Monday, September 6th, 2010

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The Housing Market


For many, the dream of home ownership has turned into a nightmare. Here in Orange County, there were 8,500 foreclosures last year. The good news is that the number is down from the year before. The bad news is the number of families defaulting on their home loans continues to grow and has almost doubled in the past two years. These are tough times in America and we’re not out of the woods yet.A woman came up to me at a recent community event and begged me to help her save her home. She told me that her family had been raised in that home and that it was also the place where her father died. The emotional connection was deep. She and her husband had enjoyed a prosperous life. So prosperous, that they invested in a business opportunity with their savings anticipating a strong return. Then the collision of Wall Street and Main Street hit. Now they can’t afford their mortgage. I have heard so many stories like this.

The banks that were saved by the bailout should have been required to do more to help people hold on to their homes. We’ve learned tough lessons about the adverse impacts of a financial system that leverages people’s futures without a sense of accountability. Those who speculated in the housing market took a calculated risk. Those who saw the “subprime” sales pitch as a gateway to home ownership and the American dream were the victims of a scam. Those who have lost their jobs, their investments and their savings as a result of the national economic downturn have been brought to their knees. There are no magic wands, but without leaders in Washington who are prepared to fight for the people of this country, the situation will get even worse.My parents grew up in the depression. The life they built was not extravagant, but it was comfortable and provided the means for my brother, sister and I to attend college and build our own futures. My college and post-college age children face a more uncertain future. Even with falling home prices, few of us believe our kids will have the resources to live in the communities they grew up in. Their future will be shaped by the vision of today’s leaders. We need people in Washington who see government as an instrument for civic improvement. Who believe in the “possible.” Who will protect the people, not the profiteers.

It is tempting to abandon our dreams in tough economic times. We must act to bring the housing market and the financial system that supports it back into balance.