Challenged Homeowners Want No Part of Government Help

Challenged Homeowners Want No Part of Government Help

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No bailout for underwater homeowners.

Financially challenged homeowners want to be bailed out by the federal government, right? Judging by the news media, you’d think that everyone who is having trouble making ends meet and is in danger of losing their homes want to maintain entitlement programs designed to save these homes.

Two Polls

Well, a pair of polls conducted in May and July on behalf of Rasmussen Reports indicates thinking that is far different. The federal government’s Emergency Homeowners Loan Program is designed to help troubled homeowners, a program that was recently extended. However, 62 percent of people surveyed believe that such homeowners should sell their homes and buy a less expensive home. [1] This compares to just 25 percent of people surveyed who think that would be better for the government to help people make payments with the remaining 13 percent undecided.

Notably, the Rasmussen survey found that “only 34% of those who have missed a payment think the better option is for the government to provide them with financial assistance.” [2] This flies in the face of conventional wisdom which seems to indicate that underwater homeowners are expecting federal help.

Even in the face of continued home value declines, 70 percent of those surveyed believe that homeowners should sell and buy something cheaper, with just 21 percent thinking that government help should be made available.

National Debt

Why is this important? Because, as America’s politicians debate on tackling the national debt, entitlement programs are certain to be cut. Trillions of dollars of debt is weighing down our economy, threatening to eventually bring a Greek-style collapse, but one of far greater, even epic proportions. The run up of home prices since the late 1990s has reversed course, but most Americans prefer to let things settle naturally instead of getting the government involved.

Tomorrow represents the artificial deadline set by which the federal government may default. At least that is the contention of tea party advocates who insist that the debt limit should not be raised. Likely, some sort of political compromise will be reached, but that will do little to resolve the differences between Americans which continues to divide the country.

References

[1] Rasmussen Reports: 62% Say Troubled Homeowners Should Buy Cheaper Houses; July 24, 2011

[2] Rasmussen Reports: Financially Troubled Homeowners Say No to Government Bailout; July 28, 2011

[3] CNN: The Tea Party’s Big Moment; Jim Acosta and Erika Dimmler; July 27, 2011

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