American Homeowners to Pay the Price For Foreclosures, Loan Modifications, and Short Sales

I was just thinking about all of the billions, if not trillions of dollars that have gone into the economic stimulus package (bailout package). I think it is ironic that those innocent Americans who have lost jobs and homes over the last two years are out in the cold. Many did make stupid choices, some were victims of predatory lending, however; the fact of the matter is, they are all Americans. These are Americans who must now foot the bill for those who are being “bailed” out today. These people who have lost it all, (and still owe huge deficits in the form of deficiency judgments), must now pay the burden for those who are able to save their homes with loan modifications. Something just doesn’t feel right about that scenario.

If you do own a home and can afford to stay in it, then do! Just remember that as unfair as it may seem, you will help pay the shortfall on your neighbor’s foreclosure or short sale in the form of lower existing home values (yours), higher interest rates that will be forthcoming, and higher fees as well as increasing closing costs. In addition the tax burden on the US citizen will continue to climb as we go forward.

Loan Mods are a great alternative to foreclosure, but; someone does have to pay the bill. I believe that even those who have lost their homes deserve another chance to own again. I am making it a mission of mine to help those who have lost their homes find creative financing options, and; help those who are behind in payments avoid the devastation of foreclosure. We all deserve a second chance.

Short sales and loan modifications are two alternatives for the homeowner in distress. Another choice would be make owner financing available to your prospective buyer. Real estate attorneys and title or escrow companies should always be used when conducting a real estate transaction. A third party contract collection company should also be used in all owner financed transactions. Most third party sources such as banks and title companies handle the accounting functions for you on the monthly installment payments and most likely will track interest and amortization balances for you. They generally file the tax forms for interest payments annually. Creative financing and no qualifying owner finance programs are available all across America. Sources of financing are everywhere for those who know where to look. I want to make this perfectly clear: You can buy now!

Do not believe that total financial devastation looms around every corner. Our economy is adjusting as we speak. There are many ways that an economy recovers. It is just like a an accounting spreadsheet, it must balance at the end of the day.

I believe that the real problem will not be solved by merely throwing trillions of dollars into an American economy that is not willing to spend or lend. The stimulus package has taken the lifeblood of our future generations and thrown it at a huge problem. I do not believe that this will cure the current financial crisis of America. I believe the problem lies in the F.C.R.A. and the credit scoring methods.

The F.C.R.A. is the Fair Credit Reporting Act. I have been in the world of finance for over 25 years and have placed over 500 million dollars in auto and RV financing as well as many millions in real estate acquisitions and liquidation. America has had an issue with foreclosure and bankruptcies that are at an all time high. These individuals will be off the market for many years to come. Along with all the millions of others who have waited on the sidelines for 5-10 years waiting for bad credit to “fall off” so they can buy again. If any of them have credit issues while waiting for things to just drop off, they again are penalized for another 10 years. A person who falls into the trap of bad credit can ultimately receive a life sentence no matter how hard he or she works to try to reestablish. Many simply give up and never buy again.

I believe that if we were to reduce the reporting time for foreclosure to 4 years instead of 7 and bankruptcy to 6 years instead of 10 that many good Americans who are on the sidelines waiting for things to “fall off” their credit report will flock to the open markets and stimulate auto, RV, boat, and real estate. It costs nothing to revise the reporting act and it is obvious that the current FCRA has done nothing to protect lenders, investors, and the American public from bad debt.

My advice to the current administration is to look at new and fresh ideas that will wake this sleeping economic giant. This is our home, America, that I will always be proud of. Every American should hold their head up with pride, roll their sleeves up, and pitch in. Let’s prove to the world and our children that freedom is America, and America is FREEDOM.

I did run into some “do it yourself kits” for loan modification and short sales. They can be found at my site at http:http://www.localbailout.com Most are under $100.00. Let me know how they work for you or anyone that you recommend try them.

Leland Murray has been a real estate investor, appraiser, agent, and mortgage professional for over 25 years. He has also been a leading financial consultant, finance director, and owner of RV and automobile dealerships. He has place over a half a billion dollars in mortgage and vehicle loans in his vast career. More information is available such as “do it yourself Kits” for loan modifications as well as credit repair. This is the first of many articles being written regarding credit repair, credit file-building, loan modification, and complete series of automobile, rv, and boat articles relating to negotiable items in a transaction. In essence, a blueprint describing both the buyer and sellers negotiating skillsets will be addressed.

http://www.localbailout.com