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| My Two Cents. It seems to me that we need to protect these millions of home- "owners" from losing their homes. To simply prevent balloon mortgages from rising, is not the whole solution. First, we must separate mortgage "investors" from homeowners. "Investors" do not deserve homeowner protection. Then we must combat the "day late and a penny short" phenomenon. This is the scenario. Job reduction, or medical or automotive problem makes homeowner $100.00 short of a $1000.00 mortgage. Joseph and Suzie Homeowner are understandably upset. They try talking to the bank, but banks will not accept partial payment. Joseph and Suzie begin a downward spiral. Next month, the bank won't accept one payment, they want two. The stress of the situation begins to break down Joseph and Suzie's home life. They find communication difficult. The third month the bank won't accept two payments, they want 3. Suzie and Joe begin to act irrationally. Suzie housewife self-medicates by shopping. (bad idea) Meanwhile, Joseph Homeowner begins to drink, due to the tension. Then Forclosure begins. The hole gets deeper and deeper. Arrange for banks to accept timely partial payments, and to use the equity in the home, to make up some of the difference. Payment schedules can be extended. This is not a trivial problem. If we are to avoid 2 million homeless families, then our Government must step in. Governments are established to secure the rights of the governed. Not the profits of predatory investors. |