Is it fair to force people who have faithfully paid their mortgages to bail out those who haven't?

by Autherine B. Smith

Created on: July 11, 2009

Government mortgage assistance programs should be available to homeowners who 1)could afford their homes at the time of purchase; 2)fell behind due to a set of circumstances beyond their control(illness, loss of employment, reduction in work); and, 3)can now resume mortgage payments or can resume mortgage payments after a specifically defined forbearance period. On the other hand, there are some people who cannot afford to become homeowners.

For example, you may have a solid middle class income but believe your children's education is your top priority. If you choose to send your children to the best private schools in your region, you may not be able to afford a home. Some people have knowingly entered into mortgages way beyond their means. Government mortgage assistance programs should not be available to the latter categories. Instead of looking for government sponsored programs, these unfortunate homeowners must look to extended family resources, friends, their own fortitude, and renting.

Predatory lending practices should be addressed by our government at the municipal, state and federal levels. Legal Aid, pro bono, and private practitioner attorneys must continue to aggressively defend against mortgage foreclosures where there are clear violations of law which can be established in a court of law. Overwhelmed courts must continue to institute alternative dispute resolution programs for homeowners facing foreclosures and impending homelessness. The Philadelphia County Court of Common Pleas has an exemplary program.

On the other hand, lenders who can demonstrate their compliance with the terms of state and federal laws, should not be unnecessarily punished for the decisions of homeowners who chose gated communities when what they could afford was the up and coming community near the inner city.

Government support should be given in the form of funding to premier legal aid programs, such as the ones in New York City and Philadelphia, to Law Schools to fund Housing Clinics, to reputable non-profit credit counseling programs, and to public school systems to fund financial literacy programs for juniors and seniors. And yes. Cash grants may be appropriate to a limited few.

The Honorable Colin Powell, who crossed political party lines to support our current President, has expressed his concerns about excessive governmental spending. No one, not even the most liberal among us, would, today, support a legacy of welfare entitlement programs. These programs clearly do not work.

Even in the burning hot light of the current recession where even celebrities are feeling "the pinch", we must continue to help the truly needy. We live in a country where a bright young man, the son of a single young woman and an absent father can become President of the United States. Surely, we can support our fellow citizens who are facing the prospect of homelessness due to circumstances beyond their control.

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