Are You Serious?

A California Initiative, go figure, would amend the state constitution to make home ownership a right by banning foreclosures. The Foreclosure Modification Act would ban foreclosures by mortgagees.

Let's see if we can put a list of pros and cons together for this one.

Pros:

1) Current homeowners would be able to keep their houses without ever having to make another mortgage payment.

2) Okay, there is no "2"

Cons:

1) Banks lose 100's of Billions in current assets and future revenue from interest, which leads to bank bail outs which costs tax payers.

2a) No bank will ever lend on a home loan again, leaving only cash buyers, reducing property values.

2b) No lending and low home ownership will lead to massive drops in employment

3) Reduced property values will lead to either lower property tax revenues or higher tax revenues, depending on which way they want to go with it, Lower assessments or higher percentages. Since the owner does not have to pay a mortgage payment, they may be okay paying higher taxes.

4) Deteriorated neighborhoods. We have all seen what low cost housing looks like in areas of Detroit, Chicago and L.A., as well as many other parts of the country.

Read the article and let me know what you think.

http://ping.fm/HxfJM