One of the current presidential candidates has called for a ninety day moratorium on home foreclosures across America.
He bases this on his idea that we need to stop the bleeding of home owners and sow the record numbers of foreclosures that are happening across the nation.
In short he wants the government to use its power over private banks to stop foreclosures until the banking mess sorts itself out.
While emotionally it may sound like the right thing to do many economists and top financial experts think it is a very poor plan of attack. Many of these experts fear that people will not pay their mortgages over that 90 day period making the situation much worse and will lead to more defaults.
If the defaults on homes across the country increase, the tax payers will feel the pain because the government through its recent bailout program has invested in many of these banks that hold volatile mortgages. They basically invested tax payer dollars and an increase in foreclosures would diminish any return on that investment.
In reality the real problem was loan programs that allowed people to own homes who should have been renters. Crazy programs that allowed people to "state" their income with out proving it are just one of the many lending programs that got us into this mess.
Now letting these people get a break for a short period of time will just pro long the inevitable and drag the housing crisis out longer making it harder for everyone else that does pay their mortgage and can afford their home.
If you are unable to refinance your loan due to bad credit you need to check out http://www.diycredithelper.com today and learn how you can repair and increase your credit score.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites