I can’t begin to answer that question. But after one year, I find it curious we don’t see more in the press about the results.
Newsweek.com ran an article with a series of quotes from 2004 to 2009 that is quite interesting – The Financial Meltdown’s Best Quotes. Of note;
- “If the government is going to get into the bailout business, shouldn’t we also be focusing our resources on the average Americans, the taxpayers, rather than the sophisticated and well compensated Wall Street Bankers…” Senator Richard Shelby, R-Ala, during a Senate Banking Committee, Sept. 23, 2008
- “If money isn’t loosened up, this sucker could go down.” President George W. Bush, on the foundering bailout package, Sept. 25, 2008
One year later we find the foreclosure crisis worse nationally than predicted. Remember the buzz in the media about foreclosures as a personal problem? Homeowners who got greedy, bought houses they couldn’t afford, etc. Many people felt like the bailout was going to help irresponsible people, and why should taxpayers bear that brunt.
That’s a good question. But a year later, it’s clear that the bailout money has not been directed at stopping foreclosures, and helping the individual taxpayers. In fact with rising unemployment, foreclosures have spread further into the fixed rate loan market, hitting every segment of the population.
As a short sale specialist, I work with families in the midst of the foreclosure process. It’s become clear to me there are two realities….
- Bailout money went to both Wall Street firms and the banks. Rather than use the funds to do loan modifications, the banks are once again selling mortgages to Wall Street…the same cycle that created our problems.
- In the meantime, the economy at the “street” level, continues to burn in the wildfires of foreclosure. The only real solution I see working is short sales, one family at a time.
A year ago, I wrote an article suggesting that the economy will be best corrected by creating solutions at “main street”, not Wall Street.
Credit Crisis – One Woman’s Solution. Perhaps I remain like the child in the “Emperor’s New Clothes”, I’m afraid I don’t see the suit – to me he’s just naked. Working with families in crisis, one year later, I don’t see the bailout solution working on “main street”.
Short sales remain the best working solution to stop foreclosure. As sad as it may be to give up the dreams of owning a home, it’s so much better to preserve credit and avoid the nightmare foreclosure will bring.
Additional articles of interest:
- Foreclosure Plan Ill Suite for Changing Crisis, WSJ.com
- The U.S. has miles to go with it’s mortgage modification plan.
If you know anyone who is affected by the foreclosure crisis and would like help, please feel free to contact me at www.Call4Susie.com.
