I have been seeing more and more reports about the government working behind the scenes to figure out what to do about the burgeoning foreclosure problem in the U.S. This story running on HousingWire.com gives a picture of some of the internal debates going on.
Other reports that I have read state that Sheila Bair, head of the FDIC, is proposing to use $40-$50 billion of the $700 Billion approved in the bank bailout to buy up or somehow support 2-3 million delinquent or soon to be delinquent homeowners.
I will be commenting on this often as the momentum gathers steam to do something for individual homeowners. The one thing that is puzzling to me is that the market really is finally starting to work. We’re seeing it in California, and we’re certainly seeing it here in the Twin Cities. Yes, prices are down, but that’s exactly what had to happen to get the buyers back in to the market. That said, there are a lot smarter people than me who are trying to get this figured out.