Day one – a week to solve the economy problems
John Adams is in Atlanta and is a local real estate investor, broker, speaker and radio personality. I don’t always agree with his take on things but I believe he has some great information and I got to hear him speak last week.
He talked about solving our economy problems in one week and this is day one of a ‘plan’.
1. Put a moratorium on foreclosures.
My first thought about that is he’s wrong. Let’s get on with it and get it over with but as I understood a few ‘adjustments’ to the proposal I think it might be a good idea.
If the home owner wants to stay in the house and after a rocky road has regained stable footing in the job market, why not let them do a sensible loan modification. Maybe a lower interest rate or moving the arrears to the back of the loan and she gets a ‘do over’. The moratorium would be applied only to owner occupied, not investment property. The moratorium would be applied only if the house is still occupied. If the owner abandoned it then the bank can do what they want to get it on the market.
If the owner can’t afford the house and they have tried to do a loan mod and can’t then the bank should be able to take it back and we all start down the road to recovery. The circumstances might make short sale an option but that process has to be made more streamlined. That is for another day and another article but it could be an option for some.
As an aside, I have helped several folks do short sales and it can be a great thing in the right situation. It is a lot of work and you have to be willing to cooperate fully but the result can be the avoidance of foreclosure, less damage to your credit score and a shorter road to recovery. If you know someone that could use some help or just has questions please call me and we’ll do all we can.
OK, that’s day one. Day two is coming. Stay tuned. If you want to do a little homework then ask yourself ‘Who is Garn Saint Germain’?
Thanks for listening,
Jerry Robertson
678-231-1578 Cell
Good stuff!