msgbartop
California Short Sales, Foreclosures, REOs Los Angeles, San Diego, Riverside & Orange County Short-Sales Listings
msgbarbottom

30 Nov 08 Home Foreclosures Hindering California Economy

PayCheckToday.com - Apply Now! - get up to $1000

In addition to the US Treasury Secretary’s policy reversals and changing rationales on how to stabilize the financial system, we now have further proof that Henry Paulson has no idea what he is doing. His statement yesterday that ‘Nothing is more important to getting through this housing correction than the availability of affordable home loan financing,’ is simply wrong. The problem is not that people can’t buy homes the problem is we can’t keep people in their homes. In other words, ‘It’s the foreclosures, stupid.’ Watch this video with California Governor Promoting Foreclosure Prevention Methods >

The colossal and continuing wave of home foreclosures caused the disintegration of numerous banks and financial institutions, destabilized the housing market, and have resulted in national and global financial chaos. In August of this year, California experienced 101,000 foreclosure filings, which equated to about one filing every thirty seconds. At the same time, our nation experienced about one foreclosure filing every ten seconds. Home loan defaults, short sales and all its consequences are causing the credit and liquidity crisis, not the other way around. Until we solve the foreclosure problem, we will continue to have credit and liquidity issues.

AIG, Citigroup, and numerous other financial institutions are collapsing because of defaults and loan modifications. Yet the Treasury Secretary continues to believe that a top-down approach where we continue to throw money at Wall Street will somehow solve the problem. Using hundreds of billions of dollars of taxpayer money to buy distressed mortgage securities from Wall Street firms does nothing to help distressed homeowners stay in their homes. None of the Treasury Secretary’s approaches are targeted at preventing foreclosures. That is a massive and unforgivable strategic and tactical error.

It is time to listen to FDIC Chair Sheila Bair, who since last year has repeatedly identified home foreclosures as the root cause of the economic crisis. Her foreclosure prevention policies of forcing Wall Street to accomplish home loan modifications to keep people in their homes is one of the few sensible solutions that will help our economic recovery begin.



Reader's Comments

  1. |

    Just wanted to say HI. I found your blog a few days ago on Technorati and have been reading it over the past few days. Keep you focus on short sales data and foreclosure prevention advice. California homeowners need an informative financial blog like your during this foreclosure crisis.

  2. |

    [...] Home equity values shrink with the recent sliding home sales data. unknown wrote an interesting post today on Home Foreclosures Hindering California Economy | California Short …Here’s a quick excerptHome Foreclosures Hindering California Economy · San Diego Real Estate Market Update · Home Sales and Short Sales Volumes Increase in California · Home Loan Defaults & Foreclosures Rise for Prime Rate Borrowers · FDIC Regulators Close … [...]

  3. |

    [...] unknown wrote an interesting post today onHome Foreclosures Hindering California Economy | California Short …Here’s a quick excerptIn August of this year, California experienced 101000 foreclosure filings, which equated to about one filing every thirty seconds. At the same time, our nation experienced about one foreclosure filing every ten seconds. Home loan … [...]

  4. |

    [...] unknown wrote an interesting post today onHome Foreclosures Hindering California Economy | California Short …Here’s a quick excerptHome Foreclosures Hindering California Economy · San Diego Real Estate Market Update · Home Sales and Short Sales Volumes Increase in California · Home Loan Defaults & Foreclosures Rise for Prime Rate Borrowers · FDIC Regulators Close … [...]

  5. |

    [...] Source: Home Foreclosures and Short Sales Continue to Hinder California Economy | California mortgage refinancing has become difficult and second mortgages have disappeared as lenders aren’t willing to take on the risk. [...]

  6. |

    [...] unknown wrote an interesting post today onHome Foreclosures Hindering California Economy | California Short …Here’s a quick excerpt – Home Foreclosures Hindering California Economy · San Diego Real Estate Market Update · Home Sales and Short Sales Volumes Increase in California · Home Loan Defaults & Foreclosures Increase for Good Credit Borrowers · FDIC Regulators Close to providing new loan modification programs [...]



Leave a Comment