In the Wake of the Foreclosure Crisis USA needs to Rethink on Home Ownership

Why should one need to own a house when only in 2008, millions faced foreclosure and another 15 million are sitting on loans that are worth more than the plummeted value of their homes? There is no doubt that the bloom on the house ownership rose has faded and the petals are falling with the exotic scent fading away.

The answer is not far to seek. Even during the middle of the crisis when Americans were asked about their expectations regarding appreciation of property value during the forthcoming year the stock answer, as noted by Zillow.com was that 70% surveyed said that they did not apprehend further drop in prices in the following 6 months. Over a quarter expected that it would actually go up in during that period.

Many Americans continue to depend on antiquated measures in deciding on buying or renting. They often found their decision on how long they would stay in a house. But generally they did not think of the chances of them being forced to shift because of unemployment, broken marriage, disability or death.

The federal stabilization programme is focusing on recycling foreclosures back into the hands of the present owners. It means the idea of house ownership is dominating the thoughts of ordinary Americans as well as policy makers.

About ten years previously a book was published – Examining the Unexamined Goal. Repeated studies showed up the risks of house ownership. The irony is that today there are many who are keen about house ownership because of the allure of fallen prices. But is this the right choice or are Americans taking the wrong path again?

Thought should be given as how to government policy should give weight to both sides of the coin – proper choice of mortgages as well the choice between owning and renting.

Instead of allowing speculators to have the run of the show again, non-profit bodies could buy up a good number of properties and rent these out after slicing them into small complexes. It is high time house ownership was made into one of the alternatives and it should also be made innovative as well as affordable covering a broader section of the population.

Related Posts

• Foreclosures and the Purse of the Average American
• Methods of How to Manage Your Personal Finance – Pitfalls to Watch Out For
• The Black Middle Class is Going through a Period of Crisis Triggered by Foreclosures
• New Mexico Foreclosures for Sale
• Foreclosures Jump Again Despite Taxpayers Bailing Out Fannie And Freddie