McCain's Housing Plan

I have been a staunch supporter of Obama until now.  The homeowner plan is a smart plan and Obama is losing me by shunning it solely because McCain is offering the plan.  let's be real here.  It is a DEMOCRATIC plan.  Hillary Clinton proposed something similar and Dennis Kucinich has been beating his drum about it.  News people, please investigate it and report on a non-partisan basis.  I STRONGLY believe is the only viable solution available to the US.  

If people have little expendable cash they slow down buying products or services which is where we are now.  If products and services aren't bought, the companies that make them go out of business.  If the companies that make products and offer services go out of business they lay off their employees.  If they lay off their employees, the employees have no money.  And it goes around and around again until we are depressed.  The way we got out of it the first time was to create an enormous government social program called the military buildup of WWII. 

By forgiving borrower debt for those that can't pay it, it stops the foreclosures which stops the decline in home values which helps every homeowner.   It may cost each American $3,000 in taxes, but it will save $10,000 or more (perhaps the entire value of each house) in equity and will allow people to spend money on products and services, reigniting the economy.  Perhaps a shared responsibility plan with lenders would work.   Have lenders take 70% of the loss and have the government make up the rest, for example. 

The current bailout will not help because freeing up credit only ALLOWS companies to lend money.  If a company makes widgets but no one knows if anyone is going to buy widgets, then why would a company lend them any money?  Some companies are pulling any predictions of profit and loss right now because they have no idea what is going to happen.  Also, freeing up credit will not help mortgage lenders either.  With houses declining at record paces - why would anyone want to lend to a new home buyer?  The collateral could very well be worthless in a short period of time. 

Please be straight about this issue.  It is too important! 

I would be happy to talk about this solution in more detail. 

Thank you,

 

Brian Ward

A Real Estate Professional