Halting the Foreclosure Wave
The tsunami of home foreclosures continue and the situation will only get worse as job layoffs continue due to company closures and shutdowns. The proposed plans simply won’t work and homeowners know it.
The government plans to streamline loans especially Fannie Mae and Freddie Mac simply won’t work. I was discussing this last night with someone and here are the main reasons why.
Fannie Mae and Freddie Mac are but a small percentage of the loan issues.
A majority of the general mortgage potential foreclosures are due to loss of income.
Families that lose their jobs such as the towns in Ohio hit hard by the DHL shutdown or Michigan automaker layoffs which affect thousands won’t have anywhere to turn in the short term period.
There was a saying when I was a boy “you can’t get blood out of a turnip”. Restructuring mortgage loans means little to a family with NO income. They can’t pay a mortgage regardless of any percentage restructure provisions.
The foreclosure is then inevitable and that only serves to put another American family out on the street and another vacant home into the possession of a mortgage company or bank in an already soft and unstable housing market.
So here is what I proposed for what little it means and for the few financial gurus in the government and mortgage industry listening. If the family has lost income due to a company layoff offer them two avenues of relief:
A ) Deferral of all payments other than loan principle for a term of 12 months to give the family a chance to establish a new income position and to observe the status of economic recovery in this country. This would greatly reduce the financial demand on the family and give them a chance to recover from the layoffs.
B ) Deferral of all payments for 12 months to allow the family to use savings only for essentials like food, utilities and living expenses until they can establish new income. The mortgage would still exist, but readjustment would extend the terms to give these families a chance to breathe financially.
At the end of the 12 month period everyone involved would have a much better picture of where the country and the family are economically. Families would stay in their homes, foreclosures would be reduced, the housing market wouldn’t be flooded with properties and the American core consumer market would have the time to strengthen their position against this sudden downturn in the business, financial and job markets.
The government needs to focus on creating American jobs and strengthening the core consumer market that supports local businesses more than becoming a landlord through buying up mortgage and investment concerns.
It is also imperative that we keep American dollars and business in America.
Assembling products in the US that have been manufactured abroad simply puts our money in someone else’s pocket in the long term. Jobs need to be HERE even if the people must accept lower wages to subsidize the future growth of the company.
A lower wage is far better than a layoff and NO wage.
This is not a time to worry over padding corporate bottom line profits through outsourcing labor and parts to foreign countries. That is one process that has weakened the job structure in the past two decades.
This is a time if there ever has been one for corporate and worker unity and clear thinking on the issues and demands that affect the core consumer market.
These are the people that buy holiday gifts, eat out at restaurants and purchase the consumable commodities that power this country. These are the very people that purchase homes, vehicles and small to medium investments in the banking industry. These are the people with the core deposits in our banks.
Turn your back on them and the backbone of this country will be bent to the breaking point.
This with the SOCIAL BOOKMARKING CONSOLE 
