oldsuretyguy

New Mortgage Bankruptcy Bill Does Not Address Real Problem

To save the American homeowner and make this current mortgage disaster fair, we need bold steps to be taken immediately such as....the gov. should freeze and consolidate all mortgages in place so that no single borrower is at an advantage measured against any another borrowers. Give the mortgage borrowers a three month deferral on their mortgage payment, add to the loan principal a max of three months past due sums, drop all mortgage interest to a max of 1 1/2% for five years and 2% for the remainder of the loan. All utilities would reduce their charges by 30% and eat any unpaid sums. All previously foreclosed properties would revert to the gov. until prior homeowners would be restored to their homes at the above terms and any remaining homes sold and proceeds split between the various mortgage lenders(investors). Then you would see a real and immediate economic shot in the arm for the recovery and for our sagging real estate values.
The current banking/lending system gets no sympathy if they come out the loser since they are lending with little or no risk carrying next to a zero reserves.They take in a dollar and loan it out times nine to ten times its value and make interest off every loan. Additionally, they can run to the Fed window for short-term funds after they make a loan - sell the risk and take a profit from interest, fees and commissions. The system is broken and the players have no incentive to see rule changes as long as mortgage lenders can act like brokers.