Consumers need to take the loans back to the local lenders. We need to reenergize the local job markets. Penalties need to be put in place for companies that market and write subprime loans. A requirement needs to be implemented that forces future homeowners to take budgeting classes. Initiate severe penalties when a homeowner defaults on their loan obligation. Options need to be offered to homeowners currently trapped in an “underwater” mortgage. Consumer confidence needs to be restored and the bailout funds need to be revoked from the Freddie Mac and Fannie Mae corporations.
The first thing that needs to be done is localized loaning. The large corporations such as The Lending Tree need to localize their offices and staff. The local office would know the true value of a property and be involved in the community. Most insurance companies already have this practice in place; they can drive to a property to see the value, most insurance companies will refer you to their local representative for the simple fact he knows the community and real value of the property in question. This would also help stop the fraud from home appraisers who grossly overstate the value of a home. This would also keep the majority of the funds from mortgages in the community, not sent to Nevada or New York. This practice would also help stem fraud from repeat loans on the same property the local lenders could communicate to catch fraud earlier. Cases where fraud has been found the government needs to prosecute all parties involved. An example of this would be a property that has been purchased two of more times in a year and foreclosed withi...
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...nsible lending. Both sides of the lending process needs to be held responsible. We need to educate consumers to their options and in handling personal finances. Americans in general need to get back to the small town mentality and keep what assets they have in their local communities. This will inspire consumer confidence and reenergize the job markets, which in turn will increase home ownership. This will put a positive spin on the housing market instead of the downward spiral it has been in for the last few years. If these preventative steps and penalties are implemented than it is the belief of this Main Street mother of 4 that the housing crisis will resolve itself. However, I am a realist and with my understanding geo-political economic politics, I feel no changes that might cause distress to a politically linked contributor of means will be implemented.
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