Foreclosures help no one, right?
What should we do with all those homeowners who are struggling to make their mortgage payments? What about those who are facing foreclosure?
It’s a sensitive topic. Many of the people I talk to say that homeowners who took out bad mortgage loans and can’t make their monthly payments should face the consequences of their bad decisions. No one forced them into these bad loans, they say.
This is true. And we do live in a society where people are supposed to be held accountable for their decisions, even the bad ones.
But I ask you: Does anyone think it’s good for our country or our economy to have millions of homes fall into foreclosure? No one benefits from a foreclosure, not homeowners, banks or mortgage lenders. That being said, isn’t it prudent for us to get over our anger at having to bail people out of their bad decisions and take concrete steps to prevent another mortgage crisis in the future?
Yes, I know many homeowners have only themselves to blame for their mortgage problems. I know that many were greedy, and took out loans with artificially low short-term interest rates just to get into a bigger, more expensive home. But still … doesn’t helping people hold on to their homes, even if we feel that they deserve their comeuppance, help our economy?
I don’t know exactly what we as a country can do to keep people from losing their homes to foreclosure. But I think it is in the government’s best interests to provide more regulation of the mortgage-lending industry. That may be the only way to stop another full-blown mortgage crisis from hitting the housing industry.
Tags: adjustable-rate-mortgage, foreclosure, government-regulation, interest-ratesRelated Stories
POSTED IN: Buying a Property, Educational Tools, Foreclosed Properties, Insights and Commentaries
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