Steps to Solving the Foreclosure Crisis and Preventing a Future Recurrence

The foreclosure crisis is the worst seen by the United States in all of its history. The fact that thousands of people have lost their homes is a sobering thought. There are several reasons why foreclosures happen and they all point toward the mortgage companies, banks, the economy and the Federal Government. Still, finger pointing and blaming is not the solution. The time has come not only to fix the problem immediately, but also to provide safeguards to prevent it from happening again. This requires nothing less than a strong hand from the government.

To solve the foreclosure crisis right now, the government needs to climb in the mortgage wagon and take the reins. Companies such as Countrywide and others took advantage of weak situation in our nation's time of crisis and exploited it to their advantage. The government needs to establish a new watchdog: The Department of National Mortgage Regulation (under the FHA). Yes, nobody likes big government and intervention, but we cannot trust mortgage entities to do it for us. This new government department will do the following: take over all pressing mortgage issues, including the problems identified by the FHA such as rising foreclosures and unacceptable practices, and freeze all mortgage payments to people who can prove that their situation is now near foreclosure, already in process, or occurred during the past 6 months. People who have foreclosed over the last 6 months can return to their homes (assuming the homes have not been sold and occupied). For all of these people, the new department will evaluate their cases on an individual basis. While this is occurring, the mortgage companies will absorb the mortgage fees and none will be paid to them for the time being, even by thos...

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... of their mortgage will not rise over $160,000. Instead, as they make payments, it will drop. As time goes by, their debt ratio will decrease, and then they can use it for other things.

I understand that people do not like government controlling their lives. This is not exactly being controlled. It is government intervention into a national crisis that stops foreclosures and prevents it from happening again. People (including our senators and congressmen) are set upon the old, fixed ways of doing business. Well, it doesn't work that way, anymore. It is time for change. Change is good if it benefits all of us equally. There are circumstances when change may favor one social group over another, but buying a house is a common issue, and transcends all social status. Everyone deserves to have their own home, sweet, home, without having to fear losing it. Thank you.