Empower Individual Homeowners Turn “Toxic” Assets Into Valued Assets. Today I want to talk about Financial Equalization, The Mortgage Killer, FEAT Plan: http:// http:// The. Bail Out Hypathetical Scenario Article.
Research: Clearly Canadian: Improving Equity and Accountability with an Overarching Equalization Program. The C. D. Howe Institute is an independent not- for- profit research institute whose mission is to raise living standards by fostering economically sound public policies.
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We were astonished at how simple the Program works. FINANCIAL EQUALIZATION “ The Mortgage & Debt. Allowing you to put the equity in your home to work on. Review of the Canadian Equalization and Territorial Funding System Bev Dahlby Professor in the Department of Economics and Fellow of the Institute for Public Economics. 10 Ways to Lower Your Mortgage. If you're wondering how to lower your mortgage payments each. The Mortgage Equity-Equalization Program - Tax breaks for lost value. WASHINGT A AR VENUE 1 SEPTEMBER 2016 Property Tax Deferral for Senior Citizens and Disabled Persons Eligibility Requirements To be eligible for this program you.
Empower Individual Homeowners . The “Mortgage Equity- Equalization Program” will end the foreclosure crisis by giving individual homeowners “cash vouchers” that are equal to the lost value of their real estate. Declining real estate values has been the primary cause of the financial meltdown.
If we could return home values to what they were three years ago, the foreclosure crisis would end.“That’s exactly what the . Let’s stop the bailout madness and take action now to turn . No additional money is required. Give homeowners with sub- prime mortgages a “cash voucher” that is equal to the percentage decrease in home values over the last three years (around 2. For example: Let’s say you bought a $2. Home values nationally have declined 2. The government would take money from the $3.
This will “equalize” the equity in your home. You will now have $1.
This puts the homeowner’s equity position back where it was before the housing crisis happened. The Bank will be permitted to use this “cash” under the conditions that they modify the terms of the loan to reflect a $4.
AND modify the terms to reflect the current mortgage market. At an average of $1. After modification, banks would cash in these vouchers with the Federal Government, thus “infusing” much needed cash into the banking system. Note that the SAME $4.
Homeowner’s personal financial circumstances. Homeowners now will hold a mortgage debt that reflects current home values, thus removing most instances of mortgages with balances that exceed home value (a prime cause of default and foreclosure). This program will “stabilize” the housing market by vastly reducing foreclosures. It also removes the need for the government to “guarantee” toxic assets because toxic assets will become viable assets. The homeowner will now have an extra $4. This translates into a $4.
Multiply this by millions of households and you’ve taken care of “Main Street” AND “Wall Street”. Note that some estimates show that more than two million homes are in danger of foreclosure. This program should be able to prevent most of these foreclosures. Combine this will government- backed FHA or other loan programs, and the housing crisis will be over. The program will also help homeowners who want to sell their homes, but the sale price does not cover the mortgage balance.
That homeowner can now sell that house for the market price of $1. Though the Feds will try and attach all kinds of strings to this, it remains a simple and viable solution to TWO MAJOR problems: foreclosures and a sagging economy. Imagine the Federal Government killing two birds with one stone.
It would be master stroke. Whether the homeowner wants to keep the house or sell the house, this program will reduce the number of forecloses and will infuse cash into the mortgage banking industry AND the general economy. This program empowers INDIVIDUALS BY LETTING them DECIDE if they want to renegotiate and stay in their homes or sell their home. Homeowners will be free to make the deal that’s best for them.
The program will be SAFE for taxpayers because only a bank can cash in a voucher and then only if the Bank has made the terms of the renegotiated loan viable for both homeowner and financial institution. Of course, homeowners will still have to “re- qualify” for their loan modification. But the lower monthly costs on a modified loan will help them qualify easier. There are many details regarding this proposal that will need to be worked out, but the basic concept is surely one that deserves the attention of Washington. There are other aspects of the proposal that are designed to insure that such a massive breakdown in the U.
S. This piece of legislation is directly responsible for the mortgage crisis because it requires banking institutions to make bad loans. The second requirement would be the “break- up” of Fannie Mae and Freddie Mac. Like the “trust busters” did to railroads and phone companies in the past, we must “break- up” Fannie and Freddie. A half dozen or so regional versions of these companies would insure that if one goes bad, it does not bring down the whole economy.“At a time when trillions of dollars are flowing from Washington to correct the economy,” Flanagan states, “I have seen nothing to help millions of hard- working homeowners.
Let’s get the Mortgage Equity- Equalization Program on the Congressional Agenda and let’s start helping Americans hold on to the American dream”. Stephen Flanagan is President of SPC Marketing Company and Stevens Publishing Company, both headquartered on Long Island, New York. Flanagan has many years of experience as a businessman and has been politically active for decades.
He is also a co- founder and executive director of the Conservative Society for Action. Footnotes: * This program is designed to address the needs of sub- prime mortgages only.
The current housing crisis is tied directly to the requirement that banks makes these loans and the fact that these loans are primarily responsible for rising foreclosures and the strain on the banking system. The voucher value would be determined by the mortgage balance.
If you have a $2. If you bought a house for $2. This would result in a $3. The equity voucher percentage would be based on actual home value declines (2. Additionally, the voucher value would not exceed the combined value of the mortgage balance and the original purchase price of the house.