• William Blake

    re: Obama signs national service legislation

    I have written to many folks, including most of those mentioned in today’s volunteer legislation articles, concerning a basic community based solution to both harness the renewed volunteerism and our home-foreclosure problem. Most nonprofits cannot hold assets however, a 509(a)1 can, and if it is also mission driven around housing, which means it can hold both the house asset and the mortgage paper, against houses.

    This makes it a quasi-bank; it can hold the house going into foreclosure, “modify” the loan around the current owner’s ability to make monthly payments. The reduced dollar amount on the first mortgage would be held as a “soft” second mortgage, to be repaid through volunteerism (e.g. for every hour worked/volunteered, would reduce the second mortgage by $20).

    There is only one organization which I am familiar with, that fits this bill, the Affordable Housing Center (AHC), 509(a)1; it has the potential to be the hub for HUD foreclosures and the vehicle for (a broader) volunteer coordination.
    Duplicate postings of my response will be made to other articles, in hopes to begin a larger discussion.

    By the way, I submitted AHC to Google’s project 100, the one for great ideas to change the world; perhaps the cyber world can create an online demand to sway voting, via Google inquiry/search.

    PS (Some of you smart, network savvy and compassionate people must recognize the potential here and use your skills to promote.)