Americans More Unhappy With Feds' Housing Fixes

Posted by: Chris Palmeri on November 11, 2009

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Trillions spent on propping up banks, buying mortgages, tax credits and new programs designed to lower payments and prevent foreclosures. And yet a new survey from Move Inc., the parent of Realtor.com, says Americans are growing increasingly dissatisfied with how Washington is handling the housing mess.

The October 2009 survey found that the federal government’s approval rating by consumers on housing issues has slipped since March 2009. By a six-percent margin, Americans said they don’t think the government is doing enough to stabilize the housing market (48.2% compared to 42.2% five months ago). According to the survey, consumers still want low interest rates (31.4%) and action by the government to help homeowners prevent foreclosures (28.5%), the same two top priorities expressed by survey respondents in March.

The survey found that public participation in the programs to prevent foreclosures is much lower than anticipated. In March 2009, several days after the details of the Making Home Affordable program were announced; Move’s survey found that 17.6 percent of those interviewed said they intended to participate in the Administration’s program. Now only 8.8 percent said they actually did participate.


The number of consumers interested in investing in real estate has doubled since March. One out of eight (12.1%) homebuyers today plan to purchase a home as an investment property, compared to 5.6 percent seven months ago.

Fear of foreclosure is fading. In March 52.5 percent of all survey respondents said they were concerned that they or someone they know may face foreclosure in the next 6 to 12 months. That number dipped slightly to 45.1 percent in October.

The survey of 1,000 people was conducted the third week of October.

Reader Comments

William Taylor

November 11, 2009 4:29 PM

That's interesting. UPI has the number at 1:20 intend to buy a home next year and the other news items about this the same.
In fact this article is just the oppisite of all the other ones I've read. Typical pro-business proaganda. But it's what you want to beleive; huh?

Waitaminute

November 11, 2009 6:38 PM

People would love to participate in programs to prevent foreclosures. But, it is kind of difficult to do so when the lender won't even talk to you. Pro-business is right. BW makes it look as though the borrowers are the ones not taking advantage when in fact the lenders don't have to participate at all if they don't want to. They take the government incentives and add it to their bottom lines while this corrupt Congress gets to say, 'Well we put the program out there, it's up to other people to make it work.'

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November 11, 2009 6:56 PM

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leondro jerry

November 11, 2009 6:58 PM

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tom h.

November 11, 2009 7:08 PM

Not too surprising that a survey backed by a realtor group would come to a self-serving conclusion. Unless BW adds some critical analysis, there's no reason to take these surveys seriously.

Strategery

November 11, 2009 8:32 PM

This is just part of a bigger problem: complete failure of the bailouts and stimulus plans. Instead of giving the banks money, one of two things should have happened: 1. Nothing. Let the banks collapse. 2. Direct the stimulus dollars directly towards consumers (through jobs programs, direct payments, tax breaks, increased unemployment benefits, etc.). Consumers could then repay their debts, keep their mortgages current and/or spend money in the economy. This would have helped Main Street instead of giving Wall Street money to gamble and pay bonuses.

Eric

November 11, 2009 10:29 PM

Strategery, I think I have seen you make this suggestion somewhere before on another site, no? I have to agree with you, it would have had a much better affect to give the taxpayers their own money instead of to the people who should have known (as they are in the business of lending)what was going to happen. Let them go out of business since they are failures or put the regulation dogs on them big time.

jambo

November 11, 2009 11:49 PM

Should have let the banks collapse and people lose their homes. Yes, that would give us mega economic pain, but the market would have corrected itself, and heal faster and healthier. Instead, we have these massive band-aids and the fat cats on Wall Street are laughing their way to their personal bank account.

Ballbuster

November 12, 2009 5:34 AM

In his sermon that real estate is the path to riches, real estate evangelist Palmeri has even gone as far as soliciting spiritual words from worm tongue Lawrence Yun of NAR. The NAR and its cronies have lost all credibility as the bursting of the real estate bubble disproved their dogma that real estate prices never decline; real estate is a safe investment; real estate will make you wealthy. Contrary to Palmeri's propaganda that Americans are "unhappy with Fed's housing fix," the truth is that majority of America are unhappy with Fed's bailing out the big banks in order to keep high housing prices. Many banks are insolvent because the real estate meltdown destroyed their equity in the collateral. To prevent the real estate prices from deflating further and causing more bank failures, the Fed has allowed banks to side step "mark to market" accounting rules and retain most non-performing assets on their books for indefinite time. Evangelist Palmeri missed the boat--on purpose in order to serve his "special congregation" from whom tithes, offerings and blessing flow, and for whom Palmeri issues “Dispensation.” Having turned away from the straight and narrow, Palmeri has twisted the truth to serve his perverted goal: to serve as Lawrence Yun's stooge. On a Friday evening confession, a repentant Palmeri would admit that the primary objective of the Feds programs is to bail the bank out of this mess, not to save the homeowner who over leveraged.

Bail-out Nation

November 12, 2009 7:50 AM

Get ready for more Big Government hand-outs direct to struggling homeowners with mortgages beyond their incomes. A few more months of demonizing Wall Street and then Main Street can expect their multibillion dollar government bail-out, too........Is this what makes the US a great country???

Niko Alexopoulos

November 12, 2009 8:56 AM

There is only one way to solve this. Put the power back on the American citizen's hands. Oh wait a minute, the power was always there, they just did not know it.
Well knowledge is not power, it's what you do with that knowledge that is power!
I don't care if you're Republican or Democrat or Independant...the bottom line is that we are all AMERICANS first and the moment we stop fighting for one another is the moment you surrender...I for one will never surrender!
Together lets lead the charge and make it our "mission" to go out and seek as many homeowners as possible who need our assistance. While it's nice to build affiliates, the glory is in helping the homeowner...reach out and make it happen.
Get your game on and together let's provide Home & Financial Recovery to all American Homeowners who have been cheated by banks and the government system.
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jamesbond

November 12, 2009 9:30 AM

ballbuster should be the one writing the articles.He's right on.

jamesbond

November 12, 2009 9:30 AM

ballbuster should be the one writing the articles.He's right on.

Housing

November 12, 2009 11:25 AM

The majority of the people not happy with the housing fix, are the people that can not afford the house they bought. A lot people went out and bought the biggest, expensive house their credit score could handle and when any thing happens to thier budget, thier in line with the mortgage company to fix their mess. A mortgage comapny can not go down to zero percent interest on a loan and stay in business.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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