The foreclosure crisis that we are currently facing is a very complex issue that affects everyone either directly or indirectly. The sub-prime meltdown that peaked in the Fall of 2008, has had a ripple effect of ramifications felt to the far corners of the planet. The world has become such a global market that no one can claim immunity to the devastation of the foreclosure crisis. The procedures for dealing with the foreclosures vary from state to state although Congress has enacted laws that have attempted to deal with this situation in a more uniform manner.
I feel that although the federal and state governments have diligently worked together in a concerted effort to relieve the devastation that has created the financial problems felt around the world, professional organizations should do more to help resolve the situation. I have a plan that could greatly enhance the resolution of the foreclosure crisis and speed up the timeline in this regard to help jump start the economic recovery that began about six months ago. Before detailing my plan, a discussion of the parameters of the foreclosure process and an objective analysis of the realistic financial criteria for each potential foreclosure should be identified.
Although many of the procedures to attempt to resolve the foreclosure crisis may be implemented for all foreclosures, each situation must be looked at on a case-by-case basis to determine the merit of the requested refinancing of the homes. Many of the individuals that have been caught in the financial crisis of foreclosure due to the unscrupulous procedures utilized by certain mortgage brokers to get the applications approved by any means possible are good people that got in over their heads based on the empty promises of lower interest rates and structured payments that they could afford. However, there is a certain group of individuals that purchased homes merely to “flip” such homes assuming that the bull market in the housing industry that peaked in 2005 had no end in sight. Further, there is a certain group of individuals that have only made a few payments on their homes with nothing down that have no intent of residing in such homes for a long period of time. My plan will be to only help those individuals that are worth helping due to the fact that the homes have sufficient equity and there is a realistic source of income to pay the mortgage payments after a restructuring plan has been put into place.
The Obama Administration commenced cracking down on the mortgage companies this month (December 2009) that are not doing enough to speed up the process of refinancing the loans facing foreclosure. The Treasury Department has been assigned the task of monitoring the seventy-one companies that are participating in the $75 billion dollar effort to end the foreclosure crisis. Evidently, the Treasury Department will start sending out three-person “SWAT Teams” to the eight largest companies to press them to move things...