One of the many comments out of President Bush's mouth about the high rate of foreclosures was that when homeowners went to sign their mortgages three to five years ago, that homeowners did not read the terms. Due to not understanding the different loans like the three or five year ARM or a Libor, many Americans realized recently that when their terms come to an end, their low interest payments will begin to rise. Unfortunately, because of this realization, many people have begun losing their homes.
For holders of these mortgage loans, the reset process in mortgages is this October! Instead of belittling the country that has seen a tremendous drop in home sales and a rise in foreclosures, why hasn't anyone come to the plate and help educate? Why hasn't the government decided to use their power and help the large majority of Americans save their home?
In June 2002, President Bush declared June to be National Homeownership Month. Five years later, after the big real estate boom, why hasn't the President declared a program titled No Homeowner Left Behind? The administration developed the NCLB (No Child Left Behind) Act within months of the new President taking over the country. If the government is so concerned about making sure every child gets a proper education, then why aren't they concerned when these same children, who may end up living on the street, because their parents lack mortgage education?
Do you think every homeowner understands what the terms and conditions are when signing the closing documents? Most new homeowners just want to know what their monthly payment is going to be and can they afford it every month. Not many think three or five years down the road that the economy may be in a down turn and their million dollar mortgage is now going to cost them more than their monthly paycheck.
If we compare recent statements of the President commenting about this sudden rise in foreclosures to when the test scores dropped in schools, no program has been brought into the government to remedy this. We propose the No Homeowner Left Behind program to help present and future homeownership to be easily understood. Why should only the children not get left behind while allowing homeowners to suffer from the lack of mortgage education available to them? Isn't it time the President take some responsibility for the economic downfall in the U.S.?