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BVC #18: It’s Better to Not Need a Bailout [VIDEO]

Posted By Jim On 08/05/2009 @ 7:06 am In Personal Finance | 4 Comments

Stimulus packages have become all the rage the last year! $7500 first time homebuyer loan [3], $8000 first time homebuyer credit [4], Making Home Affordable [5], $250 Social Security stimulus checks [6], Making Work Pay [7], … the list goes on.

I’m sure you’re upset… but watch this quick video and I think you might feel a little better about it.

I wanted to clarify something I said in the video – that foreclosures have been in the single digits. I meant the percentage of foreclosures, versus the total number of homeowners, was in the single digits (<10%). As it turns out, my memory was wrong... it's actually much less than that. Michael Barone of US News & WOrld Report wrote about the regional nature of foreclosures [8], citing a national foreclosure rate of 11 per 5,000 housing units. That’s only 0.2%! Even the highest foreclosure rate, Nevada at 66 per 5,000 housing units, is a “mere” 1.32%.

Then you have the 20% of homeowners who are underwater on their mortgage loans [9], which leaves 80% of homeowners unable to take advantage of the Making Home Affordable Program.

Either way, there are a lot more people not being helped than are being helped… and I’d rather not be drowning and need a life preserver.


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[1] Tweet: http://twitter.com/share

[2] Email: mailto:?subject=http://www.bargaineering.com/articles/its-better-to-not-need-a-bailout.html

[3] $7500 first time homebuyer loan: http://www.bargaineering.com/articles/7500-first-time-homebuyer-tax-credit.html

[4] $8000 first time homebuyer credit: http://www.bargaineering.com/articles/8000-first-time-homebuyers-credit.html

[5] Making Home Affordable: http://www.bargaineering.com/articles/making-home-affordable-mortgage-refinance-modification-program.html

[6] $250 Social Security stimulus checks: http://www.bargaineering.com/articles/250-social-security-stimulus-check.html

[7] Making Work Pay: http://www.bargaineering.com/articles/make-work-pay-stimulus-chec-tax-credit.html

[8] regional nature of foreclosures: http://www.usnews.com/blogs/barone/2009/02/20/foreclosures-are-a-regional-not-a-national-problem--half-are-in-four-states.html

[9] 20% of homeowners who are underwater on their mortgage loans: http://finance.yahoo.com/real-estate/article/107041/House-Price-Drops-Leave-More-Underwater

Thank you for reading!