“Those people signed an agreement and should he held to it!”
Thats kinda up to the bank isn’t it.
“Most of them didn’t put down anywhere close to 20% and shouldn’t have been allowed to purchase in the first place”
Oh so you’re the king of the world now. Again, thats up to the bank. If the bank chose to make a business decision they should be accountable for that decision, gather the risk as well as the reward. Unless you or I are a stockholder than we have no say.
“Since they did agree to pay their mortgage and didn’t they should be thrown out in the street!”
yes you Majesty!!! again, thats up to the bank.
On the broader scale its MUCH better for society for people to stay in homes. Here in Florida the foreclosure rate is very high. Some neighborhoods have 10% of the homes in one stage of foreclosure. Thats 10% of the homes that are not being cared for, tall grass, stagnant swimming pools. Oh yeah they are also crime magnets.
What would you do with the millions of homeless families that would otherwise be out on the street? Would you laugh at them and throw stuff at them?
“Most of them didn’t put down anywhere close to 20% and shouldn’t have been allowed to purchase in the first place”
Oh so you’re the king of the world now. Again, thats up to the bank. If the bank chose to make a business decision they should be accountable for that decision, gather the risk as well as the reward. Unless you or I are a stockholder than we have no say.
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Just as an aside and not taking sides - millions of homeowners paid 5% or less down for decades and the majority never a problem with defaults on their loans.
IIRC, the advice since the 50s for first time buyers with the necessary income was to put as little money down as possible unless you planned on retiring and dying in the place.
Today, people cannot unload their homes because the banks now require 20% down. And on the other side, people with the income to buy cannot come up with 20% cash down.
So home sellers and buyers are at a stand still for at least the next 2 or 3 years until the feds ease up the down payment requirements. And people needing to move because of a job cannot, or have to leave a house empty.
Take a look at this map.
http://money.cnn.com/news/storysupplement/economy/gapmap/index.htm
Easy to see how states compare on unemployment rates and foreclosures. A state like Oregon has low foreclosures but high unemployment. Check out Nebraska for a healthy (think farm commodities) state