Will the administrations mortgage refi plan help the housing market? Getting to the bottom of our housing woe`s
Recent news out of Washington gave many homeowners a glimpse of hope as the administration announced plans to refinance borrowers despite the upside risk due to underwater housing values. Many analyst`s and market watchers fear this move, albeit, good for the homeowner, still will not get to the underlying problem of the housing market. Many attempts to improve housing amidst a slow economic recovery have fallen short of providing that spark so many have hoped for. While reducing mortgage payments helps the disposable income for a great number of homeowners, it does not address the real problem plaguing a fruitful recovery. Recent reports have suggested that there is at least 3 trillion dollars lost to upside down mortgages giving many homeowners a dismal outlook. Because the administration has chosen to avoid addressing this pressing issue, we may continue to see weak numbers on the housing front. To really charge up our sluggish recovery, a program is needed to help equalize the behavioral deficiencies facing many Americans in today`s challenging housing markets? The question remains, who will bear the loss if a program for confronting this issue is created?
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