Well, there’s a least one person who won’t have to worry about his mortgage. Barack Obama goes to the White House, but what happens now to all his fellow Americans who are at the brink of being expelled from their homes?
If the truth be told, probably not a lot. Most experts agree that the real solution to the mortgage debacle is to allow bankruptcy judges to change the terms of a mortgage. But Congress will have to deal with this and the banking lobby is still very strong despite being fiscally weaker.
True, a president can try and bully things through Congress, but will Obama want to get into such a battle so early in his first term? My guess is, he won’t.
So, I think we will see a patchwork of different programs, most offered by the banks themselves, but none that will truly favor the home owner. Hope I am wrong, but something tells me I am not.
Stay tuned
Article Author:
Charles FeldmanCharles has written 147 articles for us.
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Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog.
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{ 6 comments… read them below or add one }
Something needs to be done about the whole housing crisis. It is pathetic and people need to held accountable. Mortgage brokers giving away cheep loans to people that knew they couldn’t pay it while the gov’t making it easier for the banks to give out these loans. It is everyone’s fault and we all need to feel the repercussions of it.
I don’t think it’s a good idea to let bankruptcy judges change the terms of anyone’s contract. If we can’t count on the remedies that a legal contract gives, then no one will be able to trust anyone any longer. The only reason anyone would loan another party money to buy something as expensive as a house is because they have the security of getting the house back if the loan is not paid. Take away that security and there is no reason to make loans.
Obama win!! Its great
Raising capital gains so that the few people left out there with money have no desire to purchase investments will surely help things out, right???
If you are right it’s a bad news not only for us but for everyone who depends on cheep loans. I hope he’s unable to ignore Housing Crisis. If Obama will do nothing it’ll be his biggest mistake.
Well, if banks, Wall Street investment firms and the auto industry are entitled to a handout, why shouldn’t home owners take a share of the goodies? Even if buyers were at least partly to blame for the mess we’re in, how can anyone justify bailing out finance companies who promoted the mess and leaving homeowners adrift? If Obama fails to deal with this, it will be clear how much sincerity he really has.