7 Ways for Obama to Save the Housing Market

Why Can't Habitat For Humanity Help

So many foreclosed homes are just sitting empty and you have a group like

Habitat for Humanity still building homes. Work out a plan with Habitat

to take over some of these lower priced homes instead of building new ones.

Milton of GA @ Nov 14, 2008 22:04:42 PM

# 8 Gracie to the rescue

sell sell sell

Pete Makris of IL @ Nov 14, 2008 20:00:22 PM

Home Prices ultimately must be tied to costs

No matter how anyone feels about this, one thing is an absolute; Home values must be consistent with costs. Right now, many homes are being sold for far below replacement costs. Anyone who thinks costs can come down simply do not have a working knowledge of the material and labor involved in the construction of a home. Material prices are unlikely to come down from their current levels. Drywall is already 1/2 the price it was just two years ago. Lumber is down 35%. It simply has nowhere to go unless we reduce labor costs. I'm betting you can't find too many hard-working laborers and subcontractors who are willing to work for less. Over the past two years,food and energy costs have gone through the roof, but those who work in the construction industry have had no pay increases. There simply is no more water in the well. Face the facts, Costs are likely as low as they will be. If anyone can come up with facts to support how construction costs could possibly decrease, I would be thrilled to listen. My guess is, those facts do not exist. All the doom and gloom needs to stop. The quicker we stabalize the housing market, the quicker we all live better lives.

Steve of NC @ Nov 14, 2008 19:09:12 PM

interest rates

IF ONLY COMMONSENCE WOULD PREVALE, AND INTEREST ON MORGAGES AND CARDS WERE REASONABLE AND NOT BORDERLINE MAFIA RATES.

MARK of NJ @ Nov 14, 2008 18:40:14 PM

restitution for mortgage servicing fraud victims

How about making the victims of Fairbanks (n/k/a SPS); EMC; Ocwen; and Litton's fradulent, extortionist mortgage servicing whole? Fairbanks alone illegally placed 440,000 homeowners into default. The number of EMC victims is as yet unknown, but FTC expects "numbers in the hundreds of thousands". The same for Ocwen and Litton victims. Restore the victims credit, credit the money stolen to the principal of the note, adjust the interest charged on the stolen money, and bring the victims current, and some, not all, of the problem will be solved, with no money invested from the taxpayers, and as a side effect, the investors will also be made whole. The only investment required? Inforcement of the law!!!!!

Maureen McGrath of PA @ Nov 14, 2008 15:27:28 PM

those are seven of the stupidest plans I can imagine

FEDS CREATED A MARKET FOR BAD PAPER !!!!!!!!!!!!

They are clueless how to realize fiscal solvency. CUT OUT BAD LENDING AND FREE MONEY. The bailout is spreading the problem around and will kill the entire economy like gangrene kills a body if it isn't cut out and the limb destroyed (and burn it and don't let the smoke touch anything). THAT'S THE SOLUTION. THE REST IS CORRUPTION.

huck of TX @ Nov 14, 2008 11:46:21 AM

House prices are too high

So you're saying by propping up these inflated home prices, that will encourage new homeowners to buy? And that keeping these home prices above historically norms as a percentage of income will be good for the consumer? I suppose the overextended homeowner's ability to keep borrowing money, further indebting him or her, is also good for the economy.

Real sound logic here.

How about this? Let the prices come down to where they should be, and start living within the confines of the free market. All of these plans putting a floor under prices with borrowed money are laughable. The market will bleed for longer because prices are TOO HIGH. It's as simple as supply and demand, something our elected officials will never fully understand.

Dave of NY @ Nov 14, 2008 11:24:54 AM

Many sided problem, no one-shot solution.

O.K. So. person is in a house. Person can't pay due to( X ). Person should have his Mortgage company cut monthly costs so he can aford to pay. If that doesn't work within 2-3 months then effort should go into selling the property quickly(as in cut the price to sell) to someone who will pay. Multiply this times however many people are in crisis and it shouldn't be an issue except for a few things.

1. Why the hell aren't people buying houses?Give people jobs and inspiration and they may be willing to invest in homes in America.

2. Are lenders willing to lose the greed and cut profits to firesale some of these houses? Ha! Well, they may have no choice.

3. All of these very,very bright economists should realize that economies are NEVER one sided and that many factors are making up this housing crisis and that an economies success is dependant on its people. He is a good approach "Gives us jobs,then we buy. Cut gas prices, we have money to buy. Do the first two, we lose fear and get faith in the economy so we buy big things like houses. Then we have families-then we have dreams-then we produce others who are willing to make the finanical future of the next gen' happen.

This sucky economy is based on lack of money and its associated psychology(that is-tight fisted frugalness) which is preventing us from spending on big ticket items,making the economy weaker. All of the plans seem like putting bandages on a corpse. The bandage will only be effective if you have some working biology happening underneath it. Until we get some decent pay(jobs) and a little faith in the U.S. economy the United States holistically will be nothing more than a bad investment. Afterall, look at what little good the last tax stimulus plan did. It didn't do much good for the above reasons, why repeat a failed plan?

Decapoe of NY @ Nov 14, 2008 10:48:30 AM