Solving the Foreclosure Crisis

Scared, and depressed. These two emotions are the top emotions felt by over two-thirds of all people that are going through the foreclosure process. Oddly enough, these are the same two emotions felt in a time of confusion or disarray. Scanning the headlines, one can discover a vast amount of excuses of how the foreclosure crisis started, who is at fault, and the various plans and bailouts put in place that were meant to keep America from going under. When a home is foreclosed, everyone suffers. The banks lose money, the homeowners lose their home, and even the neighbors lose out by decreased property values.

It has often been said, “An idea without a plan is just a wish”. We experienced this first hand this past year with the Government Bailout Program for the banks. Our Government gave away billions of dollars in emergency loans to banks and large companies, with the sole intention of enticing the American public to go out and buy and use new loans to do it. Because there was no plan in place, the bailout money ended up becoming a huge savings account and safety net for many large banks as they simply saved and stored the bailout money vs. lending it out. It was further rubbed into the faces of the American public when AIG spent over $400,000.00 on a spa retreat less than one week after they received 85 billion tax dollars to prevent the company from creating chaos across the financial globe. As America rose in uproar against this brazen act of ignorance, it became perfectly clear that there were no real plans in place on the regulation of this bailout money and example after example was made public.

Any college professor would say “Education is the key to success”. Nothing could be truer when it comes to devel...

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...y to the lender to bring the mortgage current. The loan will not be paid directly to the homebuyer. The homebuyer must also have had the existing mortgage, and have lived in the home the loan is for, for at least the 3 consecutive years prior to the loan application. Since most foreclosures occur with in the first 3 years, this rule will help ensure that the homeowner can afford their home. The minimum FICO score for the loan will be 540.

This program does in fact benefit everyone, the lenders, the home buyers, and even the government. Education ensures that every homebuyer under this guarantee program knows the ins and outs of what they’re getting themselves into and provides for a better preparedness than any other program that currently exists. This program provides assistance to the entire public while still ensuring that they become educated.