The View From 1776

Obama’s Latest Election Campaign Pandering

Read Obama’s $25B Deal Mocks Responsible Homeowners

The administration’s Keynesian bent leads to continual tinkering and intervention in housing and other markets, on the assumption that an academic and political elite can manage the economy by issuing decrees from Washington.  To a larger extent than in the past this may be true, given the regulatory take-over of the entire financial sector.  Don’t expect, however, that government control will revivify the housing market or prevent future booms and busts, so long as the Federal Reserve invariably floods the market with fiat money.

Obama’s latest proposal will delay, yet again, clearing the market of excessive housing inventory by leaving housing in the hands of uncreditworthy mortgagors.  It will also reduce lenders’ future willingness to make mortgage loans, now knowing that the government will abrogate their property rights with mortgage loan cram-downs.

Posted by .(JavaScript must be enabled to view this email address) on 02/13 at 03:29 PM
  1. Every now and then I run across an article, or web log by an economist, graphing home ownership levels. But they never ever differentiate real home owners from those with mortgages. Does anyone know where one would find honest figures?
    Posted by .(JavaScript must be enabled to view this email address)  on  02/14  at  01:49 PM
  2. The person who holds the deed "owns" the property, even if a loan was obtained from a bank to purchase the property. So, the fact that there is a mortgage on a property does not mean that the bank "owns" the property, in the normal sense of the term. The deed holder controls the property, and can rent it, and the bank has no rights to enter the property.
    Posted by .(JavaScript must be enabled to view this email address)  on  02/15  at  11:51 AM
  3. If there's a lien on the property, the lien-holder owns it.
    In many cases, the bank holds the deed until the mortgage has been paid off.
    Posted by .(JavaScript must be enabled to view this email address)  on  02/16  at  02:18 PM
  4. J. Jay,

    For once you are mostly right about something: a mortgage does not (normally) confer ownership on lenders. Sorry, Jgo; I have to disagree with you on the lien angle. Lien merely confers a right of recovery, not ownership. The problem with your insight, Jay, is it has absolutely nothing to do with Thomas
    Posted by .(JavaScript must be enabled to view this email address)  on  02/16  at  10:08 PM
  5. We'll have to agree to disagree, then.
    Posted by .(JavaScript must be enabled to view this email address)  on  02/16  at  10:29 PM
  6. Bob,
    I was commenting on Igo's question, not on the original post.

    Igo:

    The proof of whether the lien holder "owns" the property is to ask yourself, "Can the lien holder sell the property?" If the answer is, "No" then the lien holder does not "own" the property.

    The bank cannot come in and sell your house out from under you, provided you are not in arrears.
    Posted by .(JavaScript must be enabled to view this email address)  on  02/17  at  10:34 AM
  7. The proof of whether the person who is paying off a mortgage is the owner is whether he can tear down part of the house or build an addition without begging for permission, whether he can give it or bequeath it or sell it without begging for permission.

    If I don't own it "free and clear" I don't own it.

    At the risk of really shocking you I will go further. So long as any guberment thug can evict you, or bull-doze your home, you do not own it. You're merely a tenant at the sufferance of the "lords".
    Posted by .(JavaScript must be enabled to view this email address)  on  02/17  at  03:58 PM
  8. J. Jay,

    To be clear, you had us scratching our heads as to which pig you were poking. Your original post does not address JGO
    Posted by .(JavaScript must be enabled to view this email address)  on  02/18  at  12:17 PM
  9. JGO,

    A better answer to your question (assuming you can find data by states) is to parse the data according to state as
    Posted by .(JavaScript must be enabled to view this email address)  on  02/18  at  12:20 PM
Commenting is not available in this channel entry.