strattonsigns
F L I N T O I D
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I think the real problem here is a lack of qualified home buyers. There are lots of people who would like to own houses but their credit ratings have been killed by our in-house recession that's been going on for 20 years.
This is how I would handle it if I had the power.
The Feds are going to bail out the lenders one way or another, right?
We have an over abundance of housing that the Feds are going to have to maintain if they remain vacant.
I would offer people, regardless of their past credit rating an opportunity to purchase these homes on a 0% 7 year balloon.loan if 2 criterea are met.
1. The buyer must have no more than a 50% debt to income ratio
2. The mortgage on the home must not exceed 80% of the highest appraised value over the past 5 years.
The buyer would have to agree not to take on any unsecured debt for the seven year prep period. Over those seven years several things will happen (hopefully).
1. The buyers credit rating will have gone up considerably
2. The value of the home would stabalize.
3. The feds avoid maintaining a vacant home
4. The local muni still gets it tax money
5. Unforeclosed home values will be propped up, enticing those home owners "on the fence" to keep their homes.
Seems like common sense to me...mitigate their losses...help those in need....probably makes too much sense to enact. |
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