In an article today, Realtor Magazine outlined Senator Obama’s and Senator McCain’s stance on the real estate crisis. Further insight to each candidate’s plan can be found on Trulia in a post by Julie Jones where they have a good discussion already started. So how does this all affect the Hawaii real estate market? Let’s take a look at both sides and see if we can figure that out.
Here’s an overview of both stances:
- Create a $10 billion foreclosure prevention fund to help homeowners who face foreclosure.
- Empower bankruptcy courts to modify a homeowner’s mortgage payments.
- Create a simplified standardized metric for calculating loan costs and provisions and requiring full disclosure of such costs.
- Stop Fraud Act creates criminal penalties for mortgage fraud.
- Increase state and federal funds to enforce the Stop Fraud Act.
- Mortgage credits for homeowner’s that donâ€™t itemize deductions.
- Boost the economy by lowering tax rates and increasing business investment incentives.
- Direct assistance to homeowners
- No taxpayer money should go to real estate speculators, and lenders cannot use FHA to bail them out on all the bad loans they made.
- Reform financial and lending systems to stop this from happening again.
- Assist homeowners (in high growth states forced into risky mortgages) get into safe Federal Housing Administration loans.
- Financing for local groups trying to solve these problems within their own communities.
These two very different stances both have interesting points. Obama wants to throw more money at the problem, but where will the money come from if he doesn’t plan on increasing taxes? McCain’s plan lower’s taxes and gives incentives, but will this really boost the economy in it’s current state?
What I’d really like to know is if McCain considers Hawaii a high growth state that forced homeowners into risky mortgages. I know that on my Island, the price of homes more than doubled in just a few short years. Would this be considered a high growth rate? I know of several families forced into bad loans that could really use the assistance.