As more and more critics jump on the Obama and US Treasury Department HAMP or Home Affordable Modification Program, a pattern is emerging. State by State each government representative is being more and more critical. Foreclosure rates are being reported as continuing to climb across the country. Many states, such as California, are complaining of being in a “crisis mode.” However, there is a cost effective way to reduce the rates of foreclosures that is not being utilized, that being the power of state laws.
States such as Georgia, have always ranked high on the foreclosure radar. This February of 2010, it was reported on local news stations that the rate of foreclosure is up 27%. The problem lies within the laws of the state. Foreclosures are non-judical in Georgia. This means homes can be foreclosed upon after 90 days of delinquency and with the efficiency of a high speed train. In cases, such as Georgia, and others across the country, lawmakers need to address the fact that this housing crisis is unlike anything this country has experienced since The Great Depression. The near collapses of our nation’s banking system required the intervention of government. The crisis being experienced from state to state requires intervention by state and local government.
Instead of congressional hearings like the one done by Rep Barney Frank in 2009 or the one proposed by Congressman Ed Towns D-NY, which always accomplishes nothing except give a slap on the wrist to lenders and a freebie of expense reports to our government. State government needs to become more proactive in accomplishing something themselves. Just as “We The People”, realize that government will never throw all of us a lifesaver to stay afloat, governments and governors of each state needs to become the captains to save their crew.
If each state enacted its own laws to protect it residents and their American dream, then lenders would realize things need to change when it comes to modifying loans. If “particular” lenders are not doing enough to help homeowners and stabilize communities then they should not be allowed to 1)get the ability to “bid” loans for state government or government agencies in that state, 2)they should not receive ANY tax incentives or they should they should have them suspended 3)They should not receive building permits to expand their lending or banking facilities, 4)They should not be allowed to advertise on government run transportation, buildings, events or charities, 5) governments should advertise using the fees collected from existing lenders doing business in their state how many foreclosures these lenders have done and map it out and finally,6) laws need to be enacted to slow down the rate of foreclosures by making lenders have a tougher and MORE expensive foreclosure process.
Based on HAMP’s results thus far, if the United “States” continue to wait and wait and wait to be rescued and do not take action, then they deserve the financial crisis that will continue for years to come. As my mother always said, “We are all responsible for our actions.” In the case of state and local government, they are responsible for their lack of it.