- Jun 6, 2007
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At the present time, America has a huge number of foreclosed properties being offered for sale and time and again the American public hears about an investor beating out an individual (who wants to live in the property) for purchase of a foreclosed home because the investor comes in with an all cash bid. State and Federal governments aren't doing their job here their supposed to be working for individual Americans their highest priority should be looking out for the interests of American families not businesses or wealthy investors. This is an utter and outrageous disgrace that state and federal governments haven't enacted laws that facilitate and bring about individual Americans that are looking for a home to live in getting priority in buying foreclosed homes over businesses and individual investors buying these foreclosed homes as investments. State and Federal governments are missing an amazing and awesome opportunity here to help huge numbers of individual American families, these foreclosed properties are often sold at steep discounts to market value compared with non-foreclosed homes thus providing an opportunity for individual American families that would otherwise not be able to afford home ownership become home owners and/or providing a real opportunity to help individual American families save tens of thousands of dollars and quite possibly in some cases hundreds of thousands of dollars on the purchase of a home which buying foreclosed on homes would provide which would also provide stimulus to the economy through increased consumer spending! It is a terrible outcome that is transpiring here where investors and businesses buy these foreclosed properties and either immediately or after a few years when the housing market recovers flip the property for resale at enormously higher sale prices resulting in individual American families paying for these huge profits from these real estate investments. It is really an Alice in Wonderland situation occurring here, the system is supposed to work for the individual American families over business and investors not vice-versa! The American public should turn this matter into a big fight, politicians should lose their job over this issue; it is expected that before America recovers from the housing market collapse there will be another "four" million homes that will be sold through the foreclosure process across the country there is a real opportunity to do a tremendous amount of good for American families if the state and federal government would create a system that gives these individual families first crack at purchasing these homes with a financing system on par with that of the one that exists for purchase of non-foreclosed properties!
This systematic help for individual families buying foreclosed properties could be achieved in the following manner. By law prohibit sellers of foreclosure properties for nine months from when initially offered for sale from selling the property to businesses, investors or any individual that is not going to live in the property as his, her or their principle residence. By law, require sellers of foreclosed properties to get a home inspection of the foreclosed properties by a certified home inspector and require the sheriff or whatever government entity that runs the home foreclosure auctions to make these home inspection reports available on the internet, this way the prospective buyer of the foreclosed property knows the extent of the home construction work that is needed to be done on an individual property so that the buyer can live in it. By law, require banks and mortgage companies that sell a certain number of home mortgages in a state, the big mortgage providers, to have a program specifically set-up for people that want to buy foreclosure homes to live in. Such a bank or mortgage company would have to have a system that pre-approved borrowers for a certain amount of mortgage so that these borrowers when they go to the foreclosure auction to bid on a home know how much they can afford to pay, these banks and mortgage companies would have to have a system in place with the needed number and type of professionals that when a prospective buyers bid is accepted they can timely evaluate the bid price with the work that the foreclosed property will need to bring it up to acceptable quality and determine if the monies needed there fall within the prospective buyers pre-approved mortgage limit and these banks/mortgage companies will need to have a system where the seller of the foreclosed property can timely get the monies for the purchase and then the contractors that will do the work to fix the foreclosed properties will timely get the needed monies for the work they must do on the foreclosure properties. The big banks like Bank of America and Wells Fargo could readily set-up such a system that would work well for them and borrowers, the government just need to push them to set it up. It's called the "government doing its job"!
The other thing, the American public keeps hearing about the tug of war between government regulators and banks that handle home loan foreclosures and the ownership and foreclosure paper work disaster that has ensued the last couple of years and fine and penalties on these banks for their transgressions here. The media reports the regulators want $20 plus billion of fines on the banks the banks want $ 5 billion of fines. The banks want the fine money to be used to compensate debtors that have been wronged in the foreclosure process over the past couple of years and to give debtors in properties that will be foreclosed on in the future a few months of rent to help them with their housing needs post foreclosure, this would probably lessen the public relation hit to banks over this housing bubble burst which they largely created. Regulators would like the fine money to be used to help home owners that are struggling and are underwater that is the principle they owe on their mortgage is greater than the current market value of their home - reduce this outstanding principle; banks say if this course chosen it will just trigger a huge number of defaults for borrowers underwater looking for relief, a floodgates argument. All these insider players are not fully considering ordinary American peoples perspective on this whole matter, the Fed and the Treasury bailed the banks out with Tarp and all the Fed windows, the banks are fully guilty for the housing bubble that caused this crisis with their lax lending practices and securitization of home loans no matter how junky and how much money has the banking industry sucked from Uncle Sam trying to fix this home loan problem like sixty not six billion of Tarp money was used to entice banks and mortgage servicers to rework home mortgages - millions were supposed to be reworked less than a half-million ended up being so. The bottom line, the banks weasel days should be over, the fine should be at least $20 billion it can be stretched out over three or four years and a lot of this money should be used to reduce the principle on home owners that are underwater with their mortgage, use a lottery system for home owners to address the flood gate argument. Politicians who control regulators should remember this huge home mortgages underwater problem isn't going away, American voters are going to be clamoring for help in this area for years to come so politicians should heed the timeless wisdom of you can pay me now or pay me later but your going to pay me so your better off paying me now and make it easier on yourself!
