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A foreclosed homes expert has devised a plan to help the US economy without using tax payers’ money – national ‘Skip a Mortgage Payment’ month.
Laura Schuster, also a property broker and author, drew up the idea as a way of giving power to borrowers struggling with home loans.
Her plan involves borrowers spending the money on shopping during the festive holiday period instead, in an effort to help the economy as a whole.
She said government efforts at solving the mortgage crisis were “ineffective and inexpensive” and that it was unnecessary to use billions of dollars to bailout struggling companies when a spending injection would help.
Ms Schuster said of her idea:
“For the homeowner struggling to make their house payment every month, it empowers them and turns the tables on the lenders.”
In September the American government controversially opted to take over the country’s two biggest mortgage lenders, Fannie Mae and Freddie Mac.
Then in November another government bailout totalling $700 billion was approved for struggling financial markets.
Much of America’s economic strife has been traced back to a sub-prime mortgage crisis which saw many homeowners default on home loans.
This put Fannie Mae and Freddie Mac, responsible for many of the country’s home loans, in serious trouble before the rescue.
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