Efforts to Save Homes Lags Behind Economic Recovery
Here in New York and indeed nationwide, many homeowners that once prided themselves on securing their dream "to own" and felt safe and sound in their homes, now find their lives roughed up and fraying along the edges. It could be with your principal residence or you could be experiencing serious difficulties with your vacation home or rental properties.
We are all living in the "perfect storm". Homeowners across our nation borrowed and bought, and are now faced with the common dilemma that they cannot refinance their home mortgage. On November 12th, 2009 the New York Times editorial "More Foreclosures to Come" predicted that even by conservative estimates, another 2.4 million homes will be lost in 2010, while prices will fall another 10 percent or so.
Negative equity, job loss, valuation - all problems which have emerged since 2006 when the real estate market began to shake and rattle, now prevents homeowners from curing their defaults or lowering their interest rates. The mortgage loan process has evicted its previous "precious" customers and no longer functions for our neighbors, family and friends. So what now that we look at the winter season with" holes in our boots" and we can't get a new pair?
The appeal of loan modifications and defending against foreclosure actions must broaden. President's Obama's speeches of two years ago have faded to a shallow gray along with our hopes and homeownership dreams. Federal and State programs plus initiatives to help our mortgage defaults have fallen short of even our lowest expectations. If we had received even the slightest commitment and achieved our lowest goals, we would have seen huge success in the revitalization of our neighborhoods.
Modifications have tremendous benefits and show a striking return of balance to those families who have toiled to obtain a loan modification or defend a foreclosure action in the courts. The promising signs for homeowners from Washington and the frenzy of hope have taken a distant place in the race for economic recovery. Many can debate whether the screaming needs to restore our neighborhoods should be quieted by other national pressures.
But one lesson is simple - we need "new boots" and without loan modifications and defending foreclosure actions, there just aren't any other boots to buy.
