Posted on 09/29/2008 6:07:46 PM PDT by roostercogburn
Why doesn't the fed buy out homeowners with banks? Say a house has a loan on it for 200k. The fed will buy it from the bank for 100k. Why not give the bank 90k and the distressed homeowner the other 10k? Obviously they must vacate or agree to a 1 year lease at a monthly payment less than the original mortgage, yet still comparable to other rentals in the area. Payments made directly to the fed. Now I am sure there are problems with this, but it could be an option huh? Ones who choose not to lease can take their money and hopefully do some right things. If not at least we know they will spend it. We are taking the money from the banks end to cover it.
Let me think about it. I’m sure there’s some way elected officials can skim something off the top at tax payers expense.
well you are a very lucky person that even just giving up luxuries for a few years paid for a new home. Most people don’t have that kind of money.
I am dealing in the mortgage and forclosure industry everyday and let me tell you that it is not just a case of deadbeats.
People have lost their jobs!!!!!! it doesn’t matter if their mortgage was 200k or 20k, they can’t pay a mortgage when there is no money coming in and aren’t any jobs!
maybe you can tell i live in michigan, where we have been living in a deep recession for a few years now.
I am sure that quite a few of these forclosures are from people who wanted to live outside theirs means but lets get real....most have been forced into this situation without any bad decisions made on their part.
These mortgage companies SENT MONEY BACK to homeowners who tried to pay their back payments in full. whats up with that? doesn’t it seem as though the mortgage companies should have been more than happy to take one off their books?
“I read today that one company has three trillion dollars in assests and of that three hundred million is bad.”
“This plan allows them to dump this on us.”
NO! It allows the treasury to set the price and to buy the assets it chooses, we NEVER let the companies just ‘dump’ whatever at their chosen price.
Why are people making false assumptions here?
Furthermore, there are ways the treasury has to make sure he is paying market price, and ways to recoup the losses, if any.
In the end, if we take the asset off their books, at a market-oriented price that down the road can payoff for a profit - what is the harm in that deal?
“As we speak the banks own millions in foreclosed property. What are they doing to sell them? Nothing. These same banks complaining about cash crunch will not budge on the asking price of foreclosed property. If the loan was for $160000 thats what they want, even if the property is worth only $140000.”
That’s not true at all, you can regularly get foreclosured for less than listed loan amount. Banks will want to get rid of it for the market price. If they are holding back selling they must think that for whatever reason that they are better waiting to sell.
” This notion of bailing out the greed ofwall street is insane.” - it is insane to dismiss this rescue of the credit system as such.
“There are folks in my neighborhood that are having a hell of a time paying a 1500 per month mortgage. Plus taxes. Rent it to them for 1000 and see how it works. Better than rows of empty homes with grass up to the knees and crackheads squatting in them.”
There is a solution: The free market.
Someone who can afford it (ie saved money) buys the homes for investment and rents them out to these folks, for $1000/mo.
“This is a way to have at least some money coming back into the fed right away. If they do not pay, evict them.”
You are way to naive. The Fed govt gives people soe much in welfare and then will ‘evict’ them for not paying up? NEVER WILL HAPPEN.
Only a real landlord will do that.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.