The Mortgage Crisis Could Affect You

More and more horror stories are coming out about this mortgage crisis. Like me, I am sure many of you are realizing it is getting worse before it gets better. This past week, I read a story that stated Washington Mutual would be closing offices and laying off 3,000 workers. Has anyone started thinking about all these employees that are being laid off? I can’t help but think about them because when you are laid off from a job, everything is now subject to your lack of receiving a paycheck – your mortgage, auto loan, auto insurance, groceries, etc. Some might have received a severance package that only lasts so long. Normally, a layoff is not something you plan for and people are caught unaware and end up in situations unprepared. I digress; let me return to the mortgage crisis.

Last week I briefly shared about the mortgage plan that was being unveiled. Remember, I made a comment about what happens to the people that are already delinquent, because they too need help! Hooray seems as if maybe someone out there in cyberspace or powers that be were thinking the same thing. I just read where the Senate passes bill addressing mortgage crisis. Before you begin doing cartwheels, do you realize the House passed a similar bill back in September? From what I can understand, the two chambers must now come to an agreement on the legislation before sending it to the White House for approval.

Let me share what this bill says that the senate has passed. This particular bill would allow the Federal Housing Administration to back refinanced loans for tens of thousands of borrowers who are delinquent on payments (okay, just for that statement alone I am doing cartwheels) because their mortgages are resetting to sharply higher rates from low initial “teaser” levels. I have always believed that when people are already delinquent, you need to help them see the light at the end of the tunnel and give them some hope to know that someone out there is concerned about what they are going through. Sure, you didn’t cause them to make the choices they made; however, how much better will it make a loan officer, mortgage company or even bank look to be a part of the solution. How many people will they tell that ABC Company helped me when I thought I was about to lose my house or when I had to make the choice between paying my mortgage or having Christmas for my family.

Do not think for one minute, that consumer that was facing these trials and tribulations would not tell everyone they know how ABC Company came to their aid. I personally would be shouting it from the rooftop telling everyone I knew. If I had a blog, I would be blogging about their help, customer service and everything. They potentially begin to receive so many referrals; they would not have to advertise. Will you be a part of the solution or aid the problem?

Taffy Wagner

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