Reducing foreclosures is more difficult than it seems
-->Politics, Credit Crunch, Credit, Bailout News, California Housing Crash, The Economy, Florida Housing Crash, Real Estate February 11th, 2009
No Mr. President. You can’t just throw money at it. Preventing and reducing foreclosures is a very difficult problem to fix. Letting the free market correct itself seems to be the best option.
The Wall Street Journal had a good piece that talks about this:
The Obama administration provided few details about its plans to address the foreclosure crisis when laying out its economic-recovery program Tuesday, highlighting the challenges of creating a program that is fair and effective.
The administration’s efforts are being complicated by a weakening economy. Nearly five million families could lose their homes between 2009 and 2011, according to Moody’s Economy.com. “The ground is shifting,” said Tom Deutsch, deputy executive director of the American Securitization Forum, an industry group. “We have a lot more job loss and a lot more pessimistic expectations on home prices.”
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