Housing Crash - Update: Obama to give $1500 to you for short-selling your home!
May 26, 2009
What it is
Part of last week’s new bill signed into law by President Obama effectively takes $1,500
of taxpayer dollars and puts it in the pockets of those who decide to short sell their
home instead of allowing it to go into foreclosure. The idea is that the quicker the bank
can regain possession of the home, the quicker they can turn around and put it back
on the market. This is very advantageous to a bank in a housing market that continues to collapse.
What it means
This is another miserable attempt by government officials to artificially prop up home values and
prevent the natural course that has to take place, namely the return of the market to the prices
before the housing bubble exploded. In the end the
legislation is an awesomely sweet deal for the
banks and homeowners, but a horrible deal for the rest of the country. It is not the first such
attempt and it surely will not be the last. In the meantime, the housing
crash continues.
