Quoting "David B. Shemano" <[EMAIL PROTECTED]>:
Fred writes:
> Seems awfully unfair to the working class young couple who have been
> renting, saving money for a downpayment, and waiting for the bubble
> to burst so they can afford to buy a house. Why benefit the
> speculators who put no money down and took out adjustable mortgages
> in the hope they could flip before the market ran out of greater
> fools?
David, thanks for your comment. The speculators would of course be
excluded from the moratorium, as they are in all the other
anti-foreclosure proposals.
But that should be specified.
Your qualification does not address the consequence of your proposal
for the couple that chose to act responsibly.
David
David, you have a good point. But I still think that families should
not be kicked out of their houses, just because they believed the
realtors hype, that housing prices would continue to rise, and they
could always refinance. Plus they probably got ripped off in the
process with hidden fees, etc.
House prices would continue to fall, even with a moratorium, because
there is a huge excess supply of houses. But you are right that they
would fall less than they would have without a moratorium.
Maybe Deans own-to-rent proposal would be better, because the
current homeowners would not benefit as much (they would no longer own
the house), and house prices would probably fall more. Deans proposal
would also be capped at the median house price in a metropolitan area.
Or perhaps the moratorium could be a temporary step until the
own-to-rent plan could be set up.
And the long-run solution would be more decent affordable housing for all.
Fred
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