Thursday, August 27, 2009
Foreclosures once again hit all time high
The American Dream! Home ownership. Unfortunately the American Dream-for many families- is becoming a nightmare.
According to Reuters:" U.S. home loans failed at a record pace in July despite ongoing federal and state programs to avoid foreclosures, which have severely strained housing and the economy."
Record numbers of home foreclosures? What happened to the billions, and billions, that Congress appropriated and then borrowed from China to help people and lenders renegotiate home loans?
We were told by the Obama administration that we had to do something, apparently anything, to stop the foreclosure crisis. However here we are-eight months into the Obama administrations first year and according to Reuters-not only are foreclosures at all time highs-up 7 percent for July-but upwards to 32 percent from the same time last year.
Well I guess the Bushulus, the Porkulus, and all the other pork barrel spending boondoggles of the last several months have been a waste of time. People bought homes in many cases that they couldn't afford, others have been slammed by the recession and are now fighting for their lives.
Americans were told that help was on the way. Seems help got lost somewhere along the way along with billions and billions of dollars.
This may sound harsh but it comes from someone who barely managed to escape foreclosure just as the first mortgage meltdown occurred. In fact if I had waited just a couple of months before catching up my payments I would have been eligible for a "loan"modification. (See yesterdays story)
This may sound harsh, but I think if the government had stayed out of all this downturn stuff, and allowed the free market to work, we would already be out of the crisis. Government cannot solve our problems. In fact as Ronald Reagan said "Government is the problem".
Things would have been pain full. But in the long run, I think we would have got back on track sooner. As it sit stands now we have so mortgaged -our own as well as - our children's future so much that the next foreclosure sale may well be America itself.