Mortgage Crisis Examination

In this political campaign year, the truth about individual mortgage compliance has become an issue to support competing government policy recommendations. On the one hand there is support for using taxpayer payments to replace the mortgage holders responsibility, benefiting them and their lenders. On the other hand there is support to allow the contractual obligations between lender and mortgage holders to be worked out in a business like manner between the involved parties. The attention being given to these issues has caused concern with the public, and negatively affected economic health in the world.

Fewer homes are being sold, available lender money has been reduced and the appraised value of individual residences has lowered. While some areas of the country are impacted differently, there seems to be a public, universal belief that a crisis exists. If it exists, someone must be the cause and must accept the blame. That seems to be the prevailing image among a majority of the population.

It might be useful to examine recent census bureau statistics for a solid basis of data, rather than just speculation. These numbers come from data gathered in the 2007-2008 survey of American housing units.

There are approximately 130 million places where people can reside in the United States. That’s nearly one residence for every 2 persons. Of those living quarters, about 111 million have occupants living in them. The listed owner occupies 75 million of these residents and renters occupy the remaining 36 million.

Of the 130 million homes, about 115 million are being purchased by the owner using some form of lending contract with a lender. The majority of these contracts could be described as mortgages. Most of the payback process requires a monthly payment by the residential purchaser. Recent data shows that 110 million of those payments are, and have been, paid to the lender on a timely basis. That means only 5 million payers are behind in their payments.

This calculation would indicate that 96% of those mortgage-holders honor their commitments to pay back the money they borrowed. Only 4% are not honoring that contract. Even some of these persons are negotiating a more equitable payback contract. Is this a sound reason for requiring those who do pay to pay added taxes to bail out those who don’t?

Is this really a crisis in the housing market? If it is, then the employment picture must also be in crisis. 95% of those persons who desire to work in America are doing so, while 5% are unemployed, or seeking employment.

Perhaps, if we could look at this reality as a nearly full, rather than being media-focused on a nearly empty vessel, the crisis could be diverted to a celebration.

Submitted by Gerald Dudley Ph D, developer of: www.careerfit-test.com a career test validated through analysis similar to that used in writing this article.

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