I have been following a little bit of the politics behind the foreclosure "crisis."  While I have empathy for people who lose their property because of circumstances sometimes out of their control, is it reasonable and fair to expect the government to bail people out?  In an election year I guess the answer falls somewhere between maybe and yes.  Hillary proposed spending $30 billion so the government could buy back foreclosed properties and as I recall, she did not say whay they would do with those properties, how they would maintain them, who would buy them, and how the sale of government owned properties would affect (it would kill) property values in surrounding areas.    Every bargain hunter would salivate at the thought of government owned repos.  I have not followed what the others have said because I am fundamentally against the idea of government bailouts of any kind in any industry.  Bear Stearns CEO earned $38 Million in "compensation" in 2006.  Government bailed out Bear Stearns recently cost tax payers $30 BILLION.  The average person could'nt be happy with that trade.

In the real estate business like many sales jobs, we work on straight commission - if we don't sell we don't get paid.  If we have a bad few months and no income coming in, does anyone feel sorry for the realtor?  I doubt it. I don't expect or want sympathy.  Would I expect the government or my mortgage company to bail me out?  Hardly?  What happened in southern California in the early to mid 1990's is happening nationwide today - people in foreclosure losing their home, markets soft, and things in some turmoil.   What will happen eventually:  Markets will recover, confidence will improve (watch after the election for confidence levels to go up - the people want change), sellers will be able to sell and buyers will complain that prices are too high and that homes are unaffordable.  The one big difference I note between so Cal and now is back then people were losing their jobs and losing their house.  From what I have read, many of the people losing their houses these days are still working (exceptions in Midwest), they just got bad loans.  I do like the idea of people in these sub prime loans being able to refi into an FHA government insured loan.  That would be an excellent option. 

One bit of advice I give to buyers who are nervous and influenced by the negative press: Buy in a buyers market like today's market, plan to hold the property for 3-5 years minimum.   

Thank you for taking the time to read my blog.