Mortgage Crisis: What Should Government Do?
November 2nd, 2007The Las Vegas Sun opinion writers harshly criticized Nevada’s governor today for not doing enough to help homeowners and real estate speculators who are not able to keep up with the payments on their real estate loans. Plus, he’s a Republican.
The Sun correctly notes that Nevada’s government has:
- rolled out a Web site that compiles all known government help on foreclosures
- planned housing fairs to try to match borrowers with nonprofit agencies
- proposed that private lenders help get people out of subprime loans
- and scheduled summit meetings to brainstorm some more solutions
but apparently it’s not enough to only rank third amongst 50 states in government response to the Sun’s “crisis.” It specifically notes two states have done more:
The governor of Ohio convened a task force that came up with 27 recommendations. Officials there are using databases to find homeowners who might, whether they know it or not, be at risk of foreclosure and are reaching out to help them.
California has offered to help people who lost their homes in foreclosure to qualify for housing assistance and has added counseling services.
Well, let’s talk about these. The Ohio governor’s task force sounds pretty much like our governor’s summit meetings. And it is downright scary that Ohio bureaucrats are burning work hours combing citizen’s income and expense data in an effort to hunt down outliers, people who don’t fit the bureaucrats’ model of a proper mortgage owner. In any case, Nevada’s state government does not keep records of our citizens’ income and expense so that “big-brother” solution is not available here.
The California solution, meanwhile, seems like a government response designed only to trick citizens into thinking their government was helping. Wouldn’t someone just leaving home ownership be too wealthy to apply for government housing welfare? Perhaps not in California. Typically, people who go through foreclosure fail to pay their mortgage obligation for several months, and are able to save up those funds to acquire and move into new shelter, without any government welfare. Meanwhile, Nevada already has several credit counseling services: here’s one; here’s another; and another; and a whole bunch more; and here’s a page full of counseling services who service Nevada and are approved by the US Department of Justice.
November 3rd, 2007 at 9:07 am
Government should do absolutely nothing. The speculators that helped cause the problem deserve whatever they get. Some of those folks that took a chance on funny money mortgages will loose. That is the same as those that play the slots. Both gamble that they might win. Should government bail out the slot loosers also?
November 3rd, 2007 at 12:20 pm
I couldn’t agree with you more Jerry. People (speculators or homeowners who over-extended themselves) go themselves into this mess. Nobody put a gun to their head when they signed the loan paperwork and if they didn’t read the fine print, that is their problem.
This is all about personal responsibility and people being held accountable.
November 3rd, 2007 at 2:24 pm
No doubt… these morons who bought beyond their means - and enjoyed healthy profits throughout the boom are now crying the blues because they had no idea what they were doing. Boo frickin hoo.
They certainly weren’t offering up their profits to the government to “help out” when they were making all this dough.
I know it sounds cold and mean, but seriously - screw em. Perhaps the Las Vegas Sun would be willing to take some of its massive profits and subsidize some of these people’s house payments. Maybe a donation effort on their front page. Oh wait! The Sun has very little profit. I forgot, they are nearly gone as it is. Apparently their vast knowledge of business has not served them well either.
I do agree with the previous poster that if they lose money and are reimbursed, then I should be reimbursed by the government for my gaming losses. (LOL) Blaming the mortgage companies is truly retarded.
November 5th, 2007 at 4:44 pm
I am not blaming those that hoped the time was right when they bought their home. I am not willing to question their motive, but for the “Flippers” who got stuck on the last round.
My problem is with the staff and reporters of a newspaper, who see the government as the best way to address the problem.
To you I have one question: When was your last experience at the DMV so positive, that you would like to repeat it or wish it on a ?
No matter how bad the interface with your mortgage broker, it is infinitely better than with the government. Ever called a government and had the phone answered on the first ring??
One will still see you as a future client, while the government employee simply is interested in waiting you out for quitting time and the government pension.
There is a reason news paper circulation is falling, buying it is a bad investment.
November 9th, 2007 at 10:47 am
The “Las Vegas Sun?” Isn’t that the part of the RJ that you have to strip away to get to the sports section?
March 5th, 2008 at 9:29 am
There are two categories of people in this mess; speculators who got in the game on impulse of greed and common people who genuinely want to live the American dream but were deceived into a getting a loan they can’t afford to pay when interest reset or by virtue of economic eventualities, are facing foreclosure. It is my opinion that the government should reach out in some ways to the latter but not necessarily give them a “hand out”