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Alexander: US Government Should Protect Homeowners
by Stewart A. Alexander
05 Sep 2007
Stewart A. Alexander, a presidential hopeful with Peace and Freedom Party and Social Party USA, says President Bush and Congress could do more to protect homeowners during this nationwide home mortgage crisis. Alexander has ruled out a federal bail-out of mortgage lenders and believes homeowners need federal protection; he is introducing several steps to ease this national crisis.
Stewart A. Alexander for President
Peace and Freedom Party
Socialist Party USA
September 4, 2007
President Bush recently made it clear that there will be no comprehensive federal program to aid the millions of Americans that are facing foreclosure or have lost their homes. Stewart A. Alexander, a presidential hopeful with Peace and Freedom Party and Social Party USA, says Congress and the president could do more to protect homeowners during this nationwide home mortgage crisis.
US foreclosures have reached near epidemic levels and have touched every corner of the nation. The crisis has hit big cities and small communities; in some communities the foreclosures have hit doubles digits within the past two years. Hit the hardest are cities like Detroit, Cleveland and Las Vegas with many of the sub-prime mortgages being delinquent or are in foreclosure. In California homeowners in San Bernardino, Riverside, Temecula, Stockton, Sacramento and Los Angeles are struggling to hold onto their homes.
In 2006 there were 1.26 million foreclosure filings including defaults notices nationwide; however according to recent data compiled by Realty Trac, the number of foreclosures for 2007 are expected to climb above 2 million.
The home mortgage crisis has hit America’s working class at all income levels and millions of Americans are losing their investments due to risky loans and, in many cases, due to shady lending practices.
During the period from 2004 through 2006 many homeowners took unnecessary risk when lending standards were relaxed; during that period many mortgage providers made bad deals and many homeowners could only see the dangling carrot.
Stewart Alexander has ruled out a federal bail-out of mortgage lenders and believes homeowners need federal protection. Alexander is introducing several steps to ease this national crisis.
First: The federal government must eliminate the balloon payment loans that will threaten the well-being and financial security of millions of American homeowners. Congress must act now to freeze homeowners from being evicted; nearly 3 million will lose their homes this coming year when they are unable to pay increased payments or are unable to refinance.
Second: Homeowners that have been in their homes for less than 36 months will be allowed to vacate their home with a small reimbursement fee, from the mortgage lender, to provide funds for relocation if it can be determined, in a US Federal Court, that the loan was made under fraudulent conditions.
Third: If it is determined that the home loan was made fraudulently, the buyer’s credit will not indicate a bank foreclosure, to help restore the consumers credit rating.
Forth: Homeowners that have purchased homes over 3,500 square-feet, for investment and speculation, would not be protected under these proposed guidelines.
Fifth: The federal government could seize certain banks, mortgage companies and financial institutions that have relaxed professional standards that may have put homeowners and consumers at risk.
Recently Magie Phair, a long time State Central Committee Member with Peace and Freedom Party, provided some thoughts regarding the mortgage lending crisis. The following is Magie’s own words:
When I bought my first house, its 1,150 square-feet sold for $8300, came with a second mortgage from the builder/developer, was the cheapest on the market, and took a $600 down payment (which I borrowed) and the first mortgage was at 6.5 percent interest.
Now we should restructure FHA and federal loan policies to support primary loans on houses that are 1500 square-feet or less. Houses have been getting too big. Aaron Spelling had a house built that was 50,000 square-feet! I laughed when his new roof leaked!
Then we should do away with adjustable rate mortgages, always include the taxes and insurance in the mortgage payment and give written documentation of the expected mortgage costs before opening escrow.
Maybe considering city sprawl and too much concrete and blacktop contribute to water shortage and global warming, we should consider emphasizing condos or coops as first housing, requiring all buildings to include a diverse mix of sizes up to five bedrooms; making it easier to include children and older generations in the same home, with lower prices and interest rates. Plus, outdoor play spaces and picnic areas for each building, plus community rooms for exercise, study and entertainment. And Rental housing should be affordable, big enough, with tenant councils for all and community rooms. Magie Phair.
It’s time to bring common sense to the mortgage lending and building industry, and to create affordable housing.
For more information search the Web for: Stewart A. Alexander; Alexander Proposing Home Bank Leasing.
This work is in the public domain