2007 Foreclosures-Defaults-Solutions

Professor Rydstrom, Esq. says: “Creative or exotic loans are not the problem per se, nor are they so “exotic”. What’s exotic is the possible infusion of what I call “RAhD” (randomly activated hidden debt) by the industry and government sponsored entities (GSEs) such as Fannie Mae and Freddie Mac. Reportedly, uninsured first liens with undisclosed second liens were sold to the GSEs. RAhD took down Enron and the dotcom boom. It can also ruin homeowners. If you’re as sick as your secrets, and unknown seconds are the secret, foreclosures will render the economy sick. We must expand the American Dream of homeownership, reduce RAhD with “permanent” tax deductible mortgage insurance, and use what I call: Truly Intelligent Disclosures™ (“TID”) and contractual Safe Harbor Intelligent Loan Options™ (“SHILO”).”