Reply #24: Ownership Society Failures

[UpInArms]

http://www.howestreet.com/articles/index.php?article_id=2137

excerpt:

"After recording more than 9,000 foreclosures in 2005, Wayne County ended January with 3,364 homes in active foreclosure, the highest of any county in the nation by more than 1,000, according to statistics compiled by Foreclosure.com of Boca Raton, Fla….

"The numbers illustrate one of cruelest side effects of the region's economic troubles. Every repossessed home is a broken American dream for families, who lose not only money and a home, but also give up years of happy memories and hopes for a solid future.

"The burgeoning foreclosure rate also takes a toll on the larger community.

"Lenders, stuck with the homes, lose up to $50,000 per house as they clear them out at below-market prices. That can lower property values in neighborhoods, pushing more homeowners to move out, and eventually hurt property tax collections for local governments.

"'Foreclosure depresses an area in a variety of ways,' said LaSalle Bank chief economist Carl Tannenbaum.

<snip>

"The well-dressed, middle-aged General Motors Corp. line worker once owned the home free and clear. During a separation from his wife, he took out a 30-year mortgage but fell behind in the payments. He refinanced to a subprime loan charging 13% interest. But he had fallen behind on taxes, too, and now owes more than $64,000 to the lender, including $16,000 for taxes. Although he's declared bankruptcy, the home was excluded.

<snip>

This is going to prove to be the ultimate failure of Bush's "ownership society." Pearch is correct: Not everyone can or should be a homeowner. We have hundreds of government programs all trying to force home ownership on people who cannot afford, and perhaps do not even want, homes.

...much more...