There is no money to be SIPHONED off.... The powers that be will/would
NEVER go for it.

On Jan 19, 2:52 pm, VT Sean Lewis <[email protected]> wrote:
> Fixing the Housing problem 101 for dummies.
>
> Sean Lewis
> January 19, 2009
>
> point of order
> This needs NO FUNDS FROM THE GOVERNMENT! WE ARE THE INSURERS OF THE
> LOAN IF IT SHOULD FAIL.
>
> Hi, Mr. Loan officer I am about to be foreclosed on my home can we
> renegotiate my monthly payments.
>
> Yes Mr. Home Owner we can with this government backed program.
>
> You understand sir that you are relinquishing your ownership of your
> home, however you will be able to remain living in your home if you
> can afford the new payments.
>
> Also Mr. Home Owner you will have the right to buy your home back at
> the new adjusted price for the next 2 years, and at market price for
> the next 3 years after that. If your home is purchased after these 5
> years have passed you may have to move out if this is what the new
> owner wishes.
>
> I understand Mr. Loan Officer.
>
> OK, you are paying on a $100,000 mortgage at a rate of 7 1/2%. We will
> adjust the loan to $70,000 at a new rate of 4%.
>
> This will reduce your monthly payments from $845.27
> to $436.27. Can you afford this?
>
> Yes I can and it will allow me an opportunity to become fiscally sound
> again.
>
> I know I am now a renter with the option to buy, but at least the home
> will not be foreclosed and I will be able to stay in my home.
>
> Good, Mr. Home Owner, let me verify your income, fax the paperwork to
> 'TARP PROGRAM' and next month you will be paying your new monthly rent
>
> Ring Ring Ring....
>
> Hello Mr. Homeowner on processing your paper work we discovered you
> bought your home in 1998 and have $15,000 of equity in your home. We
> will give you credit for this.
>
> So now this will reduce your loan to $55,000 and your monthly rent
> will be $342.79. Can you afford this?
>
> The total amount of paper work? One page.
>
> This was a scenario of how this plan below would be done.
>
> you can not afford your home.
>
> you go to a the holder of the loan and you cut THIS deal.
>
> With government backing you negotiate a new monthly rent based on a
> month mortgage at 70% of 2003 market value.
>
> You now have the ability to save money and stay in your home.
>
> This home now does not go on the market as a short sale foreclosure at
> below market price.
>
> The renter now has two years to save up the 20% down payment and get
> their finances back in order.
>
> If the renter can not, they have five years to buy back the home at
> the market rate or the new valuation, which ever is greater.
>
> At 5 years the financial institution offers the home at market value
> to ALL buyers.
>
> During these 5 years the financial institution is collection rent, and
> at the sale of the home they will also get cash for the home.
>
> So this stops ALL foreclosures IMMEDIATELY that are not created by a
> job lost or bankruptcy.
>
> The idea is to stabilize the market and keep people in their homes, as
> renters paying into the financial institutions or future home owners
> once they get their finances back in order.
>
> Remember this is just the FIRST leg of the solution, getting the
> economy back on it's feet is the other. This is why there is a five
> year period while jobs are brought back into the country and domestic
> GDP growth is created again through internal organic growth and
> synergies.
>
> I believe this will stabilize and slow down the falling prices so that
> deflation will end and the cycle will begin again.
>
> Which is better, shaving 30% off the value of the home and keeping the
> existent owner in the house as a renter for 2 years with the
> opportunity of buying back their own home in 2 to 5 years? keeping
> this foreclosed property off the market for 2 to 5 years to help stop
> deflation.
>
> Or evicting the family, and having a property empty with no revenue
> coming into the financial institution and one more property
> contributing to the deflation of home prices by being offered far
> below the surrounding homes and NEW homes being built.
>
> This will fix the housing problem, however with 10 months of inventory
> on the market the effects will not occur until the inventory is worked
> through.
>
> Also this needs NO FUNDS FROM THE GOVERNMENT! WE ARE THE INSURERS OF
> THE LOAN IF IT SHOULD FAIL.
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