Millions to Lose Homes in 2010

On December 8, 2009, an inquiry was held by the U.S. House Committee on Financial Services in relation to the status of the housing market and foreclosures - needless to say, it is not a pretty picture. Senior Managing Director, Laurie Goodman, of Amherst Securities who specialize in trading mortgage-backed securities testified to the House Committee that in the third quarter of 2009, 7.9 million homeowners did not make their mortgage payments and to make matters worse, approximately, 7 million of that 7.9 million will likely foreclose on their homes in 2010.

How's that for Hope and Change - Feeling all tingly inside now?

Today's news about the housing market is as confusing as it can get. These economic predictions made from either professional economists or the news drab run circles around the average consumer - either we have hit bottom, or will hit bottom, or that the bottom is so far away that you cannot even see it using the Hubble Telescope. More or less, all of this is nothing more than optimism laced with the notorious "Yes We Can" syndrome. Millions have lost their homes already so why would having more homeowners lose homes in 2010 be any surprise? The financial crisis end is nowhere in sight and yet, from a democrat point of view, things are moving just fine.

In the Obama world, bailing out banks is more important that the person who will be sleeping out in the street - why should Obama and the liberals care, they are in power while the average family is not. Bank profits are rising - not to mention the greedy bankers are already working as fast as they can to tack on fees and charges on credit card consumers before February 1, 2010 as they won't be able to afterwards because of the changes instituted by Congress - did I mention that Congress always seems to create laws to take place months down the road so those like banks can make changes to avoid being trapped?

The Center for Responsible Lending has testified that the effects of high unemployment and as a result, defaults are increasing and in the end unless something else happens, nearly 13 million homeowners will have lost their homes. To add to the suffering, this doesn't take into account the millions of homes whose home values have plummeted resulting in billions of dollars of homeowner wealth lost. Of course, this translates into county and state government loss of revenues - something no one is talking about. After all, it's the state's problem now isn't it?

The Obama Home Affordable Modification Program is a complete joke and has compromised the lives of hardworking homeowners because the modification program has failed to live up to its standard of helping those in need. Bank and lending institutions have figured out a way to gauge the loop hole by doing these trial basis modifications which means, if the homeowner can handle the lower payments, then it becomes permanent. Yet, a small number of homeowners have received a permanent mortgage loan modification - why should the banking industry care if they are getting money from Uncle Sam?

The filings of both Freddie Mac and Fannie Mae indicated that CEOs, Michael Williams and Charles Haldeman were given $6 million each in 2009 and other top management executives were given $2 million or more for each of them. Moreover, to add more insult to injury, it is estimated that if this so-called bailout plan continues, the government lending to these banks from the affects of the mounting foreclosures could actually rise to $1 trillion.

These bank bailouts need to come to a screeching halt because by giving these banks more and more government money - your money - it continues to discourage banks from reducing any principle on any mortgage whose values were inflated by all of the fancy mortgage packages that should have never been used to begin with. Why? If you stood to lose money but someone else will pay you for your losses, would you do it? Of course you would, who wouldn't? Need a bailout? Call the one-stop money shop, the government.

But never question a democrat because they know better than the average American that even though this situation calls for a massive moratorium on foreclosures and reductions in loan principles, by them remaining quiet about it, they view this will pass and all will be good.

One can blame certain faults on Republicans but not because Republicans didn't care, they did but they also realize free markets and that spending your way out of debt by using debt, will not work. Several times they raised the alarm bells that Fannie Mae and Freddy Mac was about to burst but no Democrat listened.

In July of 2008, Congress gave the Treasury - and head honcho, tax cheat Treasury Secretary Timothy Geithner - the right to provide as much aid as needed to both Freddy Mac and Fannie Mae. In turn, that means, the Treasury does not need any additional approval from Congress for anymore funding - spend as you will because we won't look.

And who was the majority control of Congress in 2008? Democrats - need I say more?