This systematic help for individual families buying foreclosed properties could be achieved in the following manner. By law prohibit sellers of foreclosure properties for nine months from when initially offered for sale from selling the property to businesses, investors or any individual that is not going to live in the property as his, her or their principle residence. By law, require sellers of foreclosed properties to get a home inspection of the foreclosed properties by a certified home inspector and require the sheriff or whatever government entity that runs the home foreclosure auctions to make these home inspection reports available on the internet, this way the prospective buyer of the foreclosed property knows the extent of the home construction work that is needed to be done on an individual property so that the buyer can live in it. By law, require banks and mortgage companies that sell a certain number of home mortgages in a state, the big mortgage providers, to have a program specifically set-up for people that want to buy foreclosure homes to live in. Such a bank or mortgage company would have to have a system that pre-approved borrowers for a certain amount of mortgage so that these borrowers when they go to the foreclosure auction to bid on a home know how much they can afford to pay, these banks and mortgage companies would have to have a system in place with the needed number and type of professionals that when a prospective buyers bid is accepted they can timely evaluate the bid price with the work that the foreclosed property will need to bring it up to acceptable quality and determine if the monies needed there fall within the prospective buyers pre-approved mortgage limit and these banks/mortgage companies will need to have a system where the seller of the foreclosed property can timely get the monies for the purchase and then the contractors that will do the work to fix the foreclosed properties will timely get the needed monies for the work they must do on the foreclosure properties. The big banks like Bank of America and Wells Fargo could readily set-up such a system that would work well for them and borrowers, the government just need to push them to set it up. It's called the "government doing its job"!
The other thing, the American public keeps hearing about the tug of war between government regulators and banks that handle home loan foreclosures and the ownership and foreclosure paper work disaster that has ensued the last couple of years and fine and penalties on these banks for their transgressions here. The media reports the regulators want $20 plus billion of fines on the banks the banks want $ 5 billion of fines. The banks want the fine money to be used to compensate debtors that have been wronged in the foreclosure process over the past couple of years and to give debtors in properties that will be foreclosed on in the future a few months of rent to help them with their housing needs post foreclosure, this would probably lessen the public relation hit to banks over this housing bubble burst which they largely created. Regulators would like the fine money to be used to help home owners that are struggling and are underwater that is the principle they owe on their mortgage is greater than the current market value of their home - reduce this outstanding principle; banks say if this course chosen it will just trigger a huge number of defaults for borrowers underwater looking for relief, a floodgates argument. All these insider players are not fully considering ordinary American peoples perspective on this whole matter, the Fed and the Treasury bailed the banks out with Tarp and all the Fed windows, the banks are fully guilty for the housing bubble that caused this crisis with their lax lending practices and securitization of home loans no matter how junky and how much money has the banking industry sucked from Uncle Sam trying to fix this home loan problem like sixty not six billion of Tarp money was used to entice banks and mortgage servicers to rework home mortgages - millions were supposed to be reworked less than a half-million ended up being so. The bottom line, the banks weasel days should be over, the fine should be at least $20 billion it can be stretched out over three or four years and a lot of this money should be used to reduce the principle on home owners that are underwater with their mortgage, use a lottery system for home owners to address the flood gate argument. Politicians who control regulators should remember this huge home mortgages underwater problem isn't going away, American voters are going to be clamoring for help in this area for years to come so politicians should heed the timeless wisdom of you can pay me now or pay me later but your going to pay me so your better off paying me now and make it easier on yourself!
