There is much to agree with in Professor Peiser's Op-Ed (The foreclosure mess, Boston Globe, October 20, 2010: A13).
However his suggestion that those people have suffered from improper foreclosure forego litigation against their mortgage servers is absurd. People need to be able to redress the wrongs committed against them.
One suggestion for cleaning up the mess is for Institutions (banks, state government, federal government) enter into Shared Appreciation mortgages with the distressed homeowner. The homeowners pay what they can, the institution picks up the rest. Both share in any appreciation of the home when it is finally sold.
This has multiple benefits. Only the institution and the homeowner have to agree on a contract. The multiple, often unknown, holders of the mortgage do not need to agree as their cash flow will be unchanged. Homeowners stay in the houses; property taxes continue to be paid; neighborhoods will be stabilized; and school classes will not be disrupted as pupils move as a result of foreclosure.
There are not many solutions with so many beneficiaries.
Sent to Boston Globe