Housing market continues to collapse -- record sales AND price declines -- proposed SOLUTIONS

It is treason that the politicians and regulators let it get to this point, throwing literally TRILLIONS of dollars at bankers and (foreign) investors and doing nothing to stabilize the real estate market.

Why didn't the government simply take over all delinquent mortgages, stop foreclosures and determine case by case how much of a loss the lenders are to take, whether the owner WANTS to keep the property (there are "undesirable" homes), SHOULD keep the property and if so, restructure the loan?

THOUSANDS of very qualified unemployed mortgage underwriters could underwrite the deals from their home office.

The losses would be taken by the BANKS, not the tax payers, as the properties should be refinanced at 20% BELOW current resale value. That's because a foreclosing lender has about 20% in EXPENSES such as commissions, cleanup, repairs, sales and holding costs, etc.

Of course that's NOT fair to the people who actually saved up a down payment and/or who are current on their mortgages and LOST many thousands in equity. ALL mortgages should be restructured to adjust for the decline in value.

In the 90s we had 2nd mortgage government home buyer programs with low or no interest. Similarly, the government could offer no or low interest 2nds to EVERYBODY with a home with no payments for 10 years and the loans to be forgiven if the real estate market doesn't improve. That would IMMEDIATELY help the economy and help get us out of this horrible economy.

What about the people who don't have a mortgage? What keeps us from giving EVERYBODY a mortgage to buy a home? If you can pay $1,000 for rent, you can make a $1,000 mortgage payment.

In fact, the exact OPPOSITE is happening with lenders implementing ludicrous credit and income requirements.

And if you think we can't AFFORD this, consider the many TRILLIONS of tax payer dollars that have already been funnelled to INVESTORS.

Can we AFFORD to cause the GREATEST depression?

The Federal Reserve REFUSES to disclose where our money is going.

Obama appoints the exact same people who caused this disaster. I've read about his stimulus plan, but I don't think one should limit the efforts to giving people JOBS. I keep reading about mortgage programs for people in foreclosure, but I'm afraid that it's not working and primarily an effort to keep as many people paying as much as possible to the banks INSTEAD of giving home owners the FAIR modification and principal adjustment they deserve.

It'll be up to us to come up with real solutions.

Here's an article with some specifics on the latest real estate data:

U.S. Home Resales Fall; Prices Drop by Record 13.2% (Update2)

By Shobhana Chandra

Dec. 23 (Bloomberg) -- Sales prices for existing U.S. homes fell the most on record in November, tearing a deeper hole into households’ already tattered finances.

The median resale price fell 13 percent from a year before, to $181,300, “probably the largest price decline since the Great Depression,” National Association of Realtors Chief Economist Lawrence Yun said in Washington. Sales slid to an annual rate of 4.49 million, lower than forecast.

Sliding property values mean more Americans will be under water on their mortgages, likely leading to a further increase in already record foreclosure rates. Along with the wealth destruction from slumping stock portfolios, they also undermine consumers’ purchasing power.

“November sales just collapsed,” said Chris Low, chief economist at FTN Financial in New York. “Price declines are accelerating. As bad as this is, it’s going to be considerably worse in a month’s time.”

Separately, the Commerce Department reported today that new- home sales fell 2.9 percent last month to a 17-year low. The median sales price declined 11.5 percent from a year earlier.

U.S. household wealth already fell in the third quarter by the most on record, Federal Reserve figures showed earlier this month. Net worth for households and non-profit groups decreased by $2.81 trillion, the most since the Fed’s data began in 1952.