Foreclosure Fix
Foreclosure Fix
By Regis Sauger
We have read about this foreclosure epidemic now for almost two years. We have read about the Wall St debacle. Many articles have been written on the “securitization of mortgage notes”. The blogs, INTERNET and libraries are loaded with theories.
We have witnessed the emergence of the “short sale” scams. We have watched thousands of homeowners simply walk away from homes because they either cannot afford the payments or were so intimidated by the complexity of the court system.
I have seen lawyers, change course in the middle of the stream and flock to the foreclosure market, like hyenas feeding on a crippled water buffalo. Now, we see the emergence of so many blighted neighborhoods all over the country. I recently read about the plight of three of the very large cities in Michigan with empty homes because of the combination of the economy and foreclosures
In one of my earlier articles, I wrote about “who really owns your mortgage”? This latest government bailout brought the two political parties together for one reason. Keep violence off of Wall St. Now, we all know that when your mortgage note was put into that big basket with a lot of other mortgage notes and then was converted into an asset based trust: the note basically ceased to exist. That’s right. It no longer exists.
If, it did exist, then why don’t they simply surface? They cannot because the big boys would be convicted of “fraud “. So, here is a plan. Bizarre? I don’t know. Crazy? Maybe Possible? Yes. Here is the plan Because no one can produce the notes, then why not let the local governments, cities, counties take possession of these vacant home by eminent domain. The price that would be paid for these vacant homes would be market, BUT, the funds would be in escrow pending delivery of the original note. If, the note doesn’t surface, the city or municipality owns the home.Yup, simply take them. Who, may I ask is going to defend against this action? Will they have standing in court? I don’t think so. BUT, maybe, just maybe it will flush the real note holder out of hiding to protect his/their investment and they can then be slapped with the local “nuisance or littering” ordinances.
When the note holders cannot surface, the local governments can then hire the local artisans, craftsmen and citizens to bring these properties up to decent living conditions. Now, here he where everyone wins. The property is put into a rental-lease program and the potential homeowner MUST attend a credit educational program.
This would insure everyone that in one or two years, the homeowner can qualify for a mortgage, purchase the home and the local government recovers it money. What price would be put on the home? Well, the going price at the time of the signing of the lease, which would make it an incentive to get your credit in shape and buy that home.
How can these folks pay for these homes if they don’t have work? I don’t have a crystal ball. But, as these homes become occupied and taken out of inventory, new homes will be needed and perhaps over a period of a couple of years, we have reversed the cycle of decay. If, we do nothing, then the drain on the tax coffers becomes more acute. More money is spent because we still need fire protection, police and someone to drive around and tell us that those homes need the weeds cut.
If, we get these vacant home back on the tax rolls we will have accomplished a major feat. Now, lets just suppose that some sharp attorney shows up with the note. Big deal. The work done on the home is now a lien and enforceable so that the note holder cannot sell the home without satisfying the lien. Personally, I don’t think that many note holders will show up, because they don’t exist. There is another article on “what really happened on Wall St” and you can put “two and two” together.
Anybody got any better ideas? Write them down and let your local politicians hear about it. Time to get the “rats out of the house” because they have eaten all of the cheese. (the politicians and bankers). In, closing, just think about it for a minute. Who better to own these homes than the citizens, via their municipalities and maybe, just maybe something good will come out of this mess.
Regis Sauger is a licensed Mortgage Broker in Florida, an author, lecturer on credit awareness. He has conducted seminars for underwriters, attorneys, mortgage lenders, realtors and the general public.
Article Source: http://EzineArticles.com/?expert=Regis_Sauger
http://EzineArticles.com/?Foreclosure-Fix&id=1669009
