Now that there are one million foreclosures and a browned out lawn every ten houses in almost every subdivision, it’s time for the fancy-dan boys to come out of the woodwork. If it isn’t a reverse mortgage advertised by movie star Robert Wagner, it’s a quick-cash carnival character like the guy above who promises money now for your house regardless of its condition. In fact, they hope it is in poor condition so they can offer you less–not 50% of market value, not 30% or even 20% in many instances. “Would you take 10%?”
Many homes in America were bought at too high a price and are now in what we call a reverse mortgage situation. That means the house is worth less in today’s market than what is owed to the Mortgage company. There may be ten million of those around. Yet, experts tell us only five percent of the homes in America are in line for foreclosure. And that’s because five percent of the owners stopped paying their monthly mortgage bills.
And the U.S. Congress is poised to bail out these people with your tax dollars and mine? I think that is patently unfair to the rest of us.
I say, let the free market take care of those houses and those mortgages. In many cases, Michael Corbett said on Larry King the other night, 57 percent of those receiving foreclosure notices do nothing about it. They don’t care. They don’t even call the bank or mortgage company to see what they can do.
Banks don’t want their houses. They want those people to get in touch with their “workout” office and see if the mortgage and monthly payment can be lowered so the people can save their house. But 57 percent? Yes, those figures come from HUD, the Housing and Urban Development office. If 57 percent of the foreclosed people don’t care enough to even call the bank, why are we even considering our tax dollars helping them out. If they can’t help themselves, they are beyond help. Don White