Tuesday, May 25, 2010

Real World Problems

I manage a 460 unit apartment community during the week.  One day every month the sheriff shows up to my property to lock the doors of people that are in eviction and were unable to come up with the money.

This morning we locked five doors, two of which had the families still living there.  Families with children.  Today those kids are going to get off the school bus and not have a home.

When I talk about people getting foreclosed on in their mansions, or having to walk away from their mortgage, it is not a horrible thing.  Why? Because they can rent.

If the government was not force feeding Americans with 100% financed loans with tax credits and low interest rates do you know what they would do?  They would just rent. 

Then the price of homes would fall to a level where Americans could afford real loans with real down payments with real interest rates.

Do you know who would buy a home at that point?  Me.  I would.

If the government would just let the market clear, some people would lose their homes, they would rent, and prices would fall.  That is not sad.  What is sad is when people lose the homes they are renting.  The families that I worked with today.

Anyway, let's take a look at how the government housing program is working out so far.......

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