Oct 16 2008
Both Candidates Misguided When Foreclosures Concerned
You can take it directly from a foreclosure attorney: neither John McCain’s plan to buy up all of the “bad loans” nor Barack Obama’s plan to enforce a nationwide freeze on all foreclosures will help this country. In fact, both plans will hurts us immensely.
The Federal government cannot buy up the bad loans because that will give the banks a blank check to write more bad loans. It will also be a bad investment for the taxpayers since the government will be using taxpayer money to purchase homes that are extremely overvalued, and continue to decrease in value, so that when the government tries to sell or negotiate these loans, there will be no chance of taxpayers recouping the money spent.
The Federal government cannot put a mandatory freeze on all foreclosures because over 70 percent of the houses currently in foreclosure are vacant and the properties will continue to erode. Property values of the homeowners that a current with their mortgage will decrease as the properties surrounding them remain vacant. The other impact to a 90 day freeze on foreclosures is that the banks, already barely keeping their heads above water, will fail because they cannot collect on the loans already issued. This will force further economic collapse as there will be no lending for houses, cars, or small businesses. The nation cannot run without a healthy banking system.
Neither of the candidates have a viable plan for fixing the foreclosure problem facing the country today. The only way to protect yourself from foreclosure is to use the legal system to your benefit and negotiate a modification of your loan with the bank. This will save the individual homeowner and the national economy as a whole. Learn more about how to accomplish this goal by reading the eBook available at www.ForeclosureDefenseSecrets.com.
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Peter Quinn