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.
And the reason you want the Federal govt to become the mortgage holder for everyone is ... ????
Do people not realize that this ...
... “Say a house has a loan on it for 200k. The fed will buy it from the bank for 100k.” ... is sort of what the plan IS?
It’s about buying distressed assets for cheap so the banks can clean up their books.
How about doing a federal auction with a minimum price. Open it up to the investment market and then set up loans so that investors could benefit from the pricing and borrowers can come back in and get these properties but have the private sector manage it.
Insure the property with a loan in case the loan goes belly-up kind of like an FDIC insurance for 100k in banking except this could be the full value of the loan.
The reason is because the govt would be paying the banks 45 cents on the dollar for a mortgage worth 20 cents on the dollar, then the govt would be a landlord with a renter who cannot afford the rent. Taxpayer screwed, socialist action, unnecessary govt. intervention. The bank can do one of two things: negotiate with the “owner” to knock off 80% of the loan principal, or the bank can go bankrupt and get out of our face. It’s between them, not us.
Is the Fed going to pay the local property on these homes?
Or are they exempt?
Whoops,
property taxes.
How bout just doing a private auction? Will hurt for awhile but will settle itself out over time.
And just why should I pay for either. Which one of my bad decisions would you like to bail me out of? I can send you a list if you like.
Here’s my thought on it. I paid off my property, built my house without going into debt and own all of it free and clear because my family gave up several years of comfort to avoid thirty years of debt. Can I get a $10 thousand dollar gift from the government for exercising better judgment than people who borrowed past their means? I’m just asking. Since the government is forking over billions, trillions, why not give us all $10,000, or a million, or a billion, because that is what we will need to feed a family of four for a year. Seriously, how much will it take for all of us to vote for Democrats and think PC?
because they know these borrowers are a really BAD risk in the first place.
How about we cut capital gains taxes to say ZERO percent for five years, and cut 500 billion from the buget in 2009 and not increase the budget.
Or we can send all of our paycheck to the IRS and hope each month they send us enough to live on.
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.
I am not in favor of this plan. But if it is going to come to pass, these are ideas that may make sense and be helpful.
It will help eliminate some of the costs of maintaining the properties. You can have families stay in neighborhoods where their children are already enrolled in schools and have friends. Where they have pride in the property that they have called home for several years. This is the reality of the situation. 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.
This is a way to have at least some money coming back into the fed right away. If they do not pay, evict them.
Many families are suffering from this. If corporate lenders are going to be able to wipe their books clean, the least we can do is offer a little help to these folks. Not bail them out, but throw a life line half way.
I can feel the beating coming from you guys already! LOL
WHYDOESNTTHEFEDBUYOUTHOMEOWNERSWITHBANKS.COM is available!
How about an Adopt-a-Mortgage plan? Would be a perfect opportunity for Hollywood, mainstream media moguls, etc. to put their money where their mouths are by trotting over to the bank and paying off someone’s delinquent mortgage! Imagine how many Oprah could wipe out all by herself!
Do you realize how many people will go bad on their mortgages just so the fed will buy it and give them $10,000?
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. This notion of bailing out the greed ofwall street is insane.
I like it...when another idiot starts blabbering “tax cuts for the rich when they didn’t even ask for it”...give them this option OR get taxed more and the proceeds going to
ever more govt. pork.
THEN single out all those just like George Soros, Oprah, Ted Turner, Kennedy, Heinz-Kerry, etc. and NOT just the CEO types they demonize.
Point out there’s nothing that stops these idiots to send their money in a tax-me-more-fund to the FEDS.
capitalism will work. give it a chance. don’t be so quick like Chavez wants a new constitution drawn for us. He needs to deal with his issues in Venezuela
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