quite an uproar amongst journalists around the country and created quite a heated stir in the political arena.
Foreclosure Crisis | No Solutions
Across the country millions of homeowners have lost their homes because of delinquent mortgage payments that resulted in foreclosures. However politicians like Former Utah Gov. Jon Huntsman and Mitt Romney don’t really have any solid solutions for the foreclosure crisis that is currently crippling our economy.
Former Utah Gov. Jon Huntsman uttered the word when describing the impact the sluggish economy is having on many Americans. But no solution was attached to the mention.
Former Massachusetts Gov. Mitt Romney, considered the front runner – mainly because of a lack of a consistent rival – has said the “cure for foreclosures is for the government to get out of the way and let the process run its course,” according to the New York Times in an editorial published yesterday.
Mitt Romney’s solution of just letting the process run its course has caused an uproar with the New York Times. The Times then unleashed on Romney for proposing that the housing market be left alone to bottom-out on prices, allowing investors and bargain-hunting homeowners to scoop up the remains. The Times called Romney’s plan “wrong on several counts.”
“With the economy still weak and vulnerable to shocks, more foreclosures and the resulting price declines would only weaken the economy further,” The Times editorial said.
http://ecreditdaily.com/2011/11/stunning-disregard-gop-hopefuls-foreclosure-crisis/
This hands off approach that Romney offers is also mirrored in his 160 page economic plan where he mentions the foreclosure crisis once in the entire document.
Rick Perry offers a three step solution…but couldn’t remember what it all 3 points were.
Foreclosure Crisis | The Numbers and The Facts
Just how many people are affected by this foreclosure crisis? Well, 3 million people in the United States have already lost their homes since 2004 and the numbers continue to grow. Apparently there are another 4 million homeowners who are in risk of losing their homes and many of them already have mortgages to pay that are much higher than the true value of their homes and properties. Plus, when you consider that roughly 3 out of 10 homeowners owe more on their mortgages than their houses are worth, the housing market is in serious trouble. Again, why isn’t the Republican party offering any solutions to this problem?
Foreclosure Crisis | Failed Government Plans
If you’re in the real estate market then I’m sure that you’ve been following failed plans by the Obama administration to curb the foreclosure crisis: HAMP, Dodd-Frank, and TARP. The problem with HAMP in particular is that it won’t be around long enough to help those that it sought out to assist.
In the most recent quarterly report to Congress, the Office of the Special Inspector General for the Troubled Asset Relief Program (TARP), said the administration’s Home Affordable Modification Program (HAMP) will likely fail in assisting the initially targeted 3 to 4 million troubled homeowners. TARP is the bailout program that funds the foreclosure prevention effort.
“If the current rate continues, 520,000 to 600,000 homeowners who are eligible for HAMP will not get a permanent modification before HAMP expires,” according to the report to Congress.
http://ecreditdaily.com/2011/11/stunning-disregard-gop-hopefuls-foreclosure-crisis/
Foreclosure Crisis | Conclusion
One would assume that one of the primary objectives of the GOP hopefuls would be to provide a solid solution for the foreclosure crisis. Of course, the government’s alternatives thus far have been financial disasters designed to transfer money to the banks. The solution to this problem can only come from problems solving entrepreneurs seeking to make money the American way: solving problems. If you’re interested in learning how to solve the housing crisis, then click here.
Image attribution: http://washingtonindependent.com/37/fraud-worsens-foreclosure-crisis
