INSANE?End foreclosures,short sales,makes for affordable homes

Can you help me keep my sanity?

I am ,I believe "That one poor fool" that believes he has the answer as to HOW: The Foreclosure,Subprime Mortgage,Housing and Economic Crisis can be resolved at a PROFIT to the taxpayer.

THE END OF FORECLOSURES AND SHORT SALES
AND THE BEGINNING OF AFFORDABLE HOMES FOR ALL AMERICANS.

Would you please challenge this plan?
The HECM,Home Equity Conversion Mortgage provide by the "Housing and Economic Recovery Act of 2008 could end this recession.End all foreclosures and end housing prices declines.
Please read on if for no other reason than to prove a plan wrong
that states it could end ALL this grief for all AMERICANS.



 
"The Everybody Wins Plan" by BASILOVECCHIO
  BASILOVECCHIO wrote:  Would it be irresponsible to resolve at least the portion of the financial crisis that pertains to ALL underwater mortgages
subprime and of course , now even those that were prime in such a manner AS TO BE PROFITABLE to the taxpayers????
Thank you,Paul Volcker......"An outside agency"  
                     Robert Shiller...."properly funded"
                     Dr. Yunus..........." a profittable business that does
                                                      a  social  good."
The legality is already there.
Funding is already there.Actually NO NEW MONEY NEEDED,This is just a government guarantee of payment.And in
 90 days or less 8 to 12 million homeowners
would be paying their mortgages not only on time but one month in advance.
85% want to stay and pay,the other 15% will have a waiting list of those who would
wish to purchase their homes with the use of THIS FEDERAL APPROVED REGULATED PROGRAM.
 EVERYONE knows about the $700 billion TARP program Where the feds gave away
 $350 billion and are looking to give away the other $350 billion.
Everyone knows about the $787 Billion Stimulus package
to create jobs etc.....but why is it That
IT is so difficult to get the word out on TV or internet
that the feds passed the Economic Recovery Act Oct 2008
in which EFFECTIVE JAN 1,2009 THE FHA WILL GUARANTEE
BILLIONS AND BILLIONS OF DOLLARS IN HOME LOANS!

This program could be the basis for 100% recovery of ALL
defaulting mortgages,ALL and with no cost to taxpayers ,
with  A PROFIT to the taxpayer.

"THE EVERYBODY WINS PLAN"
TAKE ALL LOANS MARK THEM TO 100% TRUE MARKET VALUE.
YES 100% Fair Market Value"
NEW MORTGAGE (TWO PARTS)10 Yr plus 30 YEAR
with A VERY LOW PAYMENT is the solution.
Just as in the 1930's
A LOWER RATE OVER A LONGER TERM got people back to buying the ranches because they turned the 5 year loans into 25 year loan-
Thank You ,Dreyfus School for the Arts and Wellington High School Debate teams for that bit of info.

Please feel free to:
print- edit- copy- trash-challenge or endorse


A SOLUTION TO THE HOUSING MORTGAGE CRISIS AT NO COST to the taxpayers,rather at a profit to the taxp[ayers.
Using today's rates and knowledge,the entire inventory of troubled homes will become EXTREMELY AFFORDABLE and thereby
AAA and 100% asset based.

A special 10 year year mortgage with an automatic 30 year mortgage that includes
PRINCIPAL
INTEREST
TAXES and
INSURANCE.

PER $100,000 loan there would be a total fixed 10 yr. PITI payment of
.........$500........PITI followed  with a 30 year fixed mortgage that will
pay the loan in full..
FOR HOMEOWNERS;
Let them stay in their homes,
Let them be able to afford it,
and be able to manage it.
THIS IS THE REAL AMERICAN DREAM.
Turn this challenge into a greater good for all.Re-establishing "CREDARE" .Faith in the American people and home values.
This is a fast and great solution to the problem and it allows for time 
to fix the blame and to do what is nessecary for  future prevention.

