This is an open appeal to US Treasury Secretary Hank Paulson and US
Housing and Urban Development Secretary Alphonso Jackson. And all the
lenders who participated in Project Lifeline.

Stop procrastinating what must happen and happen now to save housing and the millions and millions of families who are experiencing this crisis. None of the programs the government has proposed to stave off the deepening housing crash will help.

What wont work:

Stopping all foreclosures for 30 days is not the solution.
Freezing mortgage rates is not the solution.
Easier financing from the FHA is not the solution.
Mailing checks to people…not the solution.

Why?

Simple, millions and millions of American homeowners are ‘upside down’ in their homes They owe more on their homes than they are worth. Its clear that this trend towards the devaluing of homes is going to continue.

Homeowners with adjusting mortgages can’t refinance when they are ‘upside down’.

No lender is going to do a mortgage on a home where there is negative equity.
We have yet to see the true onslaught of foreclosures. We have yet to see the onslaught of builders dumping their inventory. Last but not least we have yet to see home prices drop to the point where buyers will start re-entering the market in mass. Until that happens there will continue to be a massive worsening problem with housing. This problem if left unchecked will cause not only a recession in the US but a global recession as well.

Here Is The Only Solution To This Massive Problem.
Short Sales.

Lenders have to make the short sale process faster and easier. Lenders simply have to avoid the REO inventory. Its not possible that the lenders can afford to handle the sheer amount possible REOs.

They literally can’t afford to. They know this. Thats one of the reasons they are delaying the foreclosure process. In many parts of the US home owners are missing 3,6 and sometimes 12 payments before a NOD is even filed.

Now, before its too late the government has to motivate the lenders to do short sales. There has to be some sort of ‘Short Sale Fast Track’. When this happens the lenders will have to take some sort of loss. But, the loss to doing a short sale is far less expensive and damaging vs the foreclosure. Less damaging to the lenders and the homeowners.

Here is why:
1) When a foreclosure happens in a neighborhood its been proven that all area homes are devalued. If you think its bad now–just wait until all the ‘Foreclosure’ signs are in the yards of millions of homes for sale.

2) The average foreclosures costs a lender $50,000. That’s just in the processing and holding. Not the actual loss on the investment.

3) Doing short sales is far less damaging to the borrowers credit. The government and the lenders have to get their collective heads out of the sand now. These little Band-Aides that they are doing now won’t work.

Bottom line, the least damaging solution to this crisis is short sales. No question.

Free Instant Free Download of Tim and Julie Harris’s 7 Part Agent Short Sale Secrets Crash Course www.AgentShortSaleSecrets.com. Instant Free Download.