The media says years of easy home financing brought homeowners to the brink of disaster. I say, foreclosures are a result of being unable to make your payment. Death, sickness, job loss, divorce and many other reasons cause this to happen, even in the best of markets. When home prices increase, anyone in trouble could sell and, voila, no foreclosure. When prices fall, there may not be enough value in a home to pay off the mortgage and the expenses of selling. So foreclosures increase.
Here's the good news: Because of an easing of qualification standards for mortgages, homeownership is at record levels. More people have realized the American Dream! From 2000 to 2007, 6,534,418 more households own homes. What a boost to the economy! Why aren't we cheering for our newfound independence through homeownership? Why aren't we congratulating the economic and capitalistic system that made this possible?
When the news constantly pounds bad news into the public's head, consumer confidence wanes, consuming slows down, sales drop, layoffs begin, etc., and we spin into a deeper whirlpool of economic woe. I, for one, have a glass that is half full. How about you?
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