Housing Bubble Prices should NOT be "shored up".
The reason that these people cannot afford monthly mortgage payments is that they foolishly paid $400,000 for a house that's worth $200,000 and a Greater Fool did not show up to buy the house for $500,000 before the gimmick mortgage exploded in their face.
Now, Obama wants to make the U.S. taxpayer the Greater Fool.
How much is a house truly "worth".
As much as the buyer for that house can afford to pay in monthly payments for BOTH principal AND interest from Month One without resorting to artificial gimmicks and without going broke. Anything else is a Bubble Price and maintaining Bubble Prices with Government aid only enables financially irresponsible behavior and prices responsible buyers out of the housing market.
Market forces are based on what "the market can bear" and not what "the market pretends to bear with borrowed money that will never be repaid".
Having the U.S. taxpayer become the ultimate pigeon in this scam is a theft of the taxpayer and a con man's fix of the market.
Well said. We unfortunately moved to and bought a house in S. FL while the prices were skyrocketing. Our house I’m sure is worth less than we paid. However, we didn’t buy more than we could afford and so can continue making our mortgage payments. It’s too bad we can’t sell it for what we paid for it, but that’s how life works. We bought a house to live in.