I think the Rescue plan for individual homeowners should be an individual one because each situation is different. I am one of the foreclosure counselors here at the Chicago Urban League and for the question posed with possible solutions each of those solutions is good in different situations. A guaranteed fixed rate is a good solution for most people but it also depends on what that fixed rate is. And some people accumulate a lot of late fees depending on how behind they are so that is a good solution for some. A combination of a number of these suggestions along with more I believe will benefit most people and help them to get back on track.
Pamela Gilbert Housing Counselor Chicago Urban League 773-451-3601
I believe it is time that we re-educate ourselves and start thinking like business owners. The more we understand how money works, the better off we will be. Real Estate Investors are no different than you or I with some knowledge of creatively moving money around to make a profit. Instead of waiting to see what the government is going to do, I say lets do what the smart investors are doing. We need to continue to share infomation and help one another.
One of the ways this economy can revive itself is to make sure that consumers are properly educated. Many consumers have entered homeownership without receiving homebuyer education. The Woodstock Institute published a study that demonstrated the number of foreclosures where homebuyer education was received vs. the number of foreclosure for those who never received homebuyer education,the numbers were alarming, sending a very serious message to all of us.
Legislators should be in touch with their consitituents and vice versa making sure that lenders lend responsibly. Now picture this, The Federal Government using our tax dollars to rescue lenders from going belly up because in many cases they purchased bad loans from the secondary market. Mortgage brokers worked out deals utilizing "Creative Financing" tools;interest only, Yield Spread Premium, 80/20 loans, teaser rate loans with a prepayment attached to it, zero dollars down loans, it was a circus. These loans were offered to the First Time Homebuyer, what a travesty. Why, you ask would a lender purchase such products? Because the loans were offered to the low to mod income minority population thus helping lenders to satisfy its CRA (Community Reinvestment Act) stats, which requires lenders to reinvest in the community of which they do business and have issued loans. So in essence, these Lenders caused some of the mortgage crisis, and we, the tax payers are now rescuing them without legislation that would require them to work with homeowers facing foreclosure. Shame on the Federal Government.
Now understand that the current Adminstration has come up with some fantastic foreclosure rescue programs. Over 30% of AA were in crisis long before it was address as a crisis (The Chicago Reporter) when the crisis crossed over economical and socio boundaries, suddenly it was a CRISIS. since the previous administration appeared not to give a hoot about minority homeowners losing their homes, we do feel a sense of gratitude to President Obama and his administration for prioritizing the crisis.
However, I just wish that someone would have spoken to local area HUD Housing Counselors so that we could have advised them as to what was really needed, which is to mandate the lenders who agree to recieve bailout dollars to work with foreclosure victims in creating a truly affordable work-out plan/an affordable modification. The way to make the modificiation affordable is to use formulas based on the individual's ability to repay or restructure, principal reduction, rate reduction and yes even 40 year loans.
I realize I am all over the place, but this mortgage crisis just makes me crazy. HUD Housing Counselors working with the AG's office and the Illinois Dept. of Financial and Professional Regulations, IDFPR, have been crying foul since 2005 when we start seeing crazy loan products and suspicous looking documents, such as a seamstress stating she is making 98,000.00 a year and only being in the US for 1-2 years and does not understand english, but her contract was in english...really I can go on and on...When will someone start to solicit HUD Housing Counselors for imput when introducing laws for foreclosure rescue, we see the problems on a daily basis and have been seeing them for years and years, yet no one ever asked us what was needed to really rescue our clients.
Ok, I'm off my soap box for now.
Thank you Cheryle Jackson for caring enough to actually blog the problem of foreclosures on the NextTV program, this statement is the epitome of change we'd like to see. Thank you also for The Chicago Urban League providing the much needed Foreclosure counseling as well as the First Time Homebuyers seminars to teach us all how to avoid foreclosure by knowing how much home we can really afford prior to purchasing.
Mad As Hell !!!
MW just one of many frustrated HUD Housing Counselors.
