Foreclosure Crisis - should the government keep their hands off
AIR DATE: October 26, 2011
Last week in the Republican debate in Nevada, Mitt Romney and other candidates said the government should back off and allow the housing market to correct itself. Federal programs to help distressed homeowners have largely fallen short in Nevada. Should the government be involved at all? What would a coherent federal program to help underwater homeowners look like?
GUESTS Ken LoBene, Dir of the NV Field Office, HUD Joanne Levy, Las Vegas realtor Ian Mylchreest, producer, State of Nevada
If you were a house "flipper" speculator or you took money out of a refinance, then I'd agree you're out of luck and on your own. But if you never took money out, bought before the peak, it's your only residence and your only "crime" is being unemployed, I think there should be some kind of assistance.
The idea of a 1 year hold on payments sounds reasonable - the homeowner would have to eventually pay back all principal and interest with only modest penalties.aunty palin –Oct 24, 2011 09:43:35 AM
Some private mortgage companys will refinance down the principal with a promiise of shared profit from any future salekerry stutz –Oct 24, 2011 09:34:51 AM
The biggest problem with any current program and any future program is that it does not take on adjusting the value of the home to a fair market value. The banks have no interest in taking on that lost. They would prefer people leave their homes so investors can make a quick buck on their homes and rent their homes to even more desperate people. Nevertheless, if the gov't stepping off his issue will only help investors -the same people that were responssible for a big part of ou current economic mess- That might be good for Romney's bankin friends, but t for regular peopleEdwin –Oct 24, 2011 09:30:58 AM