A Few Thoughts On Home Foreclosures

Here are a few thoughts on the many proposals to address the increasing home foreclosure problems, provided by a former investor in considerable real estate,

• A majority of all homes in the United States have mortgages in excess of the market value.
  
• With the continuing decrease in the market value of houses, the number of houses with mortgages in excess of the market value will continue.
   
• In December 2008, it had been reported that one out of ten homes were either in foreclosure or at least one month behind in their payments. That number will be expected to increase with the huge number of job losses and economic downturn.
   
• Many home owners that have mortgages greater than the decreasing market value of the property will simply walk away rather than continue making payments.
   
• Any relief given to houses in foreclosure would have to come from great reduction in the amount of the mortgage balance, a reduction in the interest rates, and a reduction in the monthly payments.
   
• Most mortgages had been put into mortgage-backed securities, preventing the mortgage holding or servicing companies from changing the mortgage terms.
   
• Almost any relief would require that taxpayers pay the cost.
   
• Any reduction in the size of the mortgage, month payment, or interest would antagonize other home owners.
   
• There isn't enough money, borrowed in most cases from foreign countries, to cover the cost of such changes.
   
• The only, though painful, course is to allow the foreclosures to occur. The future of the United States' financial picture is very dark, and sure to result in one crisis after the other.
   
• Many people are to blame for these conditions. the same culture responsible for the present financial debacles as has been and will continue to be responsible for other tragedies, It is this culture that has made it so easy for a group of insiders to write 19 books on the subject.
   
• Cheers!