Letter: Welcome help for homeowners
The government is seeking to reduce the role played by Fannie Mae and Freddie Mac in the housing market. Credit: iStock
Those who believe that careless homeowners caused their own foreclosure don't realize that the last decade was different ["Foreclosure settlement expected," News, Feb. 9].
First-time home buyers thought that they would be priced out of the market. Average home prices had tripled to nine times the median salary. We now know that this was due to speculation and Wall Street shenanigans, combined with deregulation.
The young families who bought a first home between 2003 and 2008 in many cases lost all their equity and are "underwater," owing more on their homes than they could sell for. Without help, this foreclosure epidemic will be a drag on the entire economy.
Banks bailed out Greece, and banks routinely write down commercial loans for businesses in trouble. Well, now our country is in trouble. It's time to bail out the hardworking middle class.
Phil Heckler, Hicksville
