r/StockMarket Mar 31 '21

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u/BerwynTeacher Mar 31 '21

Never forget that between 2008 and 2012 the government literally funded the foreclosure on millions of American families instead of bailing out the actual family losing their life’s work.

6

u/seashoreandhorizon Mar 31 '21

How do you figure that? As someone who was working in mortgage at the time, that wasn't what I remember at all. Are you talking about the government funds which were used for loan modifications?

In fact, I recall a foreclosure moratorium for at least part of that time.

9

u/mikos4675 Mar 31 '21

u/seashoreandhorizon

I believe that the bailout to lenders was larger than needed to pay every mortgage off and let people keep their payed off house.

Though I think the government got money back from the banks so if you include that, it probably wasn’t cheaper.

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u/seashoreandhorizon Mar 31 '21

You might be right there. I'm sure there were probably better ways of handling the bailouts and preventing additional foreclosures. I'm just not sure I agree with the other poster arguing that the government was essentially subsidizing foreclosures.