I'm working on a solution
Posted by NJDave on January 31, 2009 at 07:51:34:In December I met with a former federal banking attorney with contacts in the FDIC, and on The Hill to discuss my fustration with the lending industry's lack of cooperation/lack of participation in helping to reduce foreclosure via loan modifications and short sales.
"Stonewalling" was the term I used.
He challeneged me to devise a program he would introduce to the new administration's Treasury Department.
My 501c3 advocacy (www.spoch.org) has devised a "HomeKeeper Turnkey Program" and seeks TARP funding either directly from the Fed or through the Federal Home Loan Bank system for the purchase of small, non performing pools of mortgages in my state of NJ, and for the individual purchase of non performing loans.
As owner of the loans, and not encumbered by corportate mandate for profit, I can unilaterally stop foreclosure proceedings, and modify loans for owner-occupants based loosely on the FDIC LM model... reduce principal balance up to 85% of the confirmed FMV, set/fix interest at 3%... extend terms, etc.
AND, using FHA203K criteria, facilitate needed repairs and implement Green Energy Initiatives... making the cost of keeping the home more affordable, too.
Property owners who do not wish to keep their homes due to divorce, chronic unemployment, relocation, incarceration, etc., may utilize a short sale, or DIL with the premisaes being conveyed to local non profit housing organizations for use in the affordable housing inventory....
We need programs like this across the USA to have immediate access to TARP funds... putting the $$$ on the ground where its needed. Not in already deep pockets, jumbo jets, or bonuses.
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