We are interested in only two things; stemming the tide of homelessness and not having foreclosures devalue the property values of neighborhoods.
To that end the govt. should find ways to compel those who can't reasonably refinance mortgages into 5 years leases paying between 22-28% of their monthly income. And banks who made poor loans forced into landlord status. At the end of five years further review or bankruptcy could deal with the issues.
Those people who can refinance should not be allowed to do so without penalty. If you bought a home for $200,000 that is only worth $140,000, then you should be allowed to refinance at the $140,000 level. Except, the ownership is a partnership in which the bank has a $60,000 stake in that home. When you sell that home in the future the first $60,000 goes to the bank. No federal help to banks who do not abide by these guidelines and harsher treatment by bankruptcy courts to people who decline this type of option.
These are un-fleshed but better plans than what this administration has put forth. It speaks to equity and fairness to all including those that played by the rules
To that end the govt. should find ways to compel those who can't reasonably refinance mortgages into 5 years leases paying between 22-28% of their monthly income. And banks who made poor loans forced into landlord status. At the end of five years further review or bankruptcy could deal with the issues.
Those people who can refinance should not be allowed to do so without penalty. If you bought a home for $200,000 that is only worth $140,000, then you should be allowed to refinance at the $140,000 level. Except, the ownership is a partnership in which the bank has a $60,000 stake in that home. When you sell that home in the future the first $60,000 goes to the bank. No federal help to banks who do not abide by these guidelines and harsher treatment by bankruptcy courts to people who decline this type of option.
These are un-fleshed but better plans than what this administration has put forth. It speaks to equity and fairness to all including those that played by the rules
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