FHA..........FORGIVE & FORGET PROGRAM........President Obama please.....

We all know that the loan modification programs aren't working. They cannot work and were never designed to work....but that is another post. Consequently, foreclosures are here to stay, and will run their unnatural course leaving much destruction in their wake. How can you have a borrower who owes $400k on a home that is worth only $175k ever hope to catch-up or make sense out of the current investment they are in?

Real Estate has to correct itself and cannot be regulated. It runs on the principals of a ready willing and able buyer and seller to set values together with supply and demand to run profitably, efficiently and effectively. Interfering with this causes problems.....as we are now experiencing.....

The damage to the former borrower/homeowner is devastating. By this I mean that the credit scores and reports will now reflect a NEGATIVE for the next ten years. This will result in higher loan rates for some and no loans for others. Forget credit cards, purchasing of cars, appliances or at random shopping.......

The mental, emotional, psychological, spiritual and physical damage is here to stay and plays on the buying Psyche of the consumer at large. Happy people think differently than unhappy people. Take away hope from people and you get despair. If despair goes untreated, hopelessness kicks in. Hopelessness invites more crime and worsens the economic picture now as well as into the future.....

All this does is hurt Neighborhoods, Cities and the Nation as a whole. Do we really need more homeless, credit-less people who do not pay into the tax system? Of course not...........

Don't forget, even if prices correct over the years, many buyers will still feel alienated.

PROPOSED SOLUTION......PROPOSED SOLUTION......PROPOSED SOLUTION......PROPOSED SOLUTION

Home prices are so low that if people who were recently foreclosed upon were allowed to get FHA loans..... many would probably buy a house and make it a home......in a heart beat.

Lots of low income and middle class people got hurt this go around thanks in part to the banks and in part to the sub prime mess. THE RESULT: Values are down, credit is shot for the populations and we have taken out two responsible sectors out of the game. Even people who have employment who have been foreclosed on cannot play in the game anymore. Hundreds of thousands to millions of people will just sit out this next cycle who could have purchased. This hurts us all......

Forgive & forget......let them back into the game. Now, that is a program that would help everyone. It moves product, generates cash flows for a myriad of businesses, supports the selling and buying of Real Estate, aids in the market self-correcting, circumvents the free-falling foreclosure market and restores not only hope to families, but invites them to rejoin society and become homeowners which benefits everyone.......EVERYONE........

A good habit to have when describing a PROBLEM (or two) is to always have a solution to go with it. I have lambasted the banks, government, the economy and the greed of man in general in several of my blogs recently. So, in keeping with practicing what I preach, I offer my humble solution. I don't have all the answers, perhaps together, we can find them.

I submit this for your consideration and comments......................

PEOPLE FIRST...THEN BUSINESS

Richie Alan Naggar          Ran Right Realty       Riverside, Ca

Richie@RanRightRealty.com