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Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,766,887 times
Reputation: 3587
Quote:
Originally Posted by gsupstate
So I guess responsible homeowners like myself would have the rest of our mortages paid off??? I've paid on time, every month for 11 years now. I guess the government will pay off the remaining 19 years of my mortgage under your plan? OR will government just forgive mortgages for the deadbeats who don't pay there mortgage payments?
They would pay off the remainder of your mortgage up to $200,000
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,766,887 times
Reputation: 3587
Quote:
Originally Posted by sanrene
So you think I should buy you a home?
I pay my loan and only have 5 years left on it so it will not benefit me that much personally. My feeling is that, if we were to do this, and people didn't have mortgage payments to make anymore, maybe they would spend more money on other economic activity and that would help the economy out. Plus if HUD held title for 5 years, this would prevent people who took the pay off from using their house as an ATM or even selling it which would promote recovery, financial stability and neighbourhood stability all of which would be good for the country.
The problem with this is that it would reward risky behavior. All of the hard working, tax paying, decent citizens would be subsidizing those who tried to flip properties or purchasing a property without a proper down payment. We shouldn't reward short cuts or get rich quick schemes.
This is a far better idea than bailing out big finance. Without being able to touch the value of the forgiven mortgage these folks would still have to earn their money and not be able to borrow against the equity. It would also effectively freeze the used housing market for five years. That would keep the speculators out. Good all the way around.
I would love it because the only thing standing between me and a retirement are mortgage payments. Bring it on.
Rewarding speculators and other flim flam men is the Republican Way.
I have an idea that will help the economy alot which would be to completely forgive mortgages on houses that are owner occupied up to a certain amount- let's say $200,000. There could be certain conditions applied to it such as the title will be in such a way that you cannot borrow against the home for a period of time- maybe 5 years and you cannot sell the home for a period of time- maybe 3 to 5 years. Maybe the title will be held by HUD for that period of time and then be given to the homeowner free and clear after the 5 year period.
This would be a cheaper and better way of putting perhaps 2 trillion dollars back in the pockets of people and allowing them to consume and to pay down other debts such as credit card debt which should stabilize those markets. In the end everybody wins. What do you think?
KevK, i disagree with you, let's not forgive all mortgage debt, but continue to offer more incentives for companies, to offer 30 year fixed mortgages for the few million individuals, that have taken out adjustable rate mortgages and could not afford the adjusted payment. I think this is much better than outright paying off peoples mortgages who made bad decisions. Hell, I'd even before Federal Grants, that mandate states provide first time home buyers, take 5-10 days (6 Hours) worth of mortgage education classes to prevent this from happening again. My tax dollars would be better used for the education of the home-buyer than just flat out forgiving them with a slap on the hand.
Yes, i know it acts as a barrier to entry (and slightly impedes on an individuals right to property, but is 6 hours of education asking too much?) and may prevent some people who lack the time to buy a house for the first time, but if its that important to them to get a house, they'll take the class.
Personally i think it is great there is a limit on lending consumer credit and i hope the Fed continues to advise banks not to give out the money. I'd rather see slower growth and the consumer get their house in order, then see faster growth, and consumers using cheap credit again to get themselves right back into trouble. The consumer proved they are irresponsible and while I'm not for taking the right away from anyone that wants to spend their money as they see fit a slow down in the allowance of available credit is the best thing that happened to this credit hungry economy.
Let all of us responsible people purchase a house way out of our means and max out our credit cards first. I could probably pull down some serious students loans, too.
Geez, its like some people have no regard for others.
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