Can The Free Market Help With Foreclosures?
Yes, it can. Ira Hecht proposes the creation of an online market for troubled mortgages to be called: Mortgage Crisis Solution Program. The program would allow those with troubled mortgages to enter their data onto the database, (with privacy protections of course), and lenders would be able to find troubled mortgages worthy of re-financing. Obviously, this would not solve the mortgage crisis. But it would allow those who have short term difficulties to negotiate to keep their homes. Many people with good credit and properly valued homes deserve an opportunity to refinance.
This is an idea that should be developed. In this country much of the devotion to the free market is the most shallow of lip service. This would be government service to put lenders and borrowers together. If it’s socialism to put these people together, we need more of it. We should be encouraging this type of exchange, allowing individuals to profit while saving people’s homes.
Andrew Caplin has been writing about problems in the mortgage market for years. He is an economist and important author in the field. He thinks this is a good idea.
Let’s let the free market help this country in its time of need.