Can the U.S. Government Stop The Foreclosure Crisis?

In a short answer…NO! The United States Government cannot stop the foreclosure crisis. The banks got greedy and now they have to pay…..but homeowners are paying with their one largest asset, the family home.

I do find it amazing that Republicans, who champion a free market ecoonomy, deregulation, and no government bailouts, just finished with a bailout of Bear Stearns. I believe it was a 30 billlion dollar bailout.

Too bad the government couldn’t use that money to assist the homeowners themselves. Now I’m no bleeding heart liberal. But it’s clear that the big mortgage banks and financial houses either knew or should have know they would be giving people mortgages that could not reasonably be paid back based on the rising interest rates of the adjustable rates.

Now lets be clear, the homeowners aren’t totally blameless. Every homeowner, myself included, has an obligation to actually read what they are signing when they sit at the closing table and sign the mortgage paperwork. And if you don’t understand what you’re signing, ask!! Better yet, pay an attorney a few hundred bucks to read over the paperwork a few days BEFORE closing. Sounds too logical I know.

The fact that the government can’t help the large number of homeowners in foreclosure is rather interesting. The government has tried three times now with allegedly homeowner friendly foreclosure assistance  only to find that the assistance isn’t quite working as they wanted.

So what becomes of the foreclosure crisis now?

It’s up to people who didn’t buy a home during the last 5 years to come in and buy a bargain home to jump start the economy. Of course, it won’t save us from going into a recession. We’re already there. But it will help the recession to be short lived and may just prevent further collapse of the United States and world economies.

More on all of this later.

If you’re selling a home, go to http://www.cantsellmyhome.com/index2.html