No $ No Help For Housing

As the Obama administration and Congress continue to plays politics with the American economy it is apparent that there is no money for any new government program aimed at helping the millions of Americans now facing foreclosure or the millions owing more than their home are worth.



Recently during a Twitter town hall,the President acknowledged that the weak housing market was one of his administrations chief burdens.

According to many economists, the fact is that there isn't likely to be any money or political desire to consider any legislation to address the problem.

In my opinion housing remains one of the biggest drags on the American economic recovery. Solving the housing and employment crisis together could have gone a long way toward avoiding the current standoff in Washington over raising the debt ceiling.

Isn't the reason America is at risk of default on it's debt simply because the administration relies too heavily on borrowing. Haven't they borrowed us into a corner while bailing out large corporations that they've considered too big to fail.

How can our government do so much in so little time, sometimes overnight for others while they stand and watch the American consumer struggle daily with higher food prices, continued rising oil prices, foreclosure, unemployment, out of control health care costs.

Most foreclosure now are caused by economic conditions and not by sub prime mortgages. Unemployment may be the biggest contributor to the foreclosure rate and underwater loans may be the second factor. The foreclosure rate continues to climb nationwide with virtually no end in sight. In fact we may now be living our futures.

The only way that could change would be for lenders to reduce the principal owed on both first and second mortgages in order to coincide with current market values. Lowering the principal would give people a ray of hope that they may again someday have some equity in the homes that they've struggled to keep. It would allow others to sell at market prices avoiding any possibility of foreclosure and it would make the nightmares of short sales go away.

While the politicians posture over how much more to borrow and Americans wonder what will happen to us if Washington fails us again the problems facing the economy go unattended, ignored and left to work themselves out.

I have little faith that our government will do what's right for the us, I have great faith that if left to what once was middle class Americans we would find our own way and someday get our country back on track.

Can Housing & the Economy Recover?

"Oh what a tangled web we weave when first we practice to deceive."

The American economy is hurting with :

-a housing market that barely has a pulse
-extremely high unemployment
-a government swallowing up massive losses from bad mortgages
-billions in bailout money for " too big to fail " shark infested corporations
-banks unwilling too help troubled underwater borrowers
-banks unwilling to help struggling small business owners

All at the expense of the American taxpayer.

Is the tangled web beyond repair ? When do you draw the line and say it's time to start fresh ?




We've allowed our controllers way too much control. Our American dream, our pride, our independence and dignity have been compromised. Yet the dance continues. The song remains the same.

I can think of lots more cliche's while the politics and posturing continue at the expense of hard working poor and middle class Americans struggling to stay afloat.

What would it take to right the ship?

Perhaps it's time to begin to understand that we are entrenched in a system that doesn't work anymore. At least not for most Americans.

The opportunities to address the deterioration of the housing market should have been the number one item on the agenda in heading off the financial crises. We were once a nation dependant on housing, we now are struggling to survive without it. Home ownership which was a brass ring has become a nightmare for many American families. Opportunities for those who may be in a position to buy a home are presently endless. With so many underwater borrowers it becomes a challenge to find the few that are solvent and are wanting to sell. Folks with equity in their homes aren't terribly inclined to compete with the low ball prices of the foreclosure down the street or the neighbors short sale.

Owning a home in America will surely be a privilege in coming years. Even a status symbol much like it was when I was a boy growing up in New York City. Mom and Dad had six of us and we were renters until I was about 12 years old. It didn't mean much to me, but my father was probably as proud of buying that first house as anything he had done before or after.

Today's financially troubled underwater homeowner is truly only a renter with no equity and an out of touch landlord. After all how can you own a home without equity in it? Banks made bad decisions by tempting borrowers with unrealistic amounts of money based on the banks valuation of the real estate involved. Borrowers responded to relentless marketing and reasoning that they were or could be sitting on a pile of cash. The bank of course had little concern after packaging and selling the loans to investors like government sponsored entities Fannie Mae & Freddie Mac. Today these 2 corporations, after being seized by the government, continued bleeding cash to the tune of $150 billion. Oh by the way "seized by the government" at taxpayer expense. After all, anything the Feds do we pay for don't we?

Banks however continue to flourish and boast about improving stock prices and bottom lines while still paying out lavish bonuses. The criminals who created the mess go unpunished and even rewarded. Just look at Countrywide Home Loans for a shining example of these injustices. That CEO sold to Bank of America and bowed out with a fortune while avoiding any criminal charges.

The tangled web is beyond repair. The country needs fresh ideas with humble heartfelt leadership. Our greatest shortcomings may be that we want to believe in someone and that we go through life with tunnel vision. If America continues trying to fix things that can't be fixed simply because it benefits a few than the majority will continue to struggle as a result and we will evolve into a nation without a middle class affecting everything within it.







George Sinacori
GES Real Estate LLC