Are There Free Homes?
posted with permission from
http://sane-ramblings.blogspot.com/2010/10/are-there-free-homes.htmlThe deepening U.S. mortgage mess in which giant lenders were seizing thousands of homes without following the laws has led to all 50 state attorneys general to put a temporary freeze on foreclosures.
Doe this mean the owners now have free homes? Many people who couldn't make their mortgage payments also couldn't pay their property taxes, fire insurance or home maintenance. They've lived in their homes for free. As local communities couldn't collect those property taxes, they've had to layoff teachers, police and firefighters and cut back on other essential services.
But before you criticize those who have defaulted on their mortgages, property taxes, etc., in many cases these are people who have lost their jobs and are desperately looking for work. Others are suffering from horrific illnesses and no longer have health insurance.
Still others qualified under government relief programs for lower mortgage rates and partial mortgage forgiveness from lenders but often those lenders did not follow-up with them and instead put them in foreclosure.
As a real estate owner, last year I had a long time tenant with two children, who lost her job and was unable to find work. She never told us. Desperate, she packed her things and moved without first notifying us. But she left a note apologizing and explaining her dire circumstances as she moved in with family.
In response, we forgave the money she owed and sent her a note wishing her well, thanking her for having been such a good tenant.
This solution could work for these giant lenders as well, all of whom received massive bailouts and continue to get ultra-cheap money through the government squeezing interest rates to savers to nearly zero. They could hire and train enough people to process all these loans in good faith.
Many troubled homeowners are also far behind in car and credit card payments and will leave. They just want to be treated with respect. For those who could afford their homes if adjustments were made to their mortgages, make those adjustments! It's cheaper and easier than seizing the homes, renovating them and selling them at huge discounts to investors.
There are no free homes. But there are millions of people who need a helping hand and it is good business to give it to them.