I am linking to an article from Bloomberg.com regarding the president's proposal to stop foreclosures, well sort of. The proposed law “prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed." HAMP is the Home Affordable Modification Program.
In my opinion, this is just forstalling the inevitable. With 25 percent of homes underwater, ARM's adjusting upward, and unemployment growing unabated, you can count on continued foreclosures and short sales for at least the next year or two. According to RealtyTrac, Inc., there were 2.82 million properties lost to foreclosure last year and 4.5 million filings are expected in 2010.
Even in Harford County, foreclosures are a problem. In 2008, there were 967 absentee trustee filings and in 2009 there were approximately 1,500. That is 125 per month. This expands the supply of houses for sale at a time when demand is down, a recipe for lower prices. According the MRIS, the median sale price of houses in Harford County declined approximately 8 percent over the past year.
My solution is simple: cut taxes, cut government spending, stop over regulating every aspect of our lives, and set the American people free to be the creators and innovators they are. Once we are unleased to make a profit, jobs will come back, foreclosures will subside, and real estate values will finally stablize.