- This topic has 0 replies, 1 voice, and was last updated 8 years, 8 months ago by Anonymous.
- July 27, 2011 at 10:53 pm #356607AnonymousInactive
With the current economic situation, here is one way to resolve the issue. What is your opinion or way to save the economy?
First off, $ 700 billion bailout from the government? ouch
By saving the real estate market, it will help the entire economy get back on track. Home owners bought outside their means, didn’t understand what they were agreeing to, or took out equity at the peak of the market. Now these individuals have lost their homes, or are in foreclosure. Banks/Lenders can’t sell these homes and are sitting empty. Ex-home owners have had to move in with family and friends, rent, and in some cases become homeless.
Home owners that are unable to pay their mortgage, should be allowed to have their home value reassessed and be given a lower fixed apr. That being said, the difference between the current value of the home, and what is currently owed on the home will need to be repaid upon the home being sold. In addition, once the home is sold, any amount over what is owed, will be split 50/50 between the home owner and the government. The home owner would not be able to sell their home for 5 years, unless the home can be sold for at least what is owed (mortgage & gov).
-Home owners have a mortgage for $ 400,000
-House is assessed at $ 200,000
-New house payment 1/2 as much
-15 years later the house is sold for $ 600,000
Home owner pays off what is remaining from mortgage. Repays $ 200,000 that the government paid, and splits the remaining $ 200,000 50/50 with the government.
This will drastically cut the foreclosures, and save the US economy, especially the real estate market. When homes are sold in the future the government will get its money back, and profit from all homes sold under that program well into the future.
Its not that home owners are not wanting to pay anything. Home owners are overwhelmed with their payment for various reasons, adj apr, job loss, etc…. If a home owner has a $ 4,000 payment, and can only afford half that amount, why pay half, if you are going to lose the home anyway. That being said, if a government subsidy made the mortgage payment within the home owners budget, the home owner would be more inclined to stay.
The government would regain the money invested when the home is sold. As stated the home owner would not be able to sell their home for 5 years. That limits the amount of new homes on the market, and would allow time for the current market to clear out and prices to adjust.
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