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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (103931)	11/6/2011 1:10:42 PM
From: tejek	Respond to of 149317

What do you think? I would prefer to see a big surge in inflation to raise home values, but that doesn't seem to be in the cards. You could 'foreclose and bulldoze', that would artificially limit supply. That won't come until later in the housing recovery......probably in 2-3 years. It's interesting that they posit that lowering the principle can be cheaper for the mortgage holder than foreclosure. If that's the case it makes a whole lot of sense. I guess it depends on the market. In metros where the median is around $200K that makes sense but in CA where the median is plus $500K and a lot of principle forebearance would be required, I am not sure it applies. I think it's past time to do what we think is morally right, and time to just do what works. For the first time, I am motivated by the morality of it. People were snookered into these loans by the banks. They may never have another opportunity to own a house. I say let them keep their house by lowering the principle to a level that they can afford. I understand its a giveaway but it won't make things any worse than they already are.