The Wall Street Journal recently ran an article about an administration plan to rent foreclosed houses owned by Fannie Mae and Freddie Mac. The logic goes something like this: Since all these people have lost their houses to foreclosure, they have to live somewhere, and are likely renting. The glut of renters is causing rental rates to increase, and the Government just happens to have a handy inventory. Wow it's a match made in heaven. Almost as if it was planned that way...Oh, did I say that out loud?
I know that there are a lot of people who think this is a great idea from a financial standpoint. Democrats no doubt will be eager to turn the foreclosure mess they created into a cash cow. Even some respected economists speak favorably of the idea. I wonder how they would feel if one of these new rental properties was next door to their home?
It is almost a guarantee with our Government in charge that these rentals will be filled with the poor, unfortunate and down-trodden. Someone once said that the best way to deal with homelessness is to buy everyone a home. Socialism at its core. We buy their clothes, cell phones, food and a little recreation, so why not a house as well? So the Government rents it to them, and how far a leap is it to imagine a subsidy, or forgiveness of amounts due? Perhaps they can live there free because the Government doesn't have the resources or desire to throw them out? The possibilities are endless.
I live in an older neighborhood that through the last thirty years has been largely owned homes. Recently we have been treated to the joys of a diverse group of renters. We have a guy at the end of the street who does auto repair in his driveway. We have some who can't tell a lawn mower from a lawn chair. And the figure eight tire tracks in the street might qualify for the latest County art project.
We are all concerned about the value of our homes as selling prices fall and demand wanes. But the values will suffer significantly if renters with no skin in the game let this neighborhood go to hell. If this administration intends to turn my neighborhood into undeclared section 8 housing, I'd rather see the homes sit vacant. Fannie Mae and Freddie Mac can just eat the losses they spawned, and President Obama can own it.
Originally posted on 08/13/2011 at ConservativeCompass.com