Hillary on The Booker Show
Hillary Clinton called into The Booker Show on Q102 this morning. When asked about improving the economy she talked specifically about tackling the home foreclosure crisis by a moratorium on forecloses and a 5 year rate freeze. Click on Hillary to hear the interview which is posted on Booker's home page...
I have some serious concerns about these tactics to help the economy. It is unfair to lenders if they have a loan that doesn't perform. Maybe one solution is to create a new type of loan in these situations that gives borrowers relief and allows lenders the ability to still have a strong investment, either through tax breaks from the government or other methods. At the end of the day, it won't help the economy for banks to go out of business. What do you think about a rate freeze and moratorium on foreclosures?
posted by Allan Domb at
2:40 PM
1 Comments:
I'm a contractor and investor using only personal credit to finance my single point (just one residential single family home) rehabilitation project.
Purchased at a nearly illegal (would seem) rate two years ago self employment (in the housing market) and inability to sell (or to raise enough capital (ie more credit) to finish and have ready for sale (thereby recapturing all credit and purchase price, plus profit, if any)) has led me to the brink of foreclosure. I'm also having trouble with unsecured debt as that is my working capital until sale (per a normal economic climate).
Here's my position in response to your question:
As for the lending instutions, all i can say is that I believe this is another instance of a system needing changing, perhaps with consequence (both legal and civil) to the individuals responsible for the bankrupting of my business.
I can only imagine that I am not alone in my crisis and that the circumstances of the collectivity amount to a large and cumbersome, yet necessary, legal matter.
In my case, I would demonstrate that I have been essentially run out of business by having my working capital (which in a growing business (as a self-employed person the distinction between me as and individual and me as a business is very thin) shut off without the proper oversight and correct measures of protection.
The lenders are being offered corrective measures of protection. It is only legally and justly (even morally) reasonable that they should pass on that protection to the end user. To do less must surely be criminal.
Mandatory halt on all foreclosure activity is probably too adverse for the overall general situation, but reduction in rates and affordable payments, extensions of credit for business use (regardless of credit scores-you can imagine mine after missing a few payments) should be just good business.
I moratorium on using missed payments in a depressionary economic environment as derogatory to credit worthiness could perhaps solve the issue. nobody talks about the role of the CRA's lately (i realize it's been discussed in past times of crisis, although i'm not an expert).
if it requires some statute or mandate to effect good business, then so be it, after all, good business doesn't hurt business, by definition.
Great question, great topic.
http://twitter.com/jesatiu
the project during my rehabilition:
http://mypage.iu.edu/~jloop/1121grant.html
By
~!jesseloop, At
March 27, 2008 at 11:32 PM
Post a Comment
Subscribe to Post Comments [Atom]
<< Home