Monday, November 1, 2010

GUEST VIEWPOINT: Moratorium on foreclosures won’t solve the real problem

NOTE: While I do not agree with their premise that stopping foreclosures will be bad for the economy, I do APPLAUD their ability to do something that helps homeowners. Do you agree with his viewpoints? Seems contract law does not make much difference.

GUEST VIEWPOINT: Moratorium on foreclosures won’t solve the real problem: "Earlier this year, my company bought a home near Salem at a foreclosure auction. Rather than selling it to a third party, we sold it back to the family that owned it — the sales price was 56 percent of the original mortgage.

It wasn’t an isolated incident. We’ve made four similar sales. In each instance, we sold foreclosed homes back to the owners at a price that was a fraction of the balance of their mortgages.

This was a good result for the homeowners. More importantly, it was a solution — something that’s lacking in a housing market that is struggling to process a glut of foreclosures.

There needs to be a reality check. The idea that lenders are swooping in overnight to take away people’s homes is largely a myth. After not paying their monthly mortgage for months, homeowners understand what is coming long before their homes are sold at foreclosure auctio"

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