Many people want “Big Brother Government” to bail them out of the financial mess they created, but if they want “Big Brother’s” help; they need to be willing to do what “Big Brother” says. If you want to buy a house, you are going to need a job. This is one of the first things any bank will look at when processing a loan. If you do have a job, this means you have a paycheck and that paycheck probably has taxes being withheld. Taxes are a fact of life that most people have become accustomed to. It’s one of those facts that help keep our roads paved, our schools supplied with the necessary tools to educate, health and human service necessities, a defense system to maintain the freedom most people take for granted and other necessary expenditures our nation needs to keep the majority of it’s people feeling safe and healthy.
With the reality of taxes comes the reality that rarely does anyone receive a full 40-hour weeks pay. Due to payroll taxes and social security, we can safely say that approximately 15-20% is going to be taken off the very top before that check is even printed. People don’t generally argue with the payroll department over their taxes. They get their check after the government has gotten their part. This is a fact of life and it’s a fact that most working folks live with. I doubt anyone “loves” the idea of being told they are getting paid $10.00 an hour but in the back of their minds, they really know that $10.00 is actually closer to $8.00 an hour after taxes. They do, however realize that these taxes are necessary for our economy to survive. This same philosophy can be used for the foreclosure crisis.
If we want a home, we know we have to pay for it. The best way to make certain we can remain in our home is by having the mortgage amount set up similar to payroll taxes and automatically deducted from our paycheck. If the government requires this as one of their stipulations for being approved with an FHA loan, then the people who willingly accept the loan also need to abide by the terms set forth. When pay grades are adjusted, the taxes are adjusted, so then, can the mortgage deductions. By requiring the mortgage to be taken directly off the top of a paycheck in the same fashion as income taxes, we could eliminate several fees. These fees are the late fee penalties, the collection agency fees, attorney fees and other fees associated with being unable to pay your house note on time. We could also provide a lower interest rate that would be the same for all mortgage loans. For households with two incomes, they should have the choice for either both of their paychecks to be “taxed” or just one.
I mentioned this idea to a friend of mine and she reminded me that part of the reason we have a foreclosure crisis is because people have lost their jobs and therefore are unable to pay their mortgage. This problem can be helped by providing a one year clause within the terms of each 30-year mortgage. The one...