The founder of Habitat for Humanity has just passed away. The efforts of his organization have helped thousands of people, and decreased the financial burden (however small) on the government in helping people get affordable housing. From the other end of the spectrum, lawmakers are working on legislation to help the housing market and homeowners. The Democrats are looking for a quick fix, and the Republicans are looking for an indirect quick fix. The ugly truth is that many homeowners will still lose their homes. The article points out that in order to qualify for the Republican plan, homeowners need to be "creditworthy." If homeowners are delinquent with mortgage payments, doesn't that pretty much destroy their credit?
The job market and the housing market are tied together. Those that are losing their jobs are more likely to lose their homes. Without an improvement in the job market, how will the housing market benefit? A quick fix may just delay the inevitable.
More government control in the housing market makes me cringe. Government meddling with Fannie Mae and Freddie Mac, in the way of encouraging bad loans, largely contributed to this mess. Anyone that can just go print more money should not be entrusted to keep roofs over people's heads; let's leave that to the private sector. I wonder if Habitat for Humanity's participatory program helps future homeowners feel more "invested" in their homes. We value what we have to work for. Things that are given to us for nothing we place little value on (Earl Nightengale, The Strangest Secret). I don't have an answer to this dilemma, but I don't think the hard choices should be postponed for the seeking of political polish.
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So (in your opinion) will this mess have to get worse before it can better? And is there nothing to be done to help those families who are faced with losing their homes in addition to their jobs? Not a very exciting prospect!
ReplyDeleteSome families will have to rent a home instead of own right now. I am feeling the pinch; I am looking for work right now, and I rent. Yes, I realize I am a student, but even so, houses are beyond our budget currently.
ReplyDeleteI do think that having a family participate in the building of their own home, not only gives them a sense of pride, but gives them a huge discount, normally they will save 20% or more on the finished product. As far as a quick fix, so little of the stimulus is going either "quickly" or directly to the problem anyway. Most banks are holding onto the new "money" not lending it, and the majority of the money is going to special interest groups as a thanks for the election and I hope I can count on your vote next time as opposed to creating jobs, saving the economy, or helping people stay in their homes. I don't know what the hurry is to pass the bill if it is not designed to do much of what it suggests.
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