04 Jun 08 
Who’s Got More Game, Plan
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Now that we finally have the presidential candidate situation figured out, which in your opinion Senator McCain or Senator Obama has the more effective/beneficial plan for our current real estate market?
These are the current plans from each candidate for fixing the current mortgage crisis.
Senator Barack Obama is asking for a $10 billion foreclosure prevention fund that will help victims of mortgage fraud sell their home or modify their current mortgage. The Federal Housing Administration program encourages lenders to buy or refinance existing mortgages, and to convert them into stable 30-year fixed mortgages. The program would require the borrowers to share the equity of the home with the FHA when they sell or refinance.
Senator John McCain has proposed the “HOME Plan”. In this proposal, if a borrower sells his/her home for a gain, then the lender and the federal government each would receive a portion of the equity earned. McCain wants lenders to do for borrowers what the lenders are asking the government to do for them in terms of help. McCain has also asked for the creation of a Department of Justice task force to investigate mortgage crimes involving lending and securitizing home loans.
So in your opinion which candidate has the more beneficial plan? Which candidate do you think will most positively impact the current real estate market?
Tags: crisis, equity, help, housing, loans, McCain, mortgage, Obama, plan, Real Estate
Reader's Comments
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I think the best plan is NO plan. The sooner this plays out and home prices better reflect wages the better off everybody will be.
I agree, however I think that a plan is necessary seeing that we are in a crunch. I read the other day that foreclosures are up almost 300% from last year.
While I feel for people who were lied to by mortgage brokers and bad agents, the majority of these foreclosures are from people who got in over their head. By either buying “too much house” or cash out refinances, and HELOCs. The majority of that money went to live above their means. Meanwhile the patient and prudent savers have been waiting for this correction to play out. Let’s let it play out. At the end of the day what’s wrong with renting? Especially when your monthly obligation could be cut in half.
You are right, we shouldn’t be punished for the people getting in over their heads. Nor should it be our responsibility to fix what these people did. But at the end of the day the fact remains that it did happen and we are all suffering because of it. So IMO it will be up to us to fix the problems that were created. I wish it weren’t so but I don’t see another way, do you?
Well….this is a very interesting discussion. What do you suggest be done by our government to fix this? We are already helping the banks out big time, I think the banks should take the Fed’s suggestion and let people have principal reductions on their mortgages, this would help inventory since less foreclosures would hit the market, but for us to infuse tax dollars into this mess is foolish. Anything that props up the the false values of homes are foolish. We need to learn from Japan’s mistakes and let the markets take care of themselves.