Let Foreclosures Happen

By Steven Anfield
Benzinga Staff Writer
November 04, 2011 11:07 AM

Housing market guru Logan Mohtashami told Benzinga that he does not believe President Obama’s housing plan will help to cure America’s housing problems.

“There simply aren’t enough qualified home buyers to take on the mass of inventory we have in this country,” Mohtashami said.

Mohtashami believes that, while a sound refinancing plan would put more money into the economy by effectively giving more disposable income to those already able to pay their mortgage, but it will not solve the overall housing problem.

Unfortunately, he does not think there is one answer to the problem. “There is no real financial problem solving idea out there,” he said. “We just have to let the foreclosure process happen. People just ca not afford their homes.”

Mohtashami accepts that the concept of letting foreclosures happen is not popular, and it will not be heard much during an election period. “Loans have been created that, even when people have jobs, they cannot afford,” he said. “The foreclosure process should take seven months but it is taking a lot longer as it gets delayed. That does not really help at all. It’s not popular, and that is the problem when politics comes into it. But it is the tough reality. This is what happens when debt exceeds common sense.”

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