Where is relief for responsibility?

There is a conspicuous absence in policy discussions about mortgage and foreclosures: Relief for responsibility.

Before the housing crisis, homeowners frequently bought houses with no money down and, in some cases, even walked away with a cash rebate. When they later faced foreclosure – a process that frequently takes two years or even longer – the homeowners continued to live in their homes without making ANY payments during this procedure therefore living for free for many, many months. Yet, most of the national focus has been on providing relief to these foreclosed former homeowners who most will admit that should never have been qualified to borrow these funds.

Meanwhile, responsible homeowners whose values have decreased, in part to the huge numbers of foreclosures reducing these values are struggling to make their payments because they can’t get qualified for the current lower interest rates– are footing the bill. We are rewarding the cause of the problem and doing nothing to aid those who are paying their mortgages responsibly even though their rates are frequently double the current rates available.

In the real estate industry, like most businesses, we understand the importance of return on investment. Buyers and sellers expect their investment in a realtor to produce the best deal possible. Likewise, when marketing a property, our bottom line depends on investing in tools that efficiently produce the best results.

Taxpayers, like business owners, should measure the return on their investment and ask for relief for responsible homeowners who are struggling. To me, that’s a much safer investment.