U.S. lawmakers' plans to aid troubled homeowners would likely help prevent many foreclosures but wouldn't stop the freefall in home prices or stabilize the economy, a congressional report said on Friday.
I really want to know how congress figured this out. It might not solve everything but I would think this is a step in the right direction.
Helping these people can really help the economy in a number of ways.
for example between this and gas prices a lot of people have cut down their spending...if you help this people out they can spend there money on other goods.
also the reason why home prices have fallen so much is because of the flood of foreclosed homes on the market.
by stopping more and more of these homes going into the market it should at least start to stablized things, of course prices in houses wont raise for some time because we had/have so many home on the market due to foreclosers. But once we those are off the market price should start raising. of course this wont happen if we keep getting more and more foreclosed homes going up for sale.
"Such actions could help reduce the number of foreclosures... (but) would significantly shift the risk involved in mortgage losses from the current lenders and investors to taxpayers," said a report from the Congressional Budget Office, which gives nonpartisan research advise to lawmakers.
yes it will be are tax dollars going to help these people out but I am not sure i would count this as a risk...at least not the same type as risk lenders and investors faced.
but on the other we could be facing a greater risk if we allow this to go on.
more foreclosers will bring down the value of are homes more and more (if you live in a high forecloser area) and it will keep are economy headed down the drain.
sigh
who the heck came up with these findings, anyways?
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