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"The people who cast the votes don't decide an election; the people who COUNT the votes do." -- Joseph Stalin

Tuesday, September 23, 2008

A Solution for American Homeowners


An aide to Rep. Barney Frank, the chairman of the House Financial Services Committee, said negotiators had agreement on an oversight board and some form of help for homeowners facing foreclosure. The aide said the negotiators were "not there yet" on whether the government could take a stake in the companies it help.

"Some kind of help?" I have some suggestions. Let's take it from the top. Lenders over-inflated property values through their network of appraisers, brokers, agents, etc. Then they made loans, helocs, and credit lines available to everyone knowing full well that most borrowers were unable to take on such debt. Next, they cut off the credit lines and raised existing interest rates to outrageous and usurious rates such as 29.99%!

Through such cannibalistic lenders such as Litton Loans, Countrywide, Ameriquest, and US Bank, they then unleashed a concerted effort to force homeowners into default and eventual foreclosure and bankruptcy. Millions of hard working Americans watched helplessly as their "equity" disappeared right before their eyes. Now, those residential properties are "owned? by the very lenders we are expected to bail out. What a scam! Want confirmation? Check out the complaints against these companies on the Ripoff Report.

Here is my suggestion for the bailout: Give every homeowner in America the option of continuing with their existing loan, or of receiving an appraisal for the home's current value. Said appraisal MUST be based upon realistic home values such as provided on Zillow. Then, a new loan at 90% of that value, at a fixed rate of 1% should be provided without any costs. This is the price Lenders must pay in exchange for the people of America bailing them out. A small price to pay.

For renters who were displace through foreclosure through no fault of their own, they should be paid for lost security deposits.

If they don't like it, tough.  They stripped America of its equity and need to pay to return American homeowners to some kind of normalcy.  It wasn't the people of America who have destroyed this economy, it is the greedy corporate bosses and political insiders and lobbyists.  It is definitely TIME FOR CHANGE.

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1 comment:

  1. Amen. The companies who made the bad loans now own the properties they have stolen and want us to bail them out? Screw George Bush. Screw John McCain. My father always told me that if you wanted to live like a Democrat, vote Republican, because they'll be sure to take your money so that you have none. He was right.


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