Theres many reasons why shit sucks in life, and a lot of it stems from human greed. This is not the sole issue in real estate, but it is a change from a few decades ago when you could get a home loan with no money down, without having to do a piggyback loan or go through all the great avenues we have today to purchase property.
Also its damn near impossible to get a loan if your struggling to get a good paying job and its not worth it for a bank to give you a loan less than 100k. Youre stuck with credit unions personal loans and saving money you dont have when living paycheck to paycheck.
I say this a lot but its all due to selfish human fucking nature. Not only are people unwilling to pay their debt so that there is a level of risk for any bank or institution, private or public, to issue a loan, but the banks themselves cant take the smallest amount of extra risk because they’re a business and just wont. This is their right, but in the grand scheme of things, these people are so rich it really doesn’t matter.
As much as I hate the banks, I hate the "I dont owe you shit mentality" our great society has. Poor people often dont deserve the handouts they request, because they cant plan ahead for the debt they get themselves into as well as they dont care that its someone elses money they are refusing to pay back, just because they are bitter and jealous from greed. If some of these people focused more energy in a financial goal or solution as they did just trying to be shady or simply take take take. Maybe they wouldnt be in their predicament their laziness caused. Not all people are like that, but in all honesty I believe most are.
The government needs to fill in the areas of greed and selfishness that are present in the banks who offer home loans. The amount of profit for the risk taken on low priced housing prevents the lower class from taking a 30 year fixed loan on a home with an affordable monthly payment and the room for family and others to share. The amount of properties able to be sold on the housing market would greatly boost the economy and reduce the waste of housing and land which is empty or constantly degrading its structural integrity due to lack of potential buyers, which is not from a lack of potential demand, but a presence of greed. If the government doesn’t offer a simpler program it could easily offer banks incentive, like a tax break, so that what was originally a plan to make government bigger, ended up succeeding but decreasing the jump by limiting government control, but conditioning altruism through motivation which appeals to the vulnerability of the big banks own selfish nature.
Now if you want an example of human behavior that has the appearance of good, just look at rich people. they donate to charities all the time for tax breaks. They donate to things like research for random X disease or cancer, which no one has any intention of actually curing, and if they did it would probably be kept under wraps until population control or money agenda was gone. I dont hold to this conspiracy theory because there is no evidence, but we've done it with mosquitos and malaria to maintain population control, and we make too much off cancer while preventing all the ridiculous reproduction. Why donate to something that will amount to no end for such a large donation. What a wasted "means" utilitarian everywhere would feel shame.
The richest people in the world could easily life a finger, and even start several businesses to produce jobs and opportunities if they had a single bit of patriotism in them, but no one wants to better the country, because every single person or damn near everyone in this world is selfish. Even the sympathetic and kind ones do it for their own social needs.
They could just as easily setup programs to not only help the economy but get the homeless a place to stay, that doesnt involve trying to find a shelter and a soup kitchen. They could also start their own charity giving small second chance loans to people in poverty who need a low cost of living for their low income. Not only would they get their money back eventually(or most of it) they would be putting money into the economy allowing the poor to spend more and the market to boom with some unseen demand. This will eventually raise the value of these properties to some degree blooming into a slight trend towards a sellers market for these people in the low class.
The government has their own programs but they treat it like any other place, they want to help but if you take one look at their offers, you just see a bunch of red tape people dont feel the motivation to even bother. how many people who make under 20k a year have a good credit score? Really?
People underestimate what a few changes in the housing market can do. Just think for instance all the potential work that will be available if many of these older properties are purchased.