Ideas to help stop the foreclosure crisis?
Hi,
Just reaching out to my fellow Americans…and want to know your thoughts on any innovative ideas and solutions to ’solve the foreclosure crisis’ =)
Tagged with: fellow americans • Foreclosure • innovative ideas
Filed under: Foreclosure Solution
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People need to be smart and not buy more house than they can afford, and banks need to not let people buy houses out of their reach. Its too late to do much about the current situation just ride it out. Bailouts, while easing the blow, only prolong the problem.
THE SOLUTION TO THE FORECLOSURE CRISIS
A Workforce Housing Program which has been around for more than 30 years and actively utilized in the ski resorts and many major cities could simply be applied to resolve the foreclosure crisis.
The plan would be to offer an opportunity to all homeowners to participate in launching a National Workforce Housing Program by placing a “Deed Restriction” on their home (must live in the home, own no other home and work for a living) with a 3% yearly cap rate for sale purposes. The home would be reappraised at the new value (30% to 50% less than a similar free-market home). The mortgage would be rewritten and payments adjusted to the new appraised value.
It would not be a “give-away” or a “bail-out” since the participants would buy-in to the program by forfeiting the “free-market” appreciation value of their home and by also participating in launching a National Workforce Housing Program, which is much needed, plus there would be no negative stigma on participants since they paid to participate.
The home would remain affordable to workforce people and families forever due to the restricted appreciation and sale price (3% compounded yearly).
It would not encourage homeowners who own a home they can afford to jump in on a “give-away” or “bail-out” they don’t need, but would reward them by solving the foreclosure problem in their neighborhoods and cities and allowing their home to start appreciating again and allow the economy to repair it self.
The Plan could also be offered to bank owned and developer owned homes, which would also help the housing industry by doing away with the over-supply of homes for sale in our country which is a major problem.
It would also create and opportunity for renters and 1st time homebuyers to purchase a home at an affordable price which is also much needed and deserved.
This is a once in a life-time opportunity to create a national workforce housing program at a fraction of the cost of a piece-meal price while solving the foreclosure crisis and the homes would be scattered throughout communities instead of concentrated in projects.
It is a solution to the foreclosure crisis and one that we already understand, and know how to run and implement not one we made up for the crisis.
Families would be able to keep their homes and homes would once again become a home like in the not so long ago times of our grandparents who burned the mortgage as soon as they could and never borrowed against their home again.
The “delta” between what is owed and the new appraised value would be paid by the federal government in the form of “tax credits” to the holder of the mortgage. This would also provide an incentive for the country to go back to work since tax credits are only applicable as write-offs against profits and taxes owed.