Over the last two years, America has seen unprecedented foreclosure
rates (3.2 million filings in 2008), and most financial experts expect that the
number could increase dramatically as another wave of homeowners sees their
mortgages re-set over the next twelve months. Those are startling figures by any
measure, and most existing rescue efforts are targeted at the consumers who
comprise a significant portion of this unfortunate group, specifically, those
homeowners who could afford a workout plan predicated on a modest reduction in
the monthly payment. This approach is certainly appropriate, but it overlooks a
portion of the population that we should also consider carefully: the number of
consumers who are barely able to afford their current mortgage payments and who
are not fully participating in the American economy.
Such individuals make their mortgage payment every month, or in most
months, but they also miss payments on other obligations with some frequency.
They can afford very little beyond their home, but, if given the opportunity for
mortgage relief, they would help revive our sagging economy as traditional
consumers do, by participating more fully within the system. How many homeowners
fit this description isn’t known precisely, but in Cambridge’s counseling experience, the number
is likely significant. Without such assistance, this group of homeowners stands
at the brink of foreclosure, a minor medical emergency or home repair bill away
from going over the edge. Cambridge
feels that these individuals must also be considered in any conversation about
solving the foreclosure problem.