A 300-percent increase in foreclosures looming, or, as The Other McCain asks, “How Screwed Are We?”

Pretty.

I saw this last night via Instapundit who asked if this was the hope or the change.   The kicker:

So what will this mean when the last moratorium is lifted, the last show-me-the-note lawsuit gets thrown out of court, and the last loan modification has failed? Well by that time you’ll probably be able to buy property on a planet orbiting some nice warm star in Constellation Cygnus. But there could be roughly three times as many homes on the market as there are now. Lawler points to 1,445,000 completed foreclosures and short sales at the end of 2010, compared with 4,296,01 mortgages that are past due by 90 days or more.

Nothing like a sucker punch, especially if you’re the sucker.  According to the goons at the HuffPo, we’re the suckers if we’re still paying our mortgage:

Nearly 1 in every 4 U.S. homeowners with mortgages owe more on their home than it’s worth. Once a month, those 10.8 million are faced with a question that cuts to the core of the American Dream and offers a confusing collision between a deep-seated sense of personal obligation and a cold, simple business calculation: Should I pay my mortgage?

For decades, there was only one answer for most people: Of course I should keep paying, it’s the right thing to do. Besides, the argument went, a home is a great investment. Today, in the wake of the most seismic housing collapse in the nation’s history, that logic has increasingly been challenged by homeowners despondent about their lack of options.

Although researchersfind that some underwater borrowers who could continue paying their mortgages strategically default anyway, the vast majority continue to pay. Many homeowners, out of a combined sense of fear, shame, courage and morality, resist making what is otherwise a logical financial decision.

Emphasis mine.  So let’s do what we can do eliminate that “morality” so that every underwater dupe just walks away from his mortgage. 

Reminder: 11 percent of homes already sit empty.

What do the liberals socialists want?  Housing as a right

Because that free government apartment has worked out so well.

 Some promised RS McCain wisdom:

Consider, for example, the attempts to cushion the collapse of the housing bubble by trying to halt foreclosures or offer “assistance” to deadbeats who can’t make the payments on houses worth less than the mortgage value. […]

To adapt an old Marxian expression, we have a “reserve army” of unforeclosed deadbeats, who are on one hand a steady drain on the vitality of the financial sector but, on the other hand, a looming threat to the real-estate sector. Either the deadbeats are permitted to fall further and further behind on their mortgages (not good for the banks) or else the banks foreclose and all those homes are dumped onto an already glutted real-estate market.

So to review:

Over four million homes currently in default.

Over 18 million already empty.

One President who will add more government intervention to the fire and an army of minions who want to “Take Back the Land,” apparently from the rest of us.

Screwed, Mr. McCain, ain’t the word for it.

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2 Responses

  1. And don’t forget the seldom mentioned commercial real estate bubble. Per National Review (sorry, no link; it was in their “Week” section several months ago) Federal Reserve is propping it up with unlimited amount of money until 2013.
    There is certainly A LOT of empty real estate here in the Bay Area.

  2. […] For even more analysis, check out PJM […]

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