For the life of me, I don't understand why banks don't do exactly what you are talking about- do whatever it takes to keep people in their homes. They are losing so much more in the long run with foreclosures that, many (not all) of which could be "re-tooled" and the bank could break even. So many of the people in foreclosure situations do whatever it takes to get back on track with a reduced house payment because they can see the light at the end of the tunnel. Now, they have to be re-employed, if the main reason they are in this situation is due to job loss, but many people do and will continue to take jobs at less pay in order to save their homes. Eventually, they most likely will either go back to the areas of prior employment or re-train to get ahead in an employment areas that show better promise of a future.
My main thoughts on this actually further than the foreclosure and to the cumulative effects of how seriously the great numbers of foreclosures impact so much more in an already weak economy.
If I had the "magic wand" of forecloserdom, it would be my choice to to put something together for mortgagees that in the end, helps stabilize our economy. In the long run, this stabilization is imperative.
Obviously, I am not an economist! However, there is such a domino-effect when one economic hardship triggers another and when such large numbers of people are having these difficulties at the same time.
Quote:
Originally Posted by JAGG
We wouldn't be having the debates about, what is personal responsibility, and what is the responsibility of the Gov. if banks would work with their customers .
I always wonder why banks won't work with people in things like not being able to pay their mortgage. If the banks would be more flexible we wouldn't need to set up gov. programs with tax payers money to pay someones mortgage for them.
I know they are a financial institution in business with the purpose of making money. They lose alot of money when a house goes into foreclosure. You would think they would do everything they could to prevent losing so much money everytime. Yet if you fail to make a house payment 3 months in a row (this maybe only in Oklahoma, each state may have different laws) the banks starts automatic foreclosure proceedures. No other option is considered or offered. As if this is the only way . They lose a boat load of money,and the former owner loses . It would be smarter on their part to offer something like, freezing the loan payment for 6 months, and just extending the life of the loan by 6 months. That would give the person time to get back on their feet, or sell the house or find a cheaper place to live,and rent that house out. It would be alot cheaper for the bank to not have a payment for 6 months than it would be to foreclose. That's just one idea. I could think of a hundred.
Of course some things are mandatory and necessary that the gov. handle, and have programs set up for. I don't want everything to be tossed on the gov. shoulders all the time. I want the people to be the answer . I want smaller gov. less taxes and more money for us in our wallets. Less rules, less people breathing down our backs, watching our every move. The more we look to the gov. the more programs they design, the more taxes they need to run the programs. Exactly what I don't want.
We want the gov. to dictate some sort of heath care that's affordable to everyone. That doesn't fix the problem. The hospitals will still be able to overcharge us, pharmaceutical companies will still rip us off , doctors will still over charge. What we really need is the judicial branch of gov. to call the pharmaceutical companies in and investigate why
they are charging 90 dollars a pill when it only costs them 15 cents to produce the pill. Change the laws on generic drugs . Stop allowing them to charge an astronomical amount for something they produce for pennies.
Call the hospital administrators in investigate why they have been over charging people for 70 years. And the same with doctors.
First we need to hold the people who are responsible for the root of the problems accountable, and square them away, so they are taking personal responsiblity for their actions, then set up whatever needs to be done to bridge any existing gaps in the system.
|