President Obama’s Mortgage Relief Plan
Like many others, earlier today I watched President Obama’s mortgage relief plan delivered from Mesa, Arizona. I applaud him for the plan he laid out, but my optimism is tempered by the extraordinary challenge ahead and a concern that it may not go far enough, fast enough to turn the housing crisis around.
Home ownership is an essential pillar in the overall strength of the economy, and I am particularly encouraged by his focus on responsible home owners whose mortgages are underwater because of a sinking housing market. According to Moody’s, 27% of mortgages are higher than the current value of their homes, and keeping those homeowners from “throwing in the keys” should be a top priority and focus. Ultimately, this crisis started with foreclosures, and will end with foreclosures.
I also am encouraged by two other aspects of his proposal. The holy trinity of the lender, home owner and government shouldering the massive burden of responsibility. And second, that President Obama is focused on absolutely not giving speculators and irresponsible investors an easy way out.
Pete Flint, CEO
Founder & CEO, TruliaGet social with us.
Legacy Comments
Pete, I am sorry but I do not share your feelings. There will be a lot of our money spent, translate to mean debt, and unfortunately it will not affect our housing problem.Correct that it will affect our housing problem, negatively. Pete, keep my email address and in two years tell me how much better this problem is. No Nation has ever solve a recession on borrowed money. The individuals who will repay this debt are our clients. Not the individuals who are getting the bailout. You are killing the goose that laid the golden egg and you want to have him for dinner. But before you have him for dinner starve him with a tax burden too big to sollow. I sure hope I am wrong.
Pete,
I generally agree with you, but I’m not so sure on one point. I think you’re buying into the rhetoric when you say that “President Obama is focused on absolutely not giving speculators and irresponsible investors an easy way out.” Yes he’s “focused” on it, but do you really think this plan is as airtight on not helping “irresponsible” people? True, it only applies to owner-occupied homes. But it doesn’t exclude someone who bought too much house from benefiting from the plan. There’s really no way to discriminate between someone who lived high on the hog and overextended himself versus someone who played by the rules and just got unlucky (or was duped by a sketchy lender). Unfortunately, some people will undeservedly be helped by this plan, but such is life.
My full thoughts on the housing bailout plan are here, in case you’re interested: http://activerain.com/blogsview/941624/My-thoughts-on-the-housing-bailout-plan