Job creation policies necessary for economic change
Increasingly, there is no stigma against people who have undergone foreclosure in todays economic environment.
For people with no equity in their homes, no jobs and no credit, walking away from a property is not irrational. Unfortunately, Susans story is not at all exceptional (see Foreclosure: Many teetering on the edge of disaster, Sept. 5).
Often, the people most likely to be foreclosed on have been making payments and building equity for many years. As Rep. Brad Witt pointed out, there are government programs designed to ameliorate the situation but, in practice, it is almost impossible to get any straight answers from either the banks or the government bureaucrats.
We all know of people who have been foreclosed on in spite of receiving verbal notification from government agencies or banks assuring them that their loan adjustments had been approved. This is not a result of anyones malice. The existing laws and regulations are so complicated, and often contradictory, that few people can understand them. The regulations are often thousands of pages long.
People working for either the banks or the government are afraid of making mistakes, which could cost them their jobs. Inaction on restructuring is the result, and foreclosures are the default.
The situation will not improve until the economy improves, and the economy will not improve in Oregon unless the policies of the last 20 years are shifted toward genuine job creation.
Chana Cox, Skyline Drive