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The Homeowner's Proclamation of 2008

Introduction

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

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