I think the Rescue plan for individual homeowners should be an individual one because each situation is different. I am one of the foreclosure counselors here at the Chicago Urban League and for the question posed with possible solutions each of those solutions is good in different situations. A guaranteed fixed rate is a good solution for most people but it also depends on what that fixed rate is. And some people accumulate a lot of late fees depending on how behind they are so that is a good solution for some.
ReplyDeleteA combination of a number of these suggestions along with more I believe will benefit most people and help them to get back on track.
Pamela Gilbert
Housing Counselor
Chicago Urban League
773-451-3601
I believe it is time that we re-educate ourselves and start thinking like business owners. The more we understand how money works, the better off we will be. Real Estate Investors are no different than you or I with some knowledge of creatively moving money around to make a profit. Instead of waiting to see what the government is going to do, I say lets do what the smart investors are doing. We need to continue to share infomation and help one another.
ReplyDeleteRomona Myles
mylesmona40@gmail.com
One of the ways this economy can revive itself is to make sure that consumers are properly educated. Many consumers have entered homeownership without receiving homebuyer education. The Woodstock Institute published a study that demonstrated the number of foreclosures where homebuyer education was received vs. the number of foreclosure for those who never received homebuyer education,the numbers were alarming, sending a very serious message to all of us.
ReplyDeleteLegislators should be in touch with their consitituents and vice versa making sure that lenders lend responsibly. Now picture this, The Federal Government using our tax dollars to rescue lenders from going belly up because in many cases they purchased bad loans from the secondary market. Mortgage brokers worked out deals utilizing "Creative Financing" tools;interest only, Yield Spread Premium, 80/20 loans, teaser rate loans with a prepayment attached to it, zero dollars down loans, it was a circus. These loans were offered to the First Time Homebuyer, what a travesty. Why, you ask would a lender purchase such products? Because the loans were offered to the low to mod income minority population thus helping lenders to satisfy its CRA (Community Reinvestment Act) stats, which requires lenders to reinvest in the community of which they do business and have issued loans. So in essence, these Lenders caused some of the mortgage crisis, and we, the tax payers are now rescuing them without legislation that would require them to work with homeowers facing foreclosure. Shame on the Federal Government.
Now understand that the current Adminstration has come up with some fantastic foreclosure rescue programs. Over 30% of AA were in crisis long before it was address as a crisis (The Chicago Reporter) when the crisis crossed over economical and socio boundaries, suddenly it was a CRISIS. since the previous administration appeared not to give a hoot about minority homeowners losing their homes, we do feel a sense of gratitude to President Obama and his administration for prioritizing the crisis.
However, I just wish that someone would have spoken to local area HUD Housing Counselors so that we could have advised them as to what was really needed, which is to mandate the lenders who agree to recieve bailout dollars to work with foreclosure victims in creating a truly affordable work-out plan/an affordable modification. The way to make the modificiation affordable is to use formulas based on the individual's ability to repay or restructure, principal reduction, rate reduction and yes even 40 year loans.
I realize I am all over the place, but this mortgage crisis just makes me crazy. HUD Housing Counselors working with the AG's office and the Illinois Dept. of Financial and Professional Regulations, IDFPR, have been crying foul since 2005 when we start seeing crazy loan products and suspicous looking documents, such as a seamstress stating she is making 98,000.00 a year and only being in the US for 1-2 years and does not understand english, but her contract was in english...really I can go on and on...When will someone start to solicit HUD Housing Counselors for imput when introducing laws for foreclosure rescue, we see the problems on a daily basis and have been seeing them for years and years, yet no one ever asked us what was needed to really rescue our clients.
Ok, I'm off my soap box for now.
Thank you Cheryle Jackson for caring enough to actually blog the problem of foreclosures on the NextTV program, this statement is the epitome of change we'd like to see. Thank you also for The Chicago Urban League providing the much needed Foreclosure counseling as well as the First Time Homebuyers seminars to teach us all how to avoid foreclosure by knowing how much home we can really afford prior to purchasing.
Mad As Hell !!!
MW
just one of many frustrated HUD Housing Counselors.