The Homeowner’s Proclamation of 2008
In the summer of 2001, in towns all across America mortgage companies were marketing the “American Dream” to middle class families, and in a move that spanned the landscape of the United States, Americans began to tap in to the dream with each over priced purchase. The buying frenzy became so hot in some areas that by the summer of 2005, a mass bidding war ensued. Average, and often run down properties were going for $20,000.00 over market value in some areas of the country.
To many unsuspecting citizens, often first time homebuyers, these loans did not seem like such a bad deal. Homebuyers were often told that, although unbeknown to them, they qualified or could qualify for a conventional prime loan, they were going to be given a subprime loan with some minor unconventional terms. They were often instructed to save their down payment for repairs and fix ups, and that this unconventional loan would be refinanced in a couple of years when the penalties dropped off, the interest rates went down and the property value increased. Conventional wisdom sounded no alarm as it often suggests that real estate is a “no fail investment.” The belief was that no matter what the terms, no matter what the cost, you can never go wrong when you purchase a piece of property.
As the situation began to unfold and property values across the United States began to balloon, income and appraisal inflation became the accepted norm and subprime loans were the ticket to what should have been an affordable priced home. By fall of 2006, the American dream of owning a home had been neatly packaged in a subprime loan and sold as the best deal. This occurred with most Americans being unaware they would be forced to foreclose less than three years later.
Due to this crisis, this year many American families will find themselves in foreclosure proceeding. Some estimation is as high as 7,000,000 homeowners for this year alone. A barrage of personal bankruptcies will undoubtedly follow these foreclosures. The onset of foreclosures has now caused a mass decline in home prices and sales, small business owners, and individuals who were once gainfully employed in the construction industry, real estate industry, banking industry, and many other industries are now unemployed and unable to pay their subprime mortgages. Neither are they able to pay their consumer debt as well as fund the basic needs of themselves and their families. This mass snowball of decline has begun to rear its ugly head at Wall Street, and now threatens a recession on the United States economy.
Whereas by United States citizenship we have been granted the right to Life Liberty and the Pursuit of Happiness, and whereas one of our great founding fathers Mr. John Locke said the words, “no one ought to harm another in his life, health, liberty or possessions;” and since the economic core of our country is formed on the premise of fair trade, no business or financial institution should be able to form such a tyranny as the one that has been formed by the banks and institutions involved in the subprime mortgage crisis.
These mortgage companies and financial institutions have voiced a concern about an obligation to protect their financial backers and investors. The innate nature of investing, however, carries with it an element of risk. Furthermore these banks and institutions have willingly violated the trust of the American people and caused a mass crisis for the United States economy, therefore these banks and financial institutions carry both an ethical and financial responsibility to make amends with the population. Being that these very banks and institutions are FDIC insured, it is the commission of the United States government to require the mortgage companies who offered subprime loans to make restitution to those United States citizens to whom they issued these loans.
Whereas the mortgage industry as a whole issued subprime loans with ARMS, balloon payments, and astronomically high interest rates to homeowners who did not deserve these terms; and since the majority of these mortgage loans were issued on the basis of appraisals that over inflated the property value; and since this willful act of greed on the part of the majority of the mortgage industry sparked a mass decline in the construction industry, real estate market, banking industry and many other related business industries;
Let not the Government of the People of these United States continue to rescue these financial institutions who have formed a tyranny against these American citizens unless these institutions make restitution to their consumers.
Let all homeowners to which were issued subprime loans, regardless of foreclosure proceedings, be offered restitution by the mortgage company that currently holds the lean against each property.
Let all United States citizens who were given subprime loans of any kind from January 1, 2005 until January 31, 2007, or who were or are currently licensed business operators or employed in the construction industry, real estate industry, banking industry, or any business industry that can attribute a substantial loss in revenues due to the subprime mortgage crisis be permitted to receive restitution.
Let all mortgage companies who offered subprime loans be required to issue a mortgage modification loan based on each properties current appraised value.
Let all mortgage companies who issued subprime loans offer forgiveness of debt that was accumulated as a result of an inflated property appraisal.
Let all mortgage modification loans will be issued at no more than prime plus 1.5% and fixed there upon.
Let not any lender issue an adjustable rate mortgage, to any borrower, against a single family residential home during the mortgage modification process.
Let no points or penalties be charged during the mortgage modification process.
Let each homeowner be given the option to pay the closing cost upfront although not required to do so.
Let all broker commission fees be fixed by the United States government.
Let not the homeowners be penalized for derogatory credit that was a result of this crisis.
Let all back mortgage payments be figured into the mortgage modification loan and no longer counted as late against the homeowner.
Everyone has the right to the “American Dream!”