Send a Tweet
Most Popular Choices
Share on Facebook 17 Share on Twitter Printer Friendly Page More Sharing
Exclusive to OpEd News:
OpEdNews Op Eds   

Mortgage Paradigm Change

By       (Page 1 of 1 pages)   1 comment
Message Rod Rylander

Mortgage Paradigm Change

 

The banking and mortgage system is designed for maximum profit at the expense of its clients. People get into financial trouble for various reasons such as medical costs and lost of livelihood. These unfortunate people often have their equity in their homes stolen from them through foreclosure.

 

I am in Belize facilitating the creation of a credit union based on a new paradigm. The main difference between it and conventional lending institutions is that there are no foreclosures! Instead the institution providing the funding becomes a partner and if the owner cannot make payments, the owner must move out and the institution takes on the responsibility of upkeep and renting of the house. Proceeds from rental leases go toward management, upkeep, and back payments. There are no steep penalties that kick the owners when they are down. When the owner has paid back the funds owed and has savings equal to six months of payments, the owner may move back into the home at the end of the current rental lease. Both the owner and the institution have to agree to a sale of the property.

 

This new system makes the loaning institution a partner that retains responsibility of the house. Therefore the institution should be more careful in not making loans based on inflated values of houses. The brokering of mortgages would slow since the obligations are passed to the new owners of the mortgages.  

 

Must Read 1   Valuable 1  
Rate It | View Ratings

Rod Rylander Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

During my 71 years I have received a BA in Biology from UNT, MA in Social Ecology from Goddard College (thesis - alternative 5 year plan for Nepal);and have been a teenage ornithologist; curator of a museum; teacher in public schools, colleges, (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Only a True Democracy Can Meet The People's Needs; We Need a New Way to Select Representatives to Congress

Looking Outside of the Box

Elimination of Welfare by Democrats

Mortgage Paradigm Change

Eight Requirements for Conquering the World

Budget Extension is a Laugh 

To View Comments or Join the Conversation:

Tell A Friend