Mortgage Crises -
Commentary from the Editor
"Then you will know the truth, and the truth will set you free"
Crises - The Solution
The answer to the mortgage crisis is simple.
The solution would help the economy and not modify the ultimate terms of the loans
for homeowners facing crisis. To solve the mortgage crises - the government would
only need to take over those loans where people have been layed off from work
and then based on their financial situation - the homeowner make a payment of
25%, 50% or 75% or the original mortgage payment for a two year period. The amount
not paid- would go to the end of loan - so when the home is eventually sold -
the mortgage would be paid in full based on the original terms of the contract.
If the home is never sold- the amount just goes to the end of the loan and you
would keep making payments until the loan is paid in full.
solves all issues... because no one is given better terms than another- you are
still held to the terms of your original contract and people would have assurance
that their payment would be affordable and fixed for a two year period. Your home
is your largest monthly expenditure and with it being reduced for a short fixed
period of time consumers would not fear and have money to spend.
you did not get layed off from work and you cannot make your payment- that is
where the free market and capitalism takes over. In that situation- it would be
up to your mortgage company to determine if they wanted to refinance or foreclose
if you were behind on your payments. However- the mortgage companies would benefit
if they would take the arrears of a homeowner in default and place it at the end
of the mortgage.
by Thomas George