The Current Mortgage Crisis Does Not Require Government Intervention

We do not need congressional intervention to resolve the current subprime mortgage fiasco. The marketplace can – and will – resolve these issues readily itself without government intervention. It is doing so every day. The problem is that many people involved in this situation simply are unaware of exactly how to navigate the problem successfully so they crash and burn, losing everything.

This is how to do it:

1. Have the mortgaged house appraised. It should be valued at a significantly lower amount now than when you last mortgaged it as the real estate market has declined markedly during this time period.

2. Arrange for the house to be refinanced by a private lender, not a regular normal brick-and-mortar bank. Use the numbers the new appraisal provides irrespective of the size of the first mortgage.

3. Clearly the refinance will be significantly less than the current mortgage and there is the issue. We must then convince  the original mortgagor to release and take a loss accepting the new refinance money as the total payoff and forgiving the shortfall.

This is were the skill is required and there are many issues and problems with this part of the plan, but it can be done. You may need the assistance of an expert in negotiating this, however, this is the way out and it can be done. If your credit score needs boosting, this can also be worked on.

In short, we do not need the government to get involved in commercial enterprise. Let the market provide the answers. Allow the market to resolve this dilemma and frankly, the answer and strategy described above leaves you in better shape than you were before. How’s that for a solution?

Call me if you need a referral to someone who can handle this matter for you successfully.