what can’t the government give people good advice?
Local and state government and even the federal government are telling people to try and stay in their homes by cashing out annuities using savings, getting another job or borrowing from family. I know a few who have followed this advice and now they have no savings no annuity they owe their friends and family money and they are still losing their house.
The bottom line is someone cannot afford a home then they should move on and not waste their money
Why doesn’t the government help people in this situation? All state local and federal government tells people that it is important to stay in their house. This is not the case it is just a place to live and even if someone gets current on a mortgage their paying twice the mortgage of the current market value and they are upside-down on their loan about 200k (in cA) the advice should be clear they should negotiate a deal with the bank if possible or move on, There are too many homes for sale and even if these people get current on a mortgage and have to sell it, it will be a short sale or a foreclosure because again they are upside down. And realistically of they do get a principal write down form the bank it really can not be sold because there are fees to sell a house.
It is a sad situation but if we clear out dumb advice and think logically and rational most people should be walking away from their homes, or trying to work out a deal with the bank (a reasonable deal).
Basically when someone that paid too much for a home cannot afford their mortgage at some point because of the mortgage resetting or loss of income ECT. They should decide early on if the home can be saved and stop making payment and work something out with the bank.
Why can’t the government start giving people good advice????