The Real Deal Miami

Should feds let foreclosures happen?

December 14, 2010 10:04PM

Professor Anthony Sanders of George Mason University says the mortgage
relief program that helps underwater borrowers, an initiative that began
in September, is misguided. The government should not be intervening in
the crisis, he says, because foreclosures are a requirement for
recovery. “The advantage of having foreclosures work their way through
is that home prices can adjust and make housing affordable once again,”
he said. “The more foreclosures we have, the more house prices will have
to decline.” [Sun
Sentinel]