There’s a growing call for a national moratorium on foreclosures, although at present the White House is standing strong and is opposed to one.
To me, this is the right course of action. You can’t at this present time throw even more uncertainty into the fragile housing market. You also have to keep in mind that there are valid foreclosures that should go forward.
But you say, people losing their homes is a tragedy – what do I know? Well, of course it’s a tragedy. But I was always taught, always thought, that part of being American was all about personal responsibility. The deal with the bank, although it may be doing a deal with the devil, is that you take out a mortgage, you keep up with your repayments or your bank gets the house. That’s the devil’s security so it will continue to lend money to others. It’s the rules.
The housing market is causing pain at the moment and I’m afraid we’re going to have to see more pain before it gets better. The government is there to see big picture – and it would benefit the US more for the government to do nothing – to allow the market to tank and then figure out its own recovery.
Because I’ve also been taught that’s what Americans do. Recover.