FHA..........FORGIVE & FORGET PROGRAM........President Obama please.....

By
Real Estate Broker Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #00636943

We all know that the loan modification programs aren't working. They cannot work and were never designed to work....but that is another post. Consequently, foreclosures are here to stay, and will run their unnatural course leaving much destruction in their wake. How can you have a borrower who owes $400k on a home that is worth only $175k ever hope to catch-up or make sense out of the current investment they are in?

Real Estate has to correct itself and cannot be regulated. It runs on the principals of a ready willing and able buyer and seller to set values together with supply and demand to run profitably, efficiently and effectively. Interfering with this causes problems.....as we are now experiencing.....

The damage to the former borrower/homeowner is devastating. By this I mean that the credit scores and reports will now reflect a NEGATIVE for the next ten years. This will result in higher loan rates for some and no loans for others. Forget credit cards, purchasing of cars, appliances or at random shopping.......

The mental, emotional, psychological, spiritual and physical damage is here to stay and plays on the buying Psyche of the consumer at large. Happy people think differently than unhappy people. Take away hope from people and you get despair. If despair goes untreated, hopelessness kicks in. Hopelessness invites more crime and worsens the economic picture now as well as into the future.....

All this does is hurt Neighborhoods, Cities and the Nation as a whole. Do we really need more homeless, credit-less people who do not pay into the tax system? Of course not...........

Don't forget, even if prices correct over the years, many buyers will still feel alienated.

PROPOSED SOLUTION......PROPOSED SOLUTION......PROPOSED SOLUTION......PROPOSED SOLUTION

Home prices are so low that if people who were recently foreclosed upon were allowed to get FHA loans..... many would probably buy a house and make it a home......in a heart beat.

Lots of low income and middle class people got hurt this go around thanks in part to the banks and in part to the sub prime mess. THE RESULT: Values are down, credit is shot for the populations and we have taken out two responsible sectors out of the game. Even people who have employment who have been foreclosed on cannot play in the game anymore. Hundreds of thousands to millions of people will just sit out this next cycle who could have purchased. This hurts us all......

Forgive & forget......let them back into the game. Now, that is a program that would help everyone. It moves product, generates cash flows for a myriad of businesses, supports the selling and buying of Real Estate, aids in the market self-correcting, circumvents the free-falling foreclosure market and restores not only hope to families, but invites them to rejoin society and become homeowners which benefits everyone.......EVERYONE........

A good habit to have when describing a PROBLEM (or two) is to always have a solution to go with it. I have lambasted the banks, government, the economy and the greed of man in general in several of my blogs recently. So, in keeping with practicing what I preach, I offer my humble solution. I don't have all the answers, perhaps together, we can find them.

I submit this for your consideration and comments......................

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Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. Donald Bradbury 07/23/2010 09:03 PM
  2. Lori Liveston 07/24/2010 12:59 AM
  3. Tim Lorenz 07/24/2010 01:44 AM
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Topic:
ActiveRain Community
Location:
California
Tags:
loan modifications
fha
help homeowners
credit reports
foreclosure solutions
lenders
banks
real estate
obama

Comments 35 New Comment

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Rainmaker
1,115,453
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Jessica.......I am giving you a standing ovation....for the precision of the comment....

July 24, 2010 11:53 AM
Rainer
109,890
Jenna Dixon
Assoc Broker, NW Metro Atlanta
DRA Homes (Atlanta, GA)

US v. THEM...Your post about VOTING with our paychecks and our feet moves the power to the powerless.  When will we ever learn that while THEY have the money, it is due in large part because WE continue to give it to THEM. 

I am for the forgiveness program idea.  We do need a major shift in the social consciousness...a new understanding that MORE IS NOT ALWAYS BETTER and often results in a NET LESS!

July 24, 2010 05:33 PM
Rainmaker
1,115,453
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Jenna...the prestige of the post has increased due to your comments.......thank you

July 24, 2010 05:40 PM
Rainmaker
503,405
Russell Lewis
Broker,CLHMS,GRI
Realty Austin, Austin Texas Real Estate

Richie Thanks again for a post that stimulated discussion and I like your well put thoughts and ideas. Though we may not agree on every single issue, I doubt that we are all that different in the grand scheme of things. Have a good weekend!

Jessica - No offense taken and I completely agree that "greed and dishonesty are conditions of the soul" . Your point is well taken. Unfortunately, unregulated laissez faire capitalism has a tendency to bring out these conditions to the detriment of others over and over through history and in our case on a national level. It' crosses all party lines and ideology so no one is right all the time. Though I am one of those somewhat naive people who still believe that human beings on the whole are good, the reality is that there are always folks around who want to take advantage of others for personal gain. There will always be some sort of struggle for balance but it seems like the only time we find it is for a brief time when the pendulum is swinging past that midway point. ;-)

Tim I am not sure why you seem to take it on yourself to repeatedly attempt to call me out and  to convince me of your ideas. Frankly it makes my head hurt to try and think down on your level. Let's just agree that we have opposing opinions on nearly everything and just leave it at that!

 

July 25, 2010 11:49 AM
Rainmaker
1,115,453
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Russell...welcome back......I do not expect to agree with people, but I do require that we meet, greet and dialog so that we may come to understand each other and what we believe in. If we do agree, fine. If not, fine too! I am just happy for the interaction.......thank you my friend...

July 25, 2010 12:35 PM
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Rainmaker
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Richie Alan Naggar Author PEARLS SERIES of books

on LIFE and LOVE plus Real Estate too!
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