Forum Post: Mortgage Refinance to Minimize Foreclosure
Posted 13 years ago on Oct. 25, 2011, 12:09 p.m. EST by hadenough
(3)
This content is user submitted and not an official statement
Let’s face reality. If you do not have an income, refinancing your mortgage will not help. There must be, however, a way to stop foreclosures when income still exists but is reduced. Here’s one solution that I believe is fair and just to all parties.
The borrower has a moral and ethical obligation to pay back the money originally borrowed regardless of the current value of their home. It would be good business for the lender to work with the borrower to reach an agreement for an equitable way to repay the loan.
I believe I read somewhere that it costs about $75,000.00 to foreclose on a house. Why not work with the borrower to extend the number of payments at a significantly reduced interest rate that would allow the borrower to remain in their home. I believe this would be a win-win situation. The lender will still be repaid the principal amount borrowed; still receive interest income; avoid the cost of foreclosure; and, avoid the cost of maintaining a foreclosed property. Additionally, the municipality would continue to receive real-estate tax revenue and a family continues to have a place to live.
Let the markets correct themselves. It is the government who caused the housing bubble in the first place by giving mortgages to individuals who would not normally qualify for them. Additionally, they put pressure on the banking system to follow Fannie May/Mac examples. As a result there are millions out there who aren't talking responsiblity for their actions. To get the government involved again is foolish. I challenge you to name one government run program that is not bloated and is profitable? The market will correct itself if left alone. Sure, you and I may have to ride it out, but if our homes were really worth what we paid for them then they will regain their value. I see this as just the latest attempt to buy votes.
I pay my bills, too; - in full and on time. I understand how you feel.
Keep in mind, all those foreclosed homes are hurting every one of us. Do you want your house to lose even more value because the house next door, across the street or down/up the block is in foreclosure?
We need this fixed sooner rather then later.
I pay my bills, when do I get a break?
Rob you are right I to pay my bills. I get sick and tired when I hear these commercials about helping people with more than $X in credit card debt. I make choices to cover my expenses let them do the same. They got themselves in the situation let them get themselves out