Wednesday, October 21, 2020
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How to Fix the Foreclosure Mess (Because America Is Like Secretariat)

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Surely you have noticed that the new crisis du jour in the mass media is Foreclosures. It looks more and more as though we will not be able to re-start America's economy successfully until we resolve the foreclosure crisis. The early problem of defaults on the so-called sub-prime mortgages was merely a foothill leading to the Himalayas of today's foreclosures, where banks and primary investors stand to lose billions upon billions, one hundred percent of each of many of the loans they have made on residential real estate in the United States, and literally thousands upon thousands of otherwise normal middle class families are being put out on the street. Other homeowners, faced with rising mortgage payments on a home whose value has sunk well below the amount of their mortgage, (so they are "underwater") are taking a hike, walking away, performing a "strategic default."  What if there is a way for the banks and investors to "lose" a far smaller percentage, say no more than 30 to 60 percent, of the loan amounts, and at the same time keep those families in their homes---- without a new bailout or fancy government program?  There is.