http://ochousingnews.com/news/foreclosure-prevention-laws-extend-the-slump-experts-agree
Foreclosure prevention laws extend the slump, experts agree
By golfplan18 Follow Mon, 2 Jul 2012, 6:55am 687 views 9 comments
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I do think foreclosure laws tend to drag the process out, but at the same time some of these are there to protect the buyer.
Strong property rights is what this nation was founded upon. It would be terrible if government, some individual or corporation could simply take your property away. We'd be a third world nation if we allowed that.
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Oil Can's website
FortWayne says
I'm no fan of the banks, however if you can't pay your mortgage then your can't live in the house.
And we got rid of strong property rights when the Supreme Court it was OK of a local government to eminent domain your house and sell it Walmart for "redevelopment and tax revenue purposes".
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Here's a thought: Respect the property rights of renters and stop taking their wages to rig the real estate market against them.
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Oil can, we got rid of strong property rights when we introduced Fannie, Freddie and the FHA, as well as the mortgage interest deduction and exemptions from taxes on capital gains from home sales.
These policies transfer wealth (or the value of productivity) from the working class to the ownership society. This echoes feudal practices, making peasants of even highly compensated workers if they do not find a way into the aristocracy.
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The author of the article misstated the political divide on the foreclosure crisis.
GW bush and McCain both supported helping homeowners who couldn't pay up. McCain flip-flopped to reach that point, but late in the campaign he called for government to buy up mortgages and write them down.
The republican party wants americans to identify with the ownership society. Homeowners vote far more conservatively than renters. Republicans now oppose foreclosure mitigation, because they are the opposition. In command of the white house and one house of congress, they'd look out for homeowners' assets at the expense of workers' wages every day of the week.
Also, the point about eliminating government-backed mortgages leading to low ownership rates is nonsense. We had close to 50 percent owner-occupied housing before government stoked the 30-year mortgage. People would still be able to buy, but they'd be more likely to do it in their late 30s and onward.
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Molly,
Do you read what you write? According to you, we had close to 50% homeownership before the government backed mortgages. We're currently at 64% homeownership and have been over 60% for the longest time. Therefore elimitating government backed mortgages will likely reduce homeownership rates. I guess we have to eliminate it to find out.
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You appear to be the one with the literacy problem. Do you not know the difference between "low'' and "lower''?
I did not say we would maintain our current level of owner-occupied housing. The story claimed we'd essentially become a nation of renters, and I said the elimination of government-backed 30-year loans would not lead to a "low'' homeownership rate. 50 percent is not a low rate.
While I'm at it, let's add that the government created Fannie and the FHA about a decade before the country's productivity really boomed post-WW II. It is entirely possible that the prosperity of that era would have allowed people to save sufficiently to buy houses with bigger down payments and, as a result, shorter mortgages, which were the norm before the 1930s.
We can only speculate, of course. But OC Housing's prediction is also a theory, and one with limited grounding in history.
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You know better than that E-man. For every seller there has to be a buyer.
If we got rid of 30 year loans housing would simply adjust in the price... price isn't fixed, only fixed costs are construction and that's very cheap. Most of the price is usually what one is willing to pay.
I like the idea of doing away with 30 year loans, would save taxpayers money and would reduce the debt slavery that has taken hold of America over past 30 or so years and so far has been a complete disaster.