Another government giveaway, this time it's mortgage aid to the jobless
There is no doubt that persistently high unemployment is hurting the housing market and sometimes leading to foreclosures but I'm not sure that more government giveaways are the answer. In my opinion, job creation would be a better alternative but the politicians aren't necessarily listening to me (or reading this blog).
But according to Boston.com, "Unemployed homeowners may be able to borrow up to $50,000 to help them make monthly mortgage payments - and in some cases not have to pay the money back - under a federal program unveiled yesterday."
OK, time for a little perspective and opinion. I am neither a tea party supporter or a radical left winger, I'm more fiscally conservative and somewhat socially liberal and was probably a libertarian before it became trendy. Along with my wife, we're just hard working taxpayers who pay our bills on time but it annoys me to see taxpayer money being thrown around at every problem with seemingly no thought to the consequences.
And there's more:
“In some cases, the government loan could actually turn into a gift, officials said. Under the program, as much as $50,000 can be borrowed over two years, depending on the applicant’s qualifications. Borrowers who remain in their homes and stay current on mortgage payments for five years after that will not have to pay back all of the money; for those borrowers, the government will reduce their loan balance by 20 percent annually until it is eliminated, according to HUD.”
Wouldn't it be better to create jobs paying up to $50,000 to help these distressed homeowners and at least get something back from their productivity than to just give out interest free loans.
And what are working people who are continuing (and possibly struggling) to pay their mortgage supposed to think of all that. As crazy as it seems, perhaps some might be thinking that they would be better off to lose their jobs and enjoy a free ride with the program.
I've said over and over on this blog that the Charleston real estate market is doing much better than many other real estate markets around the country that get all the headlines and one reason is that our local economy is better than most and jobs are being created here. Therefore, people want to move to Charleston, get a job, buy a home and raise their family. That's how it works. And with 10 percent unemployment in the country, the housing market will not fully recover until jobs are created and obviously, private sector jobs would be preferable to government jobs but job creation of any kind will do right now.
What's next, McMansions for the homeless.