Our country is facing many economic crises and they all seem to be reaching the boiling point simultaneously. From housing to unemployment, many Main Street Americans are suffering from foreclosures and layoffs by the millions.
I have a possible solution that may kill three Main Street viruses in one fell swoop (foreclosures, unemployment and foreclosure scams). This suggestion does not involve working on our nation’s highways, bridges and streets in the middle of the night. And, if implemented, would help educate struggling homeowners to avoid financial difficulties in the future.
My idea is to put to work struggling, unemployed homeowners in consumer counseling centers. In their new jobs they would act as loan workout and debt counselors. These centers would double as job training facilities. Once the trainee completes a 3-4 month loan workout/counseling program, they would become certified HUD counselors with certificates in debt counseling and homeowner mentor ship and given full time jobs in their communities.
There is no better person to have this job, then one who has experienced the sleepless nights, stress and pain themselves. Many mortgage servicers are operated by uncaring employees who are led by even more uncaring management team. This “time honored formula” of mortgage servicing has resulted in millions of homeowner complaints and incomparable client dissatisfaction. This tired system is failing America’s homeowners in our present economic circumstances.
Training caring and compassionate counselors will also alleviate the foreclosure scams by mortgage brokers and real estate agents. Theses scammers are magnifying the crisis by offering incompetent counsel to Americans on the brink of financial collapse.
Another problem with the present “foreclosure consulting industry” is that many of the employees in these firms are the same, and now displaced, mortgage and real estate brokers that got us in to the mess we are in. I have seen many of these out of work mortgage and real estate brokers over the last year that claim they have changed and want to help people. I would venture to say that 95% of these people are full of $hit! I know because I have been burned by these creeps numerous times over the last year.
Based on my experience, I am to the point where I feel there is no room for them in consumer advocate industry. If 95% of these guys are bad, then I would say it is safe to tell that other “good 5%” to find a new career because the other 95% will ALWAYS define your industry.
How do I know if this will work?
I know because I actually employ two of the very first homeowners I helped to save their homes online almost two years ago. Andrew has been employed by me for the past year and is the ideal homeowner advocate. Cat Damiano, my full time forum moderator at www.LoanSafe.org, is unbelievably dedicated to the cause of homeowner advocacy as well.
These people know the pain and sleepless nights that homeowners go through and they DO NOT FORGET how they felt when they were going through the same thing. This experience is what effective foreclosure counselors need to go the extra mile and fight for every single homeowner!
I believe that in 6 short months, the Obama Administration can create 500,000-1 million jobs and save another 6 million homes over the next 2 years if this is done right.
Wow, that’s a pretty good and positive prediction you’ve got there. There’s so many opportunities right now despite the recession–people are just too scared to focus on the actual good things that are coming out of this situation. I’m confident that things will be better soon and jobs will be created soon enough as well.
I think that is a great idea for unemployed homeowners. Get that working asap.
For employed homeowners who will have to pay increases income taxes for generations, thanks to all of the bailouts to the financial sector, I think we need similar relief. It is unfair to make people pay for their homes AND to make them pay twice via these needed taxes which are sure to come.
Some type of relief needs to come to homeowners because homeowners are left holding the bad and are left to pay for the irresponsible acts of trades at AIG, Lehman Brothers, Merrill Lynch, and the rest of Wall Street.
Thanks so much Andrew and Imee. We all need to think of and work on simple solutions as we work on our problems simultaneously.
Main Street as sent hundreds of billions of dollars to Wall Street for the same loans that they are suffering from. Yet, when homeowners who happen to be paying their own bills get $75 billion, Wall Street, CNBC, Rick Santelli and all the well to do’s throw stones from their glass houses as they simultaneously cash their bail out checks.
Hopefully relief is coming or I suspect a revolution may be brewing if it doesn’t…Maybe it will be called the Main Street Revolution! One or the other is coming, sooner rather than later!
To add to Moe’s suggestion I say that the BANKS should be forced to use some of their bailout money to hire more employees in their loss mitigatuon departments. The average stressed out employee are handling over 30 files which has turned many of them into uncaring individuals. And while they are training the new employees do a wide spread interest rate of 3 percent for everyone for a year so that those who can afford their current interest rates can now either pay down bills or put more money in savings which will then help the credit market which then will help businesses stay in business therefore keep their employees vs laying them off.
Summary – banks hire more employees, bring the mortgage interest rates to 3 percent for everyone for 1 year = solve emplyment,credit, housing crisis, and is fair to homeowners/taxpayers who were and are responsible.
Taunee English
well i agree but the thing that kills me is we have a president spends our money on a vehicle to protect his ass and i have a mortage with vanderbilt in maryville tn. whom i just tried to drop my interest rate down to where my payments would be 700.00 instead of 868.00 and all they would do was 98.00 and i as well as all americans and a dag on mort. company is getting 9.25 if obama was any count he would make all these mort. company drop rate to 5 per. on all future and existing mort. would sure help ecomomy,bet he doesn’t worry if he has a place to lay his head at night or as they say rich gets richer poor gets poorer and obama hasn’t done anything for our class of people.bet he won’t get elected again even with his own race.
Dear Moe Bedard,
Congratulations!. You have identified the problem and suggested right solution. The goverment has asked same people who originally created it. The performance so far from many banks on loan modification is very poor. Home owner is struggling to get their loan modified. Do you have any suggestion how to get your idea implimented? Govt. may not do anything. I have some plan and wants to discuss with you. Is it possible to contact you?
Bob
Hello Bob!
Geez, I just reread this post and there are so many grammatical errors that it is ridiculous. That’s what I get for being in a hurry and having no editor. Oh well…. I am glad you found this article useful. The best way to contact me is by email. Moe@loansafe.org or call 888-516-1116