Would a Nationwide Moratorium on Home Foreclosures help stabalize the Economy?
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Delay a Possibility or Inevitibility
A moratorium on foreclosures of a home. That would mean setting a precedent for the allowance of a grace period and incurring extra debt on a pre-existing debt.
I find this a interesting problem for the many concerned. It is a situation that requires a business (the bank or mortgage lender) to take a financial risk for a situation that may or may not improve.
I would suggest for the business itself. They make allowance for this IF the Lendee can provide solid assurance of a recovery plan to re-establish and maintain continued repayment of the debts.
The Lendee should provide a long term plan that will display a financial recovery method to ensure continued repayment of the debt. After all, nobody has to confine themselves to just one job.
It is a uncertain economic time for everybody. People should not be losing their homes and the government does have the authority to grant allowances of some sort to assist both parties. They were chosen by the people.
Today's society can be quite innovative and creative to solve problems if researched and given the opportunity to solve it from a different perspective.
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Comments
It is always good to toss a net out to see what kind of ideas you can gather. Sharing our perspectives allows for new ideas. :) your welcome and am sure you will you enjoy HP!
Should there not be a consequence for failing to pay a mortgage?
On the other hand, I don't know what US laws are on repossession in the first place - here an order must be made by a judge, and he has a discretion to suspend if there is a plan to pay the arrears.
There are consequences yes. People lose their home, credit rating, etc. I just think a grace period to allow for opportunity to recover could be implemented but is in the hands of the lender at the end of it all. Economically, there would be a dip but if a recovery plan is in place, then that dip would rise once again. Thanks LondonGirl. :)
laringo says:
12 months ago
Thank you for answering my request. You have made some good points, but I think the U.S. economy will continue to falter if the housing market continues to crumble. I have my own ideas as to what should be done, but I am not an economist; so any real viable solutions may still be possible. I certainly hope so.