This morning at 10:15 am EST Treasury Secretary Timothy Geithner outlined the Obama Administration's policy for economic recovery. Regarding the problems facing real estate, I like to boil the solutions down to something easy to understand. Here's the message I got. NO MORE WALKING AWAY. The Fed will do whatever it can to prevent foreclosures and to keep people in their homes. Walking Away from debt has been made too easy over the last 30 years but now the associated problems have become so deep, walking away is no long an option. Consider this... the more owners walk away, the more foreclosures hit the market. The more foreclosures hit the market, the lower the prices drop for the non-foreclosure home. The more prices drop for the non-foreclosure home, the more people feel stuck living in a home that is no longer worth what the owners perceive to be a fair price. This leads to depression and reduced spending because of uncertainty. Yet I am sure about one thing more than ever. Southern Oregon real estate in Rogue Valley communities like Grants Pass, Medford, Rogue River, Ashland, Jacksonville, Cave Junction remain intrinsic values because of their beauty, clean air, and clean water. And remember, they'll be No More Walking Away!
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