We simply must get off the idea that we should only help "the good" people and leave the "reckless" ones to their own ends. Whether the foreclosed house next to me was owned by a good guy or a reckless flipper doesn't matter.. my home value goes down either way due to the foreclosure.
We simply have to set aside moral judgments and fix the problem.Why not at the same time create revenue for all taxpayers.  
The Housing and Economic Recovery Act allows the FHA and HUD to guarantee the FULL payment of a Mortgage  untill  the homeowner either sells the home or dies.The asset value of the home is the 100%  security for the loan.We need only modify the conditions for this loan:
(a) change age conditions from 62 Plus to NO AGE REQUIREMENT.
and (b) instead of age percentage base asset required,use 100% of REAL APPRAISED VALUE.
Problem solved: All homes  become owner occupied.All housing supply will be eliminated by demand,demand by end-users.(85% that wish to stay and 15% that wish to get an AFFORDABLE home) ACTION:Solve this trillions of dollars crisis  at no cost to the taxpayers,and allow for a taxpayer profit.
RESOLVED:ALL "underwater" loans and foreclosed homes to be re- purchased (by present lender or any FDIC insured lender)at 100% of FAIR MARKET VALUE.Old Loan to be marked "paid-in-full"This is a one time deal and could be done in 6 months or less,as all that is needed is an appraisal and a closing,settlement.
PURCHASE to be made by any lender willing to take 10 year treasury rate on note FULLY BACKED 100% by FHA,creating a 100% backed,100% asset!
And why not?a loan on the books that would require NO reserves!
  
Legislation is  already in place for FHA to do this and NO NEW FUNDING IS REQUIRED.
PAYMENT IS GUARANTEED.We need only to enhance the present HECM rules
to allow 100% asset without any owner age resriction.Payments to be made for the ten year portion
will be very low and for that reason perhaps 0% ,yes, 0% loss.Anyone that wishes to default will have people in line willing to pick up their payments and even give something for the right to do it.
NEW LOAN: is a special  "EVERYBODY WINS PLAN" loan
A 10 Year  loan that has fixed payments (120)  with  payment number 121 (the magic bullet) ......  paying the balance in full.Because of the low cost of the funding(12/31/08 @ 2.08%)now @ 3% and maybe even lower because upon announcement of this solution which does not require $4 Trillion in federal borrowing.This is a  special long term payback that will  be a very affordable payback.
TERMS FOR THE NEW LOAN:120 fixed, low, and affordable monthly payments that consists of........
.............. (A) payment  of  total interest (10 yrs);
                (B)15% of principal ; 
                 (C)15% for  taxes and insurance.
This is a total payment ,known as  P.I.T.I.   
MAGIC BULLET:Payment number 121..the new 30 year mortgage.. is given by a third party lender to the owner at a fixed prevailing rate,for the 85% balance,PLUS 5% TAXPAYER PROFIT ,then the  NEW 30 year NOTE  is to be 90% of what  the original modified loan was.(If $4 Trillion needed that's $200 Billion profit).
Example:$100,000 "EVERYBODY WINS LOAN" 
LOAN AMOUNT $100,000 with payments to include:
A...Total 10 years interest.(3%).............. $30,000 
B...15% for principle reduction........... .$15,000
C..15%..TAXES and INSURANCE.....$15,000 
TOTAL.......................................................$60.000
paid by 120 fixed equal  payments of $500.00 each...... wow, how affordable is a $100,000 mortgage at a total
P.I.T.I.
payment of $500.00 per month???)
Then the  with payment number 121 the note is paid in full with a new
30 year loan that is 90% loan to value (or less,if values increase)


To calculate payment for 10 year portion use a factor of $5.00 per $1,000.
Example:, if loan amount is $250,000;payments of $1250.00
 ($250 X 5.00 = TOTAL PITI FOR A HOME VALUE OF $250,000
at an unbelievabe low $1250.00
 REPEAT: Extremely affordable.A sibling working at a minnimum wage could pay the mortgage for the entire family! It is total payment...P.I.T.I.

Thank you,Paul Volcker......"An outside agency"  THE FHA AND HUD
                     Robert Shiller...."properly funded" 100% ASSET BASED GUARANTEED LOAN
                     Dr. Yunus..........." a profittable business that does
                                                      a  social  good." STOP ALL FORECLOSURES AND SHORT  SALES,REPLACE              
 WITH AFFORDABLE HOUSING FOR ALL AMERICANS

"EVERYBODY WINS PLAN"
 
An anouncement of this plan with details could create an immediate RELIEF and "CREDARE"-CREDIT-TRUST in the AMERICAN SYSTEM.
"THE EVERYBODY WINS PLAN"    REQUEST DETAILS,ASK QUESTIONS:email
bestsolutions at aol dot com