To solve the foreclosure crisis you need to get more jobs. The biggest reason for foreclosure now is people losing jobs. We need to have a major effort to encourage entrepreneurs. We may not see the factories we used to see, but successful entrepreneurs are intuitive enough that they can do the job without knowing where they are going. State and federal regulation are keeping them down; and lack of support, which is keeping them down. More than two million homes are going to be foreclosing this year, what a waste. Just because the owners will not pay the particular payment on that house, if we switched the people and the houses like mortgage musical chairs. Take Joe for example he cannot afford his $600,000 house, but he can pay the
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If people would stop trying to live above their means, then the foreclosure rates would be considerably smaller. Just because the bank says, you can buy a house but that does not mean you should buy it. Be reasonable do you want to be broke every month. Always save for times like these, if you make 50k a year there is no way you will be able to buy a 200k house. Use common sense. For the future, require all mortgages underwriting to qualify applicant based on the fully amortized rate of their mortgage, rather than the ultra-low teaser rate. If their higher payment exceeds 1/3 of their income, do not lend, or allow stated-income loans. Verify all sources of income using two prior-year 1040s and at least 6 months of pay stubs. The government needs to slow down the house supply and try to get the homes that are vacant fill up before they start building new homes. If you start building, new homes while there are homes not being use, taking up space, and making the taxpayers pay for the vacant homes maintenance.
Most people are going to want to buy the new homes, which are going to cost more. What is the point of building new homes when there are very few buyers? The government needs to follow one of their guidelines they made long time ago supply and demand. You do not build homes until they need them not just, because you want to build homes just because you have money and to want to be greedy. Depreciation schedules for these buyers must be lower to 5 to 7 years. A 0