There is currently a move in Congress to put a moratorium on all bank foreclosures. This is on heels of the recent government bailout of Freddie Mac and Fannie Mae. It seems to me that if the government can bail out these big companies that maybe, just maybe they could help the ordinary homeowner who has fallen on hard times.
However, there are many people who feel we shouldn't do this as their argument is "we are paying our mortgage and monthly bills on time, why should we help those who aren't paying their mortgage on time. I have mixed emotions about this.
There is an new program being developed by banks that is called workouts. This is where you sit down with your banker and workout terms to meet you monthly mortgage payment. This is a good idea, but the banks are clearly calling all the shots and John Q. Consumer has not much to say about how it is done. That being said, I believe if a workout or compromise is achieved, then the banks don't have to spend money on the foreclosure and carry the costs of maintaining the home, the neighborhood isn't losing value due to the foreclosure and the homeowner gets to remain in their home.
I for one would like to see the government help the aaverage citizen instead of bailing out the big companies.
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