Before I go further, I just want to make one thing clear.Â I am not a political person.Â I donâ€™t agree with either side of the aisle and I think a politicianâ€™s sole motivation is to get re-elected.Â Finally I think anyone thinking the government is going to bail them out is delusional.Â So please donâ€™t take this post as an endorsement for a candidate.
All that said, last week I finally heard a politician give a solution to the housing crisis that makes sense.Â Mitt Romney was in town last week peddling for votes when he was asked what he would do about the housing market and foreclosures.Â Here is his reply:
"One is, don't try and stop the foreclosure process. Let it run its course and hit the bottom. Allow investors to buy homes, put renters in them, fix the homes up. Let it turn around and come back up. The Obama Administration has slow-walked the foreclosure processes that have long existed, and as a result we still have a foreclosure overhang.Â Number two, the credit [that] was given to first time homebuyers was insufficient and inadequate to turn around the housing market. I think it was an ineffective idea. It was a little bit like the cash-for-clunkers program, throwing government money at something which was not market-oriented, did not staunch the decline in home values any more than it encouraged the auto industry to take off."
I could not agree more with his statements.Â It has been proven that the government programs created by Bush and Obama alike do nothing except provide false hope to homeowners who should be focusing less on how they are going to keep their home and more on how they are going to move forward with their lives and be homeowners again in the near future.Â The fact is the government programs delay the inevitable and end up doing more harm than good.Â Further, very few Nevadans even qualify for these programs.
I recently spoke with a couple who were able to get a government loan mod and were excited at first.Â The problem was they still couldnâ€™t afford their home and a year later, after their savings was drained, they needed help.Â While the loan mod lowered the monthly payment, it did nothing to help the homeâ€™s negative equity.Â You canâ€™t tell me that that person would have been better off dumping their home a year ago.Â They would have kept their savings, had a year to rebuild their credit, and would be one year closer to having the ability to buy a new home at these historically low prices.
So whatâ€™s the moral of the story?Â Donâ€™t wait on the government to bail you out.Â Why not create your own bailout and use Nevadaâ€™s foreclosure laws to your advantage to force the banks to let you out of your home.Â When banks will pay you to complete a short sale, why not start over now as opposed to later?Â Contact me if you need more info.
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