Monday, September 17, 2007

My Proposal for a Foreclosure Avoidance Program

Here's an idea for how to avoid foreclosures
Published: Monday, 09/17/07
The Tennessean
The state or local government could develop a program that would help many homeowners avoid foreclosure without it being either a bailout of the lenders or a burden on the taxpayers.
(To continue Reading: Here's an Idea for how.... )

This article was published today in the Tennessean. I welcome feedback on this proposal. You may post your comments on this site or email me at
Also in the same issue of the Tennessean are these three articles of interest: Foreclosure issues affect all of us, by David Tarpley, managing attorney of the consumer/law section, Nashville office, Legal Aid Society of Middle Tennessee and the Cumberlands; Housing industry got away from its policies, by Eddie Latimer who runs Affordable Housing Resources Inc., a nonprofit housing corporation, and is chairman of the Tennessee Housing Development Agency; and The economy pays a price for irresponsible lending, The Tennessean editorial. You can read all of these at this link, see the center of the page. The Tennessean, Opinion.

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  1. While I applaud your effort to keep the bail out local and, if I read your artical right, it would be for someone in need (you give an example, "be used ... in case of a person who becomes disabled"), what we don't need is more government bail outs at any level.

    A question also arises as to where the seed money would come from. Most local governments don't have the money to invest for the length of time to turn over one house; add how many more houses??? Next thing you know, they'll be looking to the fed teat for suckel.

  2. Let me get this right... you’re a Republican arguing for a new government-controlled agency (department) that would compete, or potentially destroy, an existing sector of private enterprise. Your plan would pay the seller more than the private sector, would turn away a majority of applicants without compensation (after they get free counseling on how to avoid selling,) would give uncompensated money management counseling for those applicants who are actually accepted, and create a “rescue pool” that would assist the handicapped, among others.

    While I find your math questionable, after paying for all those uncompensated counselers, their office space, telephones, workers comp, etc., it looks like half of that $26,000 could be needed just to cover overhead. But that would still leave a program that would/could feasibly be self-funding and a benefit to many, with the only losers in this plan being seedy developers, greedy real estate brokers and those politicans, generally Republican, who won’t get as much from those characters in campaign payoffs... err... donations. Your plan seems logical and sustainable so, the obvious question is, why do you call yourself a Republican?