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

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. 🙂