“A New Direction, the winds of economic change are prompting fresh approaches to risk management,” this is the title and main topic for the December 2009 issue of the Internal Auditor magazine. In reviewing the history of our great nation, it is apparent that change comes with time. From the fight for independence during the American resolution to the booming technological invocations of the 21st century, change has been a fundamental component in the development of America. Of course, there were periods within our history that were not assenting, although they were conducive to the advancement of our nation. As human beings, our complex mental and physical structure permits us to create and evaluate avenues that may transition us out of our calamities. Thus, this is the time to find the “think tank” within ourselves and begin to formulate a strategy that will successfully take us in a new direction.
In awareness of the instability that the real estate industry is presently experiencing, I believe that I have developed a plan that can solve the foreclosure crisis. Inspiration for my plan was impacted by then Senator Barack Obama’s December 2009 speech, “A Call to Serve,” which called upon ordinary citizens of America to volunteer their time and talent toward the betterment of the country. Additional inspiration stems from the valiant efforts of the Obama Administration to stabilize the economy during this period of recession with initiatives like the TARP bill, which targeted middle-class America with enticing programs such as the Cash for Clunkers.
This new program could be called Help Homeowners Help Themselves (3HT). This plan would highlight an important step within the home buying process that makes it possible to achieve the “American Dream” of becoming a homeowner, which requires the ability and willingness to work. This program would be designed to assist struggling homeowners, giving them an opportunity to serve their community and clear some, if not all, of their arrears that have subjected them to the possibility of foreclosure. Each participating mortgagor, the person(s) currently in default status, will be granted small awards for his/her contribution to their local community by voluntarily aiding others. The combined total of this grant, allotted for each sub-recipient, would be limited to $25,000, as pre-determined by the Department of Labor (DOL).
To qualify for the program the person(s) must be 18 years if age and have an existing mortgage loan on their primary residence that is currently in default status. The qualifying participant must agree to reside at the current residence for a minimum of 5 years after he/she finishes the program, or be subject to penalties, as outlined in the Help for America’s Homeowners (H4H) program that was recently implemented to modify existing mortgage loans that are in jeopardy of foreclosing. Each eligible applicant must possess a willingness to serve their community and